Number one reason why most people hesitate hiring an attorney is legal fees. In a traditional hourly payment structure, legal fees can increase exponentially in proportion to the difficulty of the case. It is impossible to approximate how many hours an attorney will have to work on your case, so it is a risky commitment for most people with average income. One way to prevent the uncertainty of what you will have to pay to an attorney is by entering into a contingency fee agreement.

If you enter into a contingency fee agreement with an attorney, an attorney will not collect hourly fees for legal representation. Instead, the attorney will be compensated at the end, by taking a percentage of the total award. Typically, in a personal injury car accident case, the attorney will work on a one-third (33.3%) contingency of the final settlement. If the case is more complex, and a lawsuit must be filed, an attorney will generally work on a 40% contingency. If you end up losing the case, under a contingency fee agreement, your attorney will not bill you for the hours the attorney worked on your case.

In a contingency fee agreement, an attorney will front all costs related to hiring experts, obtaining records, etc. As a result, contingency fee agreements provides access to legal services to individuals that are concerned about hourly legal fees.