Before hiring a car accident attorney, it’s important to know how you are going to be billed. Does the lawyer charge a flat fee, by the hour, or does he or she charge a contingency fee? Here is what to know about contingency fees from attorney John Kelly of Kelly Law Team.
A contingency fee is a one-time fee paid after the lawsuit is over and you won. If you lose the case, then both you and the attorney get nothing. This gives a big incentive for car accident attorneys to win your case. It also gives them a big incentive to win you as much money as possible.
Contingency fees also help people that cannot afford to pay hourly or flat fees to a lawyer.
The contingency fee agreement that you and your attorney have is like a contract. Your attorney will get a percentage of your winnings or settlement. He or she may also need more money to cover court costs, like paying for expert witnesses. Before the attorney starts working for you, both the attorney and you have to sign a piece of paper that makes both of you legally bound to the agreement.
Other professionals use contingency fees, like some real estate agents. If your house sells, they get a percentage of the selling price. If your house does not sell, then they do not get any fee.
