What percentage does a personal injury attorney take in New Mexico?

How Much Do Personal Injury Attorneys Charge?

If you’ve been injured in an accident and are considering hiring a personal injury attorney, one of your first questions is probably, “How much will it cost?” Many people worry that hiring a lawyer will be too expensive, but the good news is that most personal injury attorneys work on a contingency fee basis. That means you don’t pay anything upfront, and the lawyer only gets paid if they win your case.

In this blog, we’ll break down the different types of fees personal injury attorneys charge, explain what percentage they take, and help you understand what to expect when working with an attorney.
What Is a Contingency Fee?

Most personal injury lawyers work on a contingency fee basis. This means that instead of charging you an hourly rate or a flat fee, they take a percentage of the money they recover for you. If they don’t win your case, you don’t owe them anything. Thats how we do it at Hudson Injury Law, but you should make sure to double check your agreement before you commit!

Contingency fees are common in personal injury cases because they allow injured people to get legal help without worrying about upfront costs. This also encourages attorneys to fight for the best possible settlement or verdict since their payment depends on the outcome.

What Percentage Do Personal Injury Attorneys Charge?

The percentage a personal injury lawyer takes varies, but the most common ranges are:

• 33% to 40% (One-Third Rule) – This is the most standard rate. Many personal injury attorneys charge 33.3% (one-third) if the case settles before a lawsuit is filed. If the case goes to court, the percentage may increase to 40% because of the additional time and work involved.

• Attorneys may charge a higher percentage in specific cases like medical malpractice. I have seen higher rates charged in the realm of 45% for car accident matters too. Be aware of what you are signing up for. At the same time, it is not uncommon for fees to increase in percentage closer to trial.

How Contingency Fees Work in Real Life

Let’s say you settle a car accident case for $100,000 with an attorney who charges 33.3%. Their fee would be:

$100,000 × 33.3% = $33,300

That means you would receive $66,700 (before any other case expenses).

If the case goes to trial and the lawyer’s fee increases to 40%, then:

$100,000 × 40% = $40,000

You would receive $60,000 (before expenses the attorney incurs and gross receipts taxes on the fees in New Mexico. Those expenses can include your medical bills/liens).

Are There Any Other Costs?

In addition to attorney fees, there are other costs involved in a personal injury case. These can include:

• Court filing fees

• Expert witness fees

• Medical record requests

• Deposition costs

• Investigation costs

Some lawyers cover these costs upfront and get reimbursed when the case settles. Others may ask clients to pay for them as the case moves forward. Be sure to ask your attorney how these expenses are handled.

What Happens If You Lose Your Case?

Since most personal injury lawyers work on contingency, you won’t owe any attorney fees if you don’t win your case. However, depending on your agreement, you may still be responsible for certain expenses, like court filing fees. You need to make sure you are reading your agreement!
Is Hiring a Personal Injury Attorney Worth It?

Studies show that people who hire personal injury attorneys usually get much larger settlements than those who try to handle claims on their own. They generally get 2 to 5 more times than folks who don’t have an attorney. Even after paying attorney fees, clients often walk away with more money than they would have without legal help. I see and make it happen all the time!

Personal injury attorneys know how to:

• Negotiate with insurance companies

• Gather strong evidence

• Calculate all possible damages (medical bills, lost wages, pain and suffering, etc.)

• Take cases to trial if necessary

Hiring an attorney can reduce stress and improve your chances of getting fair compensation.

If you’re injured in an accident and need legal help, don’t let the fear of costs stop you from hiring a lawyer. Most personal injury attorneys work on contingency, meaning they only get paid if you win. The typical fee is 33% to 40%, but it can vary based on the complexity of the case.

Before signing any agreement, make sure you understand the fee structure and any potential case costs. A good attorney will explain everything clearly and help you feel confident in your decision.

If you have questions about hiring a personal injury lawyer, don’t hesitate to reach out for a free consultation (505-416-4150).