How to Save Money on an Auto Accident Lawsuit
The majority of auto accident cases settle out of court and rely on insurance money. However, the legal costs associated with an accident can quickly and easily become the major expense of the case. It is important to know ways to save on these legal costs or avoid most of them altogether.
Consider the Size of Your Claim
How much you need to worry about legal costs is mostly dependent on the size of your claim and the complexity of your accident.
For extremely severe accidents, with settlement amounts in the hundreds of thousands or millions of dollars, legal costs are almost an afterthought. In most small cases, legal costs can easily take away the majority of the settlement money for the plaintiff or cost the defendant amounts beyond their insurance coverage.
Claims worth $50,000 or less may have over half that amount taken by legal costs. This is not just the percentage your attorney will take as his or her cut.
Legal proceedings get expensive very quickly. Filings cost hundreds of dollars, depositions cost hundreds or thousands of dollars.
Hiring experts for testimony is one of the largest expenses, easily going above $5000 or $10,000. These are fees your attorney must pay for your case, not the profit they are making, and they will ensure this expense is recouped.
It is important to discuss with your attorney how much your claim is worth and what exactly will be needed to make your case. Sometimes litigation expense cannot be planned.
Your attorney may need to take action based on the motions of the other party. If they don’t, you could lose the case altogether. It becomes a careful chess game in which every move is extremely expensive, so you don’t want to make any wasted moves.
A smart attorney will be conservative here, but you should keep track yourself. Some attorneys can rack up a lot of fees that aren’t really needed.
Don’t hesitate to reign your attorney in when necessary or force them to fully explain their decisions. It’s your case, and you have a right to keep control of it.
Small Claims and Mediation
If your case is small or not very complex you can cut a massive amount of legal fees by avoiding litigation altogether.
Small cases may be handled in small claims court, including minor car accidents. There are no legal fees because attorneys are not allowed in small claims court. You may still want to consult with an attorney to prepare, but this is much less expensive.
Rather than taking the case to court, you can resolve disputes out of court through mediation. Attorneys are still present for mediation, but it is less formal than court and less expensive.
The goal is to help the parties reach a fair settlement and conclude the case quickly and at low cost. It is a happy medium between just accepting whatever settlement offer and facing the litigation process.
Consider When to Settle
The greatest power you have is determining when to settle. A low settlement offer is usually provided by the defendant’s insurer very quickly.
Refusing this offer results in higher and higher offers, but these offers are offset by more resistance and more need to negotiate or make a legal case. At some point, you may simply wish to conclude the case and take the offer that’s on the table.
A good car accident attorney will advise you on when to fold and when to keep fighting, but the call is ultimately yours to make.
Even if your attorney wants to keep pushing, they are beholden to your decision and cannot force a case to continue without your approval.
Every car accident case is unique, and there is no single strategy for reducing costs. Consider first if you even need an attorney for your case.
If you do, then consider just how much legal service you need and keep tight control over the costs of your case. Every expense means less money to you at the end, so don’t hesitate to get involved and stay involved in your case.
Category: Law
