After an accident, many drivers file a personal injury claim in the hopes that they will receive compensation to cover their medical expenses. Unfortunately, insurance providers frequently offer an initial settlement far below the actual value of a claim, if they don’t reject the claim entirely.
If you have experienced this firsthand, you may have already tried negotiating your settlement without success. If that’s the case, your best option is to file a personal injury lawsuit against the party or business responsible for your injuries. Before doing so, however, it’s important to understand the costs involved in litigating a personal injury case and how that might factor into your settlement.
Contingency fees explained
When pursuing litigation in a personal injury case, many people believe that the attorney’s fees are not worth the price of admission. However, most personal injury attorneys operate on contingency fees and only receive compensation if the case is successful.
Rather than charging an hourly rate, your attorney will instead receive a percentage of your settlement as payment only if you win your case. For litigated cases, this is often around 40% of the final settlement.
Litigation often yields a higher settlement
While the fees for litigating your personal injury case may seem high up front, remember to keep in mind the large settlement you could receive. Often, plaintiffs in personal injury cases end up with a net settlement of around 50% of their final settlement, after factoring in all fees. Even 50% of a settlement will likely be significantly more than the original settlement your insurance provider likely offered you.
No two personal injury cases are the same, and the cost of yours will depend on the specifics of your case. Making the decision to take your case to court may be the key to receiving a settlement that accurately reflects the severity of your injuries.