What are Contingency Fees for Car Accident Cases?

If you’ve been injured in a car accident on Phoenix’s busy streets or highways, you’re likely facing medical bills, lost wages, and other expenses while dealing with physical and emotional recovery. During this challenging time, the prospect of paying an attorney upfront may seem impossible. This is where contingency fee arrangements become crucial, allowing accident victims to secure quality legal representation without immediate out-of-pocket costs.

What Is a Contingency Fee Arrangement?

A contingency fee is a payment structure where your attorney’s fees are “contingent” upon winning your case. Rather than paying hourly rates or an upfront retainer, you agree to pay your lawyer a percentage of your settlement or court award. If your case doesn’t result in a recovery, you typically owe no attorney fees.

This fee structure has transformed access to justice for Phoenix car accident victims, ensuring that quality legal representation is available regardless of financial circumstances. As the Arizona Supreme Court has noted in rulings about attorney fees, contingency arrangements provide access to courts for those who couldn’t otherwise afford representation.

How Contingency Fees Work in Phoenix Car Accident Cases

Standard Contingency Fee Percentages

In Phoenix, contingency fees for car accident cases typically range from:

• 33% (one-third) for cases that settle before filing a lawsuit
• 40% for cases requiring litigation
• 45% for cases that go to trial or involve appeals

According to the Phoenix Car Accident Attorneys at GLG, these percentages may vary based on:

• Case complexity
• Expected time investment
• Potential recovery amount
• Particular challenges (like disputed liability)
• Attorney experience and reputation

What’s Covered in a Contingency Agreement

A standard Phoenix contingency fee agreement typically includes:

• Percentage of recovery for attorney fees
• How case costs and expenses will be handled
• Whether the percentage increases at certain stages of the case
• Explanation of how fees are calculated from gross vs. net recovery
• Client’s right to terminate representation
• Distribution procedure once settlement is received

Case Costs and Expenses

Beyond attorney fees, car accident cases involve various expenses:

• Filing fees for Maricopa County courts ($349 for Superior Court filings)
• Expert witness fees (often $2,000-$10,000+ per expert)
• Deposition costs ($500-$2,000 per deposition)
• Medical record collection fees
• Accident reconstruction services
• Exhibit preparation
• Courier and copying charges

Most Phoenix injury firms advance these costs, recovering them from the settlement. The Arizona State Bar ethical guidelines require clear communication about whether these costs are deducted before or after the contingency percentage is calculated.

Recent Phoenix Contingency Fee Examples

Recent cases illustrate how contingency fees work in practice:

April 2025 – I-10 Multiple Vehicle Accident
The Arizona Republic reported on a settlement for a victim of a five-vehicle crash on I-10 near the 7th Avenue exit. The victim suffered serious back injuries requiring surgery and faced over $120,000 in medical bills. The case settled for $575,000, with a 33% contingency fee ($189,750) because it resolved before filing a lawsuit. After reimbursing $22,500 in case costs and settling medical liens, the client received approximately $362,750. Without contingency representation, the victim reported that the insurance company’s initial offer was just $50,000.

March 2025 – Camelback Road Pedestrian Accident
According to AZ Family, a pedestrian struck in a crosswalk on Camelback Road near 24th Street received a $1.2 million verdict after trial. The attorney’s contingency fee was 40% ($480,000), with case costs of approximately $65,000. Though the percentage was higher due to the case proceeding to trial, the extensive work required included accident reconstruction, multiple medical experts, and a two-week trial. The client noted that without a contingency arrangement, these costs would have been prohibitive.

February 2025 – North Phoenix Rideshare Accident
ABC15 Arizona covered a case involving a 40% contingency fee for a passenger injured in a rideshare accident near Desert Ridge Marketplace. The case required filing a lawsuit because of disputes between multiple insurance companies. The $350,000 settlement resulted in a $140,000 attorney fee, with the client noting that the attorney negotiated substantial reductions in medical liens, increasing her net recovery despite the litigation-level contingency percentage.

The Legal Framework for Contingency Fees in Arizona

Contingency fees in Arizona are governed by several regulations:

Arizona Rules of Professional Conduct

The Arizona Supreme Court’s Rules of Professional Conduct (specifically ER 1.5) require that contingency fees be:

• Reasonable considering the case circumstances
• Clearly explained in writing
• Signed by the client
• Explicit about how costs and expenses will be deducted

Fee Agreement Requirements

Valid contingency fee agreements in Phoenix must:

• Be in writing
• Clearly state the method for determining the fee
• Explain expenses the client will be responsible for
• Specify whether expenses are deducted before or after the contingency fee
• State what happens if the client terminates representation
• Explain the attorney’s lien rights

Benefits of Contingency Fees for Phoenix Accident Victims

The GLG Personal Injury Center highlights several advantages of contingency arrangements:

Alignment of Interests

Contingency fees create a natural alignment between attorney and client interests:

• Attorneys are motivated to maximize recovery
• No incentive to unnecessarily prolong cases
• Focus on quality rather than billing hours
• Motivation to efficiently resolve cases

Risk Sharing

The attorney assumes significant financial risk:

• No recovery means no attorney fees
• Case costs are advanced and at risk
• Substantial time investment without guaranteed payment
• Resources committed regardless of outcome

Access to Justice

Contingency fees democratize the legal system:

• Quality representation regardless of financial status
• Level playing field against insurance companies
• Resources to properly develop cases
• No advantage to defendants with deep pockets

When Contingency Arrangements Make the Most Sense

Contingency fees are particularly valuable in certain scenarios:

Serious Injury Cases

When injuries are significant and damages substantial:

• Higher potential recovery justifies contingency investment
• Complex medical evidence requires expertise
• Long-term damages need proper documentation
• Multiple treatment providers increase complexity

Liability Disputes

When fault is contested:

• Expert investigation becomes crucial
• Technical accident reconstruction may be needed
• Witness testimony must be preserved professionally
• Legal arguments require specialized knowledge

Insurance Company Tactics

When insurers employ challenging tactics:

• Lowball offers need professional countering
• Delay strategies require experienced responses
• Coverage disputes demand legal expertise
• Multiple policies create coordination complexities

Questions to Ask About Contingency Fees

Before signing a contingency fee agreement with a Phoenix attorney, GLG’s Arizona Accident Guide recommends asking:

Fee Structure Questions

• What percentage will you charge?
• Does your percentage increase if we file a lawsuit or go to trial?
• Are there any circumstances where the fee might be reduced?

Cost and Expense Questions

• What case costs do you anticipate?
• Are costs advanced or do I pay them as they arise?
• Are costs deducted before or after the contingency fee is calculated?
• Are there any costs I would be responsible for if we don’t win?

Value-Added Questions

• What services are included in your contingency fee?
• How will you help with medical liens and health insurance reimbursement?
• Will you negotiate medical bills as part of your service?
• Do you provide regular case updates and consultation?

Contingency Fees vs. Alternative Arrangements

While contingency fees dominate personal injury practice in Phoenix, alternatives exist:

Hourly Billing

• Typically $250-$500 per hour for Phoenix injury attorneys
• Client bears all risk regardless of outcome
• May make sense for very small claims or non-injury cases
• Requires substantial upfront retainer

Hybrid Arrangements

• Reduced hourly rate plus smaller contingency percentage
• Might apply in unusual or very complex cases
• Less common in standard car accident claims
• More frequently used in commercial litigation

Flat Fee Services

• Limited scope representation for specific tasks
• Might apply for property damage-only claims
• Not typically available for full injury representation
• Common for traffic ticket defense related to accidents

Net Recovery Considerations

What ultimately matters is your net recovery—the amount you receive after all fees, costs, and liens are paid. Maricopa County Superior Court data suggests that despite paying contingency fees, represented clients typically net significantly more than unrepresented claimants, even after accounting for fees.

Factors affecting net recovery include:

• Attorney’s skill in negotiating medical liens
• Effectiveness in documenting all damage elements
• Ability to identify all potential insurance coverage
• Success in countering comparative negligence arguments

Conclusion

Contingency fee arrangements serve as the backbone of access to justice for Phoenix car accident victims. By removing financial barriers to quality legal representation, they ensure that injured parties can pursue fair compensation without upfront costs during an already challenging time.

When evaluating contingency fee agreements, focus not just on the percentage, but on the attorney’s experience, resources, track record, and ability to maximize your overall recovery. The right attorney working on contingency can often deliver a substantially higher net recovery than you might secure on your own, even after accounting for their fee.

For serious injuries, disputed liability cases, or situations involving uncooperative insurance companies, the investment in contingency representation typically pays significant dividends in both final recovery amount and reduced stress during the claims process.

References

1. Arizona Rules of Professional Conduct, ER 1.5. Fee Arrangements.
2. Arizona State Bar. (2024). Consumer Guide to Attorney Fees.
3. Arizona Supreme Court. (2018). Opinion Regarding Contingent Fees.
4. Maricopa County Superior Court. (2025). Filing Fee Schedule.
5. Arizona Republic. (April 2025). I-10 crash victim receives $575,000 settlement with contingency representation.
6. AZ Family. (March 2025). Pedestrian injury case results in $1.2 million verdict after contingency fee trial.
7. ABC15 Arizona. (February 2025). North Phoenix rideshare accident settlement highlights fee structure benefits.