What Is a Contingency Fee and How Does It Work?
A contingency fee is the reason you can afford an attorney even when you can't afford anything else. Here's exactly how it works.
The Basic Concept
With a contingency fee, you pay nothing upfront. Your attorney's fee is a percentage of your recovery. If you don't win, you don't pay.
Typical Percentages
Most personal injury firms charge 33-40% of the recovery. The percentage may vary based on whether the case settles or goes to trial.
What About Costs?
In addition to attorney fees, there are case costs: filing fees, expert witnesses, medical records, depositions. Many firms advance these costs and deduct them from your recovery.
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Free Case Evaluation →How the Math Works
Example: You receive a $100,000 settlement. Attorney fee at 33% = $33,000. Case costs = $5,000. You receive $62,000.
Without an attorney, the insurance company's first offer might have been $15,000. The math speaks for itself.
Questions to Ask
- What percentage do you charge? - Does the percentage change if the case goes to trial? - Who pays case costs if we lose? - Are there any fees beyond the contingency percentage?
This article is general information only and does not constitute legal advice.
About the Author
Margaret WhitfieldFounding Partner · General Practice
Founded Hargrove & Associates 14 years ago. J.D. from State University School of Law. Career recoveries over $31M. Known for meticulous preparation and willingness to go to trial when insurance companies refuse fair settlements. Also maintains an active criminal defense practice. $2.1M wrongful death verdict — the largest single verdict in NVC history. $840K car accident settlement where the insurer initially offered $45K. DUI dismissed due to procedural violations. NVC Business Chamber member. Youth mentorship program founder.
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