Author: Shelby Benavidez
Contributing Attorney: Zain Pleuthner, attorney
Being in a car accident can be scary and overwhelming. You’re dealing with your injuries, lost income, and insurance companies – it’s a lot to handle on your own. While some people may know there’s help out there, they’re hesitant to hire a lawyer out of fear that the attorney will take most (or all) of their settlement. We understand that trusting an attorney with your case can be a daunting decision. We want to provide you witheverything you need to know about hiring a car accident attorney so you can feel confident about what to expect and make a well-informed decision.
Breaking Down Attorney Fees After a Car Accident in Texas
Contingency Fees: Paying a Car Accident Attorney
In Texas, most personal injury or car accident lawyers work on a contingency fee basis, which means you don’t pay the lawyer up front. Instead, your attorney takes a percentage of whatever recovery you get. If you can’treach a settlement or don’t win your case, typically, your attorney will eat the cost of whatever they have put into your case – they simply won’t get paid.
At the beginning of your case, you and your lawyer will sign an agreement (in writing) that spells out the percentage they’ll take. This is a requirement in Texas. The fee is then taken out of your settlement or verdict. You will never write the attorney a check – instead, they’ll write you one for the remainder of your settlement! That’s one reason this model is popular, especially for people who can’t afford large upfront legal fees.
A trustworthy attorney will be open and transparent about their fees. When you meet with a lawyer, be sure to ask what percentage they will charge, if it will increase if they have to file a lawsuit or take your case to trial, what expenses you may have to reimburse, and how the fees will be deducted from your settlement.
Industry Standard Rates for Personal Injury Attorneys
As with most services, there is an industry standard rate for personal injury attorneys. Most car wreck attorneys in Texas, including Daniel Stark Injury Lawyers, will charge somewhere between 33% and 40% of your recovery. Firms may agree to a set rate, or rates may be flexible depending on the trajectory of your case. For instance, if your case settles out of court before a lawsuit is filed, the rate will probably be about one-third of your settlement (33.33%); versus if it goes to trial or appeals, the rate may be closer to 40%. The details of your rate should be included in your original contract.
So, let’s say you settle for $100,000, and your attorney’s fee is 33.33%. Your attorney’s share would be approximately $33,333, leaving you with about $66,667. It’s important to note that this is before other case expenses are taken out.
Personal Injury Case Expenses
There are certain case expenses that exist regardless of whether you choose to hire an attorney or DIY your case. It costs money to file a lawsuit, to serve the defendant; there are deposition fees and medical records. If you are handling your case on your own, these costs will have to be paid up front and out of pocket. However, if you have an attorney handling your case, the lawyer will advance those expenses, and they will later be deducted from your settlement.
For example, a smaller case may not have many expenses and may be resolved quickly. Larger, more complex cases, however, may have additional fees for filing a lawsuit, calling in expert witnesses, etc. Using the same example as before, these expenses would be deducted from your remaining $66,667.
The bottom line is that your net recovery will be the remainder of the settlement after attorney fees and case expenses. Sure, you can choose to accept the insurance company’s offer and call it a day, but this may cost you more later on if your injuries persist or worsen.
Is It Worth Hiring a Car Accident Attorney in Texas?
Car Accident Attorneys Can Get You More Money
Many people think that because an attorney is going to take a percentage of their settlement, it isn’t worth hiring one. You could get the same amount of money on your own, right? Unfortunately, that is almost never the case. Hiring a qualified car accident attorney can increase your overall recovery in a way that outweighs their fee.
Research for personal injury cases shows that individuals who hire an attorney get three times more on average than those who don’t. This is because car accident attorneys have experience negotiating with insurance companies. They know the insurance companies’ tricks and delay tactics; they know what types of damages to ask for, including medical bills, future medical expenses, lost wages, and they know the impact of your unique story. If the insurance company is dragging its feet, an attorney can file a lawsuit on your behalf. They can manage your case to satisfy the statute of limitations, collect documentation, evidence, and develop a skilled legal strategy to get you full value.
The fact of the matter is that attorneys bring an intimidation factor that individuals don’t have on their own. Insurance companies are backed by a team of lawyers who are trained in minimizing claims. Skilled attorneys build reputations within the field, and when insurance sees you’re backed by a successful firm, they are going to put more money on the table.
Even though you’ll pay a percentage, if the attorney can get you three times more than the insurance company’s initial offer, your net after fees will likely still be significantly higher than what you would have gotten on your own.
Examples of Settling with an Attorney vs. Without
Let’s say you were in a car accident and your medical bills (so far) are $10,000. The insurance company offers you the same amount to close your case as quickly as possible. Maybe you accept the settlement to put the incident behind you, pay off your medical bills, and you think you’re in the clear.
Now, let’s say you hired an attorney before accepting the insurance company’s offer. Through skillful negotiation, your attorney gets you three times the initial offer. Insurance pays $30,000. The attorney’s fee is 33% ($9,999), so your take before case expenses and medical treatment is $20,001. Even after subtracting, say, $2,000 in case expenses and $10,000 for medical, you pocket just over $8,000.
In reality, the difference can be much larger when injuries are severe, when insurers push back, or when the case must be litigated. Of course, this is a simplified example – every case is different. But the core idea is that paying a percentage may feel like “giving up a lot,” but if the attorney helps you recover much more than you could alone, you can still end up with more money in your pocket.
Choosing the Right Attorney: Cheaper Doesn’t Mean Better
It can be tempting to choose the lawyer who advertises a fee of “only 20%” or promises unusually low rates. However, a lower fee doesn’t always translate into better value. A lawyer’s experience, track record, and resources can make a significant difference in your outcome. For instance, it’s important that the attorney has solid experience handling car accident cases in Texas and a proven record of successful results. Another major factor is whether the attorney has the necessary resources, such as investigators, expert witnesses, and access to medical professionals, to build a strong claim.
The scope of services matters, too. Some lawyers handle every stage of the process, from negotiations and litigation to managing liens and appeals, while others may only take care of the basics. In addition, some “discount” firms may offset their lower fees by cutting corners or adding hidden costs later. The truth is, a lawyer who charges less upfront may not invest the same time, energy, or expertise as one who takes a standard rate. As a result, you might end up settling faster, accepting a lower amount, or facing more risk overall.
On the other end of the spectrum is the “white-glove” service model. This approach usually means hiring a law firm that offers personalized attention, clear and consistent communication, and a commitment to keeping you informed throughout the process. These attorneys typically go above and beyond, pushing aggressively for the best possible outcome, employing a full team of staff and experts to gather evidence, and being fully prepared to take the case to trial if necessary. Naturally, the fee for this type of service may be on the higher end of the typical contingency range, but that additional investment can pay off. If the firm’s dedication and expertise help you recover even 40% more than you might have otherwise, the higher fee becomes well worth it.
Key Takeaways: Hiring a Car Accident Attorney in Texas
Navigating a car accident settlement in Texas can feel overwhelming – and part of that is the worry about legal fees after hiring a car accident attorney. But by understanding how contingency fees work, what standard rates are, and what costs to expect, you put yourself in a much stronger position.
If you’ve been in a car accident and are considering legal help, schedule consultations with a few attorneys. Ask the right questions, compare fees, services, and results, and pick someone you trust. You deserve clarity, fairness, and a lawyer who’s committed to your best outcome.
