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Glossary

Contingency fee

A lawyer's fee paid as a share of what you recover. If there is no recovery, there is usually no fee.

Last reviewed By the Editorial team 2 min read

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. The written contract that hires a lawyer. It says what work the lawyer will do, how the fee is worked out and who pays the costs of the case. Glossary. 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 explains the math, and fee agreements and questions to ask a lawyer cover what to check before signing.

Example#

Questions people ask

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

  1. Cornell Law School, Legal Information Institute, Wex: contingency fee — general definition
  2. American Bar Association, Model Rules of Professional Conduct, Rule 1.5: Fees — reasonable fees and contingent fee agreements
  3. Texas Legislature, Government Code § 82.065(a) — as of October 2026
  4. The Florida Bar, Rules Regulating The Florida Bar, Rule 4-1.5(f)(4)(B)(i) — as of October 2026
  5. Cornell LII, 28 U.S.C. § 2678 — as of October 2026

Last reviewed October 29, 2026 by the Accident Claim Facts editorial team. Found an error? Tell us.

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