After an accident, many injury victims hesitate to contact a lawyer because they worry about the cost. You may already be facing medical bills, lost income, and car repair expenses—so the thought of paying an attorney upfront can feel impossible.
That’s where a contingency fee comes in. In personal injury law, most attorneys work on a contingency fee basis, meaning you don’t pay anything unless your lawyer wins your case. This fee arrangement makes legal help accessible to everyone—not just those who can afford to pay hourly legal fees.
If you’ve been injured and are considering hiring an attorney, understanding how contingency fees work can help you make confident, informed decisions about your legal representation.
What Is a Contingency Fee?
A contingency fee is a payment arrangement where your attorney’s fees depend on the outcome of your case. In other words, the lawyer only gets paid if you receive a settlement or court award.
Instead of charging by the hour or requiring an upfront retainer, your lawyer’s payment is contingent on successfully recovering compensation for your damages. If the attorney doesn’t win your case, you owe no attorney fees.
This system aligns your lawyer’s interests with yours—both of you benefit from achieving the highest possible recovery.
How Contingency Fees Work in Personal Injury Cases
When you hire a personal injury lawyer on a contingency fee basis, you’ll typically sign a written agreement that explains the fee percentage and what costs may be deducted.
Here’s how the process usually works:
- Free Consultation: Most personal injury attorneys offer a free initial meeting to discuss your case and determine if you have a valid claim.
- Representation Agreement: If you decide to hire the attorney, you’ll sign a contingency fee contract outlining the terms.
- No Upfront Payment: You don’t pay any money upfront for the lawyer’s time or legal services.
- Case Development: The attorney investigates your case, gathers evidence, negotiates with insurance companies, and prepares for trial if necessary.
- Settlement or Verdict: If your case is successful, the lawyer receives a percentage of the total recovery. If you don’t win, you typically owe nothing for their time.
The contingency model allows injury victims to access skilled representation without financial risk.
What Expenses Are Deducted from a Settlement?
In addition to attorney fees, some case expenses may be deducted from your recovery.
These costs cover items necessary to build and prove your case, such as:
- Filing fees and court costs
- Expert witness fees
- Medical record requests
- Accident reconstruction reports
- Investigation or private investigator services
- Deposition and transcript costs
- Travel expenses related to the case
Some lawyers pay these costs upfront and are reimbursed only if you win, while others may require payment as the case progresses. Always review your contract carefully so you know how expenses are handled.
Advantages of a Contingency Fee Arrangement
A contingency fee offers significant benefits to injury victims:
1. No Financial Risk
You can pursue justice without worrying about paying out-of-pocket for legal services. If your attorney doesn’t win, you owe nothing in fees.
2. Access to Experienced Legal Representation
Even if you can’t afford to pay hourly rates, you can still work with a skilled and experienced personal injury lawyer. This ensures equal access to justice for all victims.
3. Motivation to Win
Because the attorney’s payment depends on success, they’re motivated to maximize your compensation. The better your outcome, the better theirs.
4. Clear, Transparent Costs
You know from the beginning how fees will be calculated. There are no surprise bills or hidden charges later.
This structure creates a fair and transparent relationship between client and lawyer—one focused on results.
Contingency Fees vs. Hourly Fees and Retainers
To appreciate how beneficial a contingency fee can be, it helps to compare it to other common billing methods:
- Hourly Fees: Lawyers charge a set hourly rate, often between $200 and $500 or more. You pay for every hour spent on your case, regardless of the outcome.
- Flat Fees: A single set fee for specific services (used more in simple legal matters like drafting contracts or wills).
- Retainers: You pay a lump sum upfront, and the lawyer bills against that amount as work is performed.
For injury victims facing mounting bills, contingency fees are the most practical and affordable option. You can focus on recovery while your attorney handles the legal process without adding financial pressure.
What Happens If You Lose Your Case?
If your case doesn’t result in a settlement or verdict in your favor, you typically owe no attorney fees. However, depending on your agreement, you may still be responsible for reimbursing out-of-pocket case expenses.
Arizona law allows for the recovery of reasonable attorney fees in some civil cases, but in personal injury claims, this only applies if authorized by contract or statute. Most personal injury contingency agreements clarify that the attorney’s fee comes exclusively from the settlement or judgment, not from you personally.
Before signing, discuss what happens in every possible outcome so you fully understand your obligations. Reputable personal injury firms are transparent about fees, risks, and costs from the start.
How Contingency Fees Benefit Personal Injury Victims
Personal injury cases—like car accidents, slip-and-fall incidents, and medical negligence—often involve complex liability issues and powerful insurance companies. Most individuals cannot afford to hire an attorney hourly to fight against corporate defense lawyers.
Contingency fees make it possible for injured people to pursue claims without risking their financial stability. This system helps balance the scales of justice, ensuring that victims of negligence can stand up to insurers and recover fair compensation for medical bills, lost income, property damage, and emotional suffering.
It’s a win-win structure that prioritizes fairness, accountability, and access to justice.
Questions to Ask Before Signing a Contingency Agreement
Before hiring your lawyer, make sure you ask:
- What percentage will you charge if the case settles versus goes to trial?
- Who pays case expenses if we don’t win?
- Will the fee be calculated before or after expenses are deducted?
- Are there additional administrative or filing fees?
- How will I receive my settlement funds?
A reputable law firm will answer these questions clearly and provide a written agreement detailing every term. Transparency builds trust—and that’s essential in any attorney-client relationship.
The Power of Contingency Representation
When you’re injured because of someone else’s negligence, the last thing you need is more financial stress. The contingency fee model ensures that anyone—regardless of income—can access experienced legal help and hold negligent parties accountable.
It’s simple: you don’t pay unless you win. Your attorney invests the time, resources, and expertise to pursue the best possible result for your case, giving you peace of mind and a fair chance at justice.
Contact KRLG Injury Lawyers for a Free Consultation
If you’ve been hurt in an accident and want to understand your legal options, contact a trusted personal injury lawyer at KRLG Injury Lawyers today. We can explain how contingency fees work in your case and help you start the path toward recovery and compensation.
Visit Our Personal Injury Law Office in Scottsdale, AZ
KRLG Injury Lawyers Scottsdale
7702 E Doubletree Ranch Rd #150, Scottsdale, AZ 85258
(623) 303-5754