Car accidents are some of the most stressful situations one can find themselves in. They are, by definition, unexpected, and the resulting physical and emotional pain, along with the financial strain can often be overbearing. Hiring an attorney can provide significant relief as but many people often hesitate to make that call, for one simple reason; money. 

Many people are worried about being able to afford a lawyer, others worry about upfront payments, but the truth is that personal injury law, including car accident cases, allows for unique fee adjustments which are specifically designed to protect the victims. There are even many instances where you could walk away without ever getting or paying an attorney bill. 

In this article we will try to find answers to some of the most common questions about attorney fees after a car crash; “What are no win-no fee agreements?”, “Who pays attorney fees in Arizona car accidents?”, and  “How does fault impact payment?”, so do read on if any of these might interest you.

The Basics of “No Win, No Fee” Agreements

The majority of car accident lawyers in Arizona, as well as across the country, work  on contingency fee basis, which is often called a “no win, no fee” arrangement.

In this arrangement there are no upfront payments, no retainer fees, or hourly charges to pay. Instead, the attorney only gets paid if you win the settlement or court award. If you aren’t awarded any money, you generally don’t owe the attorney any fees.  Furthermore, this compensation is percentage based, so you don’t pay by the hour, but a previously agreed percentage of your total recovery, usually 30-40 percent.

This is extremely beneficial to the victim as people injured in a car crash often have medical expenses and vehicle repair costs to take care of, and often lose wages for being absent from work. Contingency fees ensure that they don’t have to worry about attorney fees.

It’s important to note that there still might be some expenses, such as court filing fees and medical expert reports that the victim might end up paying regardless of the court case outcome, but this is to be discussed with the attorney in advance.

When the At-Fault Driver’s Insurance Covers Legal Costs

When it comes to car accident cases, it’s often not the victim who pays attorney fees at all. It's common for the at-fault driver’s insurance company to cover these fees. 

For example, if your attorney reaches a settlement with the at-fault driver’s insurance company, then the legal fees would be taken from that settlement amount, which technically means that the money wouldn’t be coming out of the victim’s pocket, but the insurance company payout.

If the case goes to court and the at-fault driver or his insurer are ordered to pay, the same principle applies’ the attorney fees will come out of that award.

Considering that the at-fault driver’s insurer also pays for their lawyer fees, the legal costs on both sides are usually not covered by individual drivers, but by insurance companies.

How Fault Impacts Who Pays Attorney Fees

In Arizona, comparative negligence rule influences how compensation, and related lawyer fees are calculated.

Partial fault: If you’re found partially at fault for the car accident, your compensation will be reduced by the percentage of fault/responsibility. In practice, this would mean that if your damages are $100,000, but you’re 40% at fault, you would be entitled to $60,000, and your lawyer fees would be based on the $60,000.

Shared costs: Considering that your lawyer’s pay depends on the amount of your recovery, your share of fault affects how much they are paid, so lawyers are incentivized to build the best case possible.

Insurance company tactics: Insurance companies will often unscrupulously try to lower their payout amount by shifting the blame on you and trying to inflate your fault percentage.

This is where the attorneys come in, as without them, victims will often accept a lower settlement that an attorney would secure them.

To simplify, even though the at-fault driver’s insurer will cover the damages, the amount you walk away with will depend on how the fault is allocated, so hiring a good car accident lawyer can make a huge difference.

Conclusion

So, who pays attorney fees in Arizona car accidents? More often than not, it’s not the victim. Contingency fee agreements and the role of insurance companies enable the victims to get legal help without paying upfront, or ever.

With that being said, it’s important to know all the determining factors, how the fees are calculated, how fault allocation influences recovery, as well as who takes care of the case expenses. With the right information, and the right car accident lawyer, the victim can focus on healing both mentally and physically while the legal team handles the rest.

In Arizona, car accident lawyers are accessible and affordable, and above all, essential is securing fair compensation.