A car accident lawyer on contingency is paid a percentage of what is recovered, set in a signed written agreement. No law fixes that percentage for car accidents, so read the agreement for the fee, the costs and what you owe if you lose. Deadlines to sue are generally two years in California (CCP 335.1) and Texas (CPRC 16.003), three in Washington (RCW 4.16.080).
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How does a contingency fee work?
Under a contingency fee, the lawyer’s pay depends on the result. If money is recovered by settlement or verdict, the lawyer takes the agreed percentage. If nothing is recovered, no fee is earned.
Each state requires the deal to be in writing:
- California. Business and Professions Code section 6147 requires a written contingency agreement that states the percentage, explains how costs affect the fee and your recovery, and says the fee is not set by law and is negotiable. You must receive a signed copy when you sign, and an agreement that breaks these rules can be voided by you, leaving the lawyer a reasonable fee, according to the State Bar’s fee agreement instructions.
- Texas. A contingent fee contract must be in writing and signed by the attorney and the client (Government Code 82.065). If the percentage changes at settlement, trial or appeal, each percentage must be stated (rule 1.04(d)).
- Washington. The agreement must be signed by you, state how the fee is figured and list the percentages for settlement, trial or appeal (RPC 1.5(c)).
What percentage do car accident lawyers charge?
We found no court, state bar or agency in California, Texas or Washington that publishes a standard percentage for car accident cases, so treat any “typical rate” you see online with caution. What the law does say:
- In California the percentage is negotiable, and the agreement must tell you so. Fixed maximum percentages apply only to claims against health care providers under section 6146, which do not include car accidents.
- California rule 1.5 forbids unconscionable fees and lists what is weighed, including the amount of the fee compared with the value of the work, whether the lawyer disclosed the material facts and whether the fee is fixed or contingent.
- Texas and Washington require the agreement to state the method used to figure the fee.
So the question to ask is what percentage this agreement uses, whether it rises if a lawsuit is filed or the case goes to trial, and whether the lawyer will put that in writing before you sign.
What is the difference between attorney fees and case costs?
The fee pays the lawyer. Costs are the out-of-pocket expenses of the case. California’s court form for claiming costs lists items such as filing and motion fees, jury fees, deposition costs, service of process and witness fees (form MC-010). Medical records fees and charges for hired witnesses such as doctors can also be part of a case.
Whether costs come out before or after the fee is calculated changes your share. Texas rule 1.04(d) and Washington RPC 1.5(c) require the agreement to say which.
Example only. The settlement, costs and percentage below are invented to show the arithmetic. The 25 percent figure is not a typical, recommended or Beverly Law rate. Your agreement and your facts decide the real numbers.
| Step | Costs taken out after the fee | Costs taken out before the fee |
|---|---|---|
| Settlement | $60,000 | $60,000 |
| Amount the fee is figured on | $60,000 | $57,000 (after $3,000 costs) |
| Fee at 25 percent | $15,000 | $14,250 |
| Costs repaid | $3,000 | $3,000 |
| Left before liens | $42,000 | $42,750 |
Who pays the costs if I lose my case?
Two separate questions hide in this one.
Costs your lawyer advanced. California rule 1.8.5 lets a lawyer advance the costs of a claim with repayment contingent on the outcome. Texas rule 1.08(d) allows the same. Washington’s rule differs: a lawyer may advance litigation expenses provided the client remains ultimately liable for them (RPC 1.8(e)), and the agreement must clearly tell you which expenses you would owe whether or not you win. Read that section of any agreement closely.
The other side’s court costs. A party that wins can usually recover certain court costs from the side that lost. In Texas, the successful party recovers its costs from its adversary (rule 131). In Washington, the prevailing party in superior court is entitled to costs and disbursements (RCW 4.84.030), including filing and service fees (RCW 4.84.010). California’s MC-010 form is how a winning party claims them. Ask the lawyer how the agreement treats that risk.
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What comes out of my settlement, and in what order?
Settlement money usually goes into the lawyer’s trust account first. In California, the lawyer must keep client funds there and account to you in writing (rule 1.15). Washington requires a written accounting after money is paid out or when you ask (RPC 1.15A). In Texas and Washington, at the end of a contingency case the lawyer must give you a written statement showing the outcome, what was paid to you and how it was calculated.
From the gross amount come the fee, the costs and any liens, such as a hospital, health plan or Medicare. When Medicare is repaid, it asks for the attorney fees and costs the beneficiary paid and takes them into account (CMS). Our page on your settlement check follows the money step by step.
What to do now
- Note your deadline to sue, which is generally two years in California (Courts Self-Help Guide) and Texas (CPRC 16.003), three years in Washington (RCW 4.16.080).
- Ask for the fee agreement before you sign and take it home if you want.
- Find the percentage, whether it changes if a lawsuit is filed, and whether costs come out before or after the fee.
- Find the section on what you owe if there is no recovery.
- Ask how liens will be handled and whether the lawyer negotiates them.
- Keep your signed copy.
Ask us to walk you through the fee agreement
We will explain our agreement line by line before you sign anything. Call Beverly Law at (310) 552-6959. We handle car accident cases in California, Texas and Washington. You owe no fees or costs unless we win.
Common questions
Can I negotiate the percentage?
You can always ask. In California the agreement itself must say the fee is negotiable.
Do I pay anything up front?
Under a contingency agreement, often not, but read the costs section. Some agreements have the lawyer advance costs and recover them from the settlement.
What if I change lawyers?
Your agreement explains what the first lawyer may claim from a later recovery. Read that section before you switch.
What if I think the fee is wrong?
In California, the State Bar runs a fee arbitration program, and in most cases the lawyer must agree to arbitrate if you ask. Lawyers must also tell clients in a fee dispute that arbitration is available (State Bar). In Texas, the Client-Attorney Assistance Program helps clients and lawyers resolve concerns.
Who handles Texas cases at Beverly Law?
Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou.
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Related pages
Car Accident Settlements · Car accident settlements · Is it worth getting an attorney? · Your settlement check: who gets paid · Car accident settlement calculator · Law Blog
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Sources
- State Bar of California: Sample Written Fee Agreement Instructions (Business and Professions Code 6147 and 6148)
- State Bar of California: Rules of Professional Conduct, chapter 1 (rules 1.4.1, 1.5 and 1.8.5)
- State Bar of California: Rule 1.15, Safekeeping Funds and Property of Clients
- State Bar of California: Resolving fee disputes with your attorney
- State Bar of California: Mandatory Fee Arbitration Program
- Judicial Council of California: form MC-010, Memorandum of Costs (Code of Civil Procedure 1032 and 1033.5)
- California Courts Self-Help Guide: statute of limitations
- Texas Government Code chapter 82 (section 82.065)
- Texas Disciplinary Rules of Professional Conduct (rules 1.04 and 1.08)
- Texas Rules of Civil Procedure (rule 131)
- State Bar of Texas: Client-Attorney Assistance Program
- Texas Civil Practice and Remedies Code chapter 16 (section 16.003)
- Washington Rules of Professional Conduct 1.5
- Washington Rules of Professional Conduct 1.8
- Washington Rules of Professional Conduct 1.15A
- Revised Code of Washington 4.84.010
- Revised Code of Washington 4.84.030
- Revised Code of Washington 4.16.080
- Centers for Medicare and Medicaid Services: Medicare's recovery process
Important: This page is general information, not legal advice, and reading it does not create an attorney-client relationship with Beverly Law. Laws change and every case is different; talk to a lawyer about your own situation. Attorney advertising. Prior results do not guarantee a similar outcome. You owe no fees or costs unless we win. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: 2026-11-12.