If you have been injured in an accident and you are thinking about making a claim for compensation, then establishing the cost to do so is important. To do this, you should contact lawyers when injured to get advice relevant to your circumstances.

No win, No fee

The good news with regards to personal injuries is that they can be processed on a ‘no win, no fee’ basis. ‘No win, no fee was’ introduced into courts in England and Wales in 1995. It was introduced to level the legal playing field for everyone. With ‘no win, no fee’, people can get high quality legal representation without having to worry about legal fees. Under an agreement of this type, the claimant has no fees to pay upfront nor during the accident claims process, nor any of their own lawyer’s fees to pay should their claim be unsuccessful.

So how do lawyers get paid?

Under ‘no win, no fee’, lawyers only get paid if their case wins.

Providing that they do win their case, a lawyer can recover their costs in one of two ways:

1. They can recover their costs from the other side: This method is the preferred method, because it means the claimant can keep 100 per cent of their compensation. This is a common fee recovery method in high-value claims;
2. They can take a percentage of the awarded compensation as payment for their services: By law, this percentage can be no more than 25 per cent of the total settlement awarded. So if £5,000 is awarded, a lawyer can take a maximum £1,250.

So the only way that a claim can hit your back pocket is indirectly, providing that your lawyer opts for option 2 discussed above. It is also important to remember that lawyers do not have to take 25 per cent. They can take less. However, the percentage they take should be fair and proportionate to the work they have carried out. If your lawyer has worked tirelessly on a complex claim, then they will likely take the maximum percentage.

How big of a percentage will your lawyer take? You should clarify this with your lawyer before you agree to anything, so that you are not in the situation of receiving less compensation than you thought you would receive. It is also important to remember that it is not always possible for lawyers to recover their costs from the other side. Sometimes, it is necessary for them to take a percentage of your compensation as payment.

The vast majority of case accident claims are processed on a ‘no win, no fee’ basis because they offer protection for the claimant. However, it is important to consider that you may be billed by the other side if your claim loses.