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Car Accidents

Legal Costs in a Texas Car Accident Case

In many cases involving car accidents, individuals find it necessary to hire a personal injury attorney in Texas to safeguard their interests against large insurance companies.

However, concerns arise: Aren’t lawyers expensive? What do the legal costs in a car accident case look like?

There are a variety of fee arrangements that attorneys employ for personal injury claims stemming from car accidents.

Stephen Stewart, our dependable and skilled Austin-based attorney at the Stewart Law Firm, will outline and discuss the various types of attorney fee arrangements below, providing clarity and insight into the process.

Types of Fee Arrangements for Personal Injury Cases in Texas

When it comes to hiring an experienced personal injury attorney, understanding the fee arrangements available is crucial. These arrangements dictate how legal representation in your case will be compensated, impacting your decision on which lawyer to hire. 

The three primary types of fee structures offered by personal injury attorneys are essential to grasp because they directly affect both your access to legal services and the financial aspect of your case. These include:

  • Flat Fee Agreement
  • Hourly Fee Arrangement
  • Contingency Fee Agreement

Each arrangement has advantages and considerations tailored to different types of cases and client situations. Understanding these can provide clarity and confidence as you navigate your personal injury claim.

1. Flat Fee Agreement

A flat fee agreement involves the attorney charging a flat rate or fixed fee for the services they are going to provide you with. Typically, this type of agreement requires a one-time upfront payment to retain the attorney for the duration of the case.

2. Hourly Fee Arrangement

An hourly fee arrangement involves your attorney charging an hourly rate for the time they dedicate to your case.

Typically, the attorney keeps track of the time spent working on your case and bills you either after the case concludes or on a previously agreed-upon billing cycle.

3. Contingency Fee Agreement

A contingency fee agreement means you only pay the attorney a percentage of the settlement fee once it is obtained.

This arrangement means there’s no upfront cost — you only pay if and when your case is successful.

Contingency fee agreements are the most common fee agreements among personal injury attorneys, although the fees can vary. Many attorneys request agreements where you’ll pay them about a third of the settlement, but the exact percentage depends on the specifics of the case and the attorney.

Contingency Fee Arrangement at The Stewart Law Firm

At the Stewart Law Firm, we operate predominantly on a contingency fee basis for our cases. This approach aligns our interests with those of our clients, ensuring we are motivated to achieve the best possible outcome for you.

To help understand what this means for those considering our services, below are the most frequently asked questions we receive from potential clients regarding our contingency fee structure and what that can look like:

Hourly Fee Arrangement

An hourly fee arrangement is when your attorney gives you an hourly rate for all the time they spend on your case. 

Usually the attorney tracks the time they spend working on your project and bill you after the case, or on an agreed cycle.

1. How do you manage the costs associated with the case?

In pursuing a legal case, it’s important to understand that certain expenses have to be managed upfront. These expenses are diverse and can significantly impact the overall cost of pursuing your case. 

They typically include fees for witnesses whose insights are crucial for strengthening your case, various court costs that are inevitable in the litigation process, and expenses related to conducting thorough research.

At the Stewart Law Firm, we recognize the importance of transparently addressing these costs. As we work through our contingency fee agreement, we’ll discuss the best ways to handle these types of costs according to your situation.

2. How does the fee arrangement work after the case is resolved?

You’ll receive your payment when you either settle the claim or win at trial.

Therefore, when it comes time to pay your attorney, you won’t be paying out of pocket. Your attorney will deduct the agreed-upon percentage from the settlement, and the remainder will be yours to use as you see fit.

Call Us at The Stewart Law Firm Today to Learn More

At the Stewart Law Firm, we’re well-versed in insurance company operations. We know how to ensure you receive the maximum benefit from your settlement and understand which settlement avenues are most advantageous. More importantly, we’re constantly on your side throughout the case—our goal is to make sure you secure the best possible deal for your injuries. That’s why we offer contingency fee plans. Contact us today at 326-3200 to discover how this arrangement could benefit your case.

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