# Contingency fee

> A contingency fee is a lawyer's fee paid as a share of what you recover. If there is no recovery, there is usually no fee. How these agreements work.

Canonical page: https://accidentclaimfacts.com/glossary/contingency-fee/  
Last reviewed: October 29, 2026 by the Accident Claim Facts editorial team  
General information, not legal advice. Talk to a licensed attorney in your state.

## Quick answer

A contingency fee is a lawyer's fee paid as a percentage of what the client recovers, instead of an hourly rate. If there is no recovery, there is usually no fee. Depending on the agreement, the client may still owe some case costs.

## In a car accident claim

Most injury lawyers work this way, so people can hire a lawyer without paying up front. The terms are set in a written fee agreement. Under the ABA's model rule, the agreement must state the percentage the lawyer takes if the case settles, goes to trial or is appealed, the expenses to be deducted, and whether they come out before or after the fee. In Texas, a contingent fee contract must be in writing and signed by the attorney and client.

The percentage is not unlimited. Under the ABA's model rule, a lawyer may not charge an unreasonable fee or an unreasonable amount for expenses. Some rules set levels: in Florida, for example, a fee above 33 1/3% of any recovery up to $1 million before an answer is filed is presumed excessive. For claims against the federal government, fees are capped at 20% of an administrative settlement and 25% after a lawsuit. Our guide to [contingency fees](https://accidentclaimfacts.com/money/contingency-fees/) explains the math, and [fee agreements](https://accidentclaimfacts.com/choosing-a-lawyer/fee-agreements/) and [questions to ask a lawyer](https://accidentclaimfacts.com/choosing-a-lawyer/questions-to-ask-a-lawyer/) cover what to check before signing.

## Example

> **Example:** A client signs an agreement under which the lawyer takes one percentage if the case settles before a lawsuit is filed and a higher one if it goes to trial. The case settles during negotiation, so the lower percentage applies, and the case costs are handled the way the agreement says.

## Related terms

- [Fee agreement](https://accidentclaimfacts.com/glossary/fee-agreement/)
- [Case costs](https://accidentclaimfacts.com/glossary/case-costs/)
- [Closing statement](https://accidentclaimfacts.com/glossary/closing-statement/)
- [Quantum meruit](https://accidentclaimfacts.com/glossary/quantum-meruit/)

## FAQ

### What percentage do car accident lawyers charge?

It varies by lawyer, by state and by how far the case goes, and many agreements use a higher percentage if a lawsuit is filed or the case goes to trial. Some states limit fees by rule, and the agreement must spell out the percentage.

### Do I pay anything if I lose?

Usually there is no fee. But the agreement may make you responsible for some expenses whether or not you win, so read the section on costs before you sign.

## Sources

- [Cornell Law School, Legal Information Institute, Wex: contingency fee](https://www.law.cornell.edu/wex/contingency_fee) — general definition
- [American Bar Association, Model Rules of Professional Conduct, Rule 1.5: Fees](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_5_fees/) — reasonable fees and contingent fee agreements
- [Texas Legislature, Government Code § 82.065(a)](https://statutes.capitol.texas.gov/Docs/GV/htm/GV.82.htm), checked October 29, 2026
- [The Florida Bar, Rules Regulating The Florida Bar, Rule 4-1.5(f)(4)(B)(i)](https://www-media.floridabar.org/uploads/2026/10/2027_04-OCT-Chapter-4-RRTFB.pdf), checked October 29, 2026
- [Cornell LII, 28 U.S.C. § 2678](https://www.law.cornell.edu/uscode/text/28/2678), checked October 29, 2026