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Legal Minute: Contingency Fees

You don’t need an injury lawyer, until you do.

So when you do, how do you pay him?

Most injury lawyers work on a contingency fee basis. You only pay if the lawyer is successful in getting you compensation. You are charged a percentage of the amount the lawyer gets for you. Usually about 30%.

The at-fault driver’s insurance company will pay:

Damages for things like pain and suffering and loss of income;

Interest on your damages; and

A contribution toward your legal fees.

The contingency fee is calculated on only the damages and interest.

Let’s say the defendant paid $10,000 to you for damages and interest. Your legal fee would be $3,000, leaving you with $7,000.  The defendant’s contribution toward your legal fees in this example would be about $1,500.  That’s your money to keep increasing your net recovery to $8,500.

You don’t need an injury lawyer, until you do. When you do, a contingency fee agreement is usually the way to go.

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