Does Car Insurance Cover Lawyer Fees? 

Having an attorney on your side might make all the difference in a car accident case. Even so, many people are hesitant to hire a personal injury attorney Salem to defend them owing to concerns about high attorney fees. Many people are unaware that these expenses may be covered. 

If you possess auto insurance, your insurance company may pay some of your attorney’s fees. This is mostly determined by whether you are the claimant or the defendant. In other circumstances, for example, you only pay legal expenses if you receive a settlement or a court judgment. 

When your insurance provider may cover legal fees 

The other party may initiate a lawsuit against you if you are charged with causing a car accident. A personal injury lawsuit is a type of legal action in which the other party demands you compensate them for their losses and injuries. In this situation, your insurance company will appoint an attorney and pay the legal fees on your behalf. 

If you are the one who is suing another driver, you will have to hire your lawyer. While you are responsible for the attorney’s expenses in this matter, most personal injury law companies have a contingency fee policy. 

How much does it cost to hire a lawyer? 

You will not spend anything upfront or out of pocket if you hire a law company that only takes contingency fees. Instead, your legal bills will be a percentage of the total compensation you receive. 

The amount varies per firm but is usually between 25% and 40%—the number may grow if you go to trial. In the United States, the average cost is 33% of the settlement value. If you received a $100,000 settlement, your legal fees might be a third of that amount, or roughly $33,000. 

It is important to look at the fee structure of the law firm and what proportion of the settlement you can expect to pay for representation. Before agreeing to hire the firm, you can usually obtain this information during a free consultation. 

Do you have to go to court? 

Absolutely not. If your vehicle accident claim may be handled out of court, you do not have to go to trial. In reality, it is often in the best interests of the insurance company to settle accident claims before going to court. Judicial proceedings are costly, and the insurance company may save much on court fees. It can also save you significant time and leaves your attorney in charge of settlement negotiations. 

For more information on what to do after a car accident, talk to an experienced car accident attorney today.