Contingency car accident lawyers do not charge a fixed amount of legal fees for the services rendered by them. In such a contract the petitioner agrees that the lawyer's fee will be determined by the amount of settlement awarded to the petitioner. The obvious clause in this contract is that the case should be won in the favor of the petitioner. If the petitioner does not win the case, the lawyer will receive no fee. In case of a car accident, a person may file a lawsuit against the offending party for claiming compensation. This may be done in spite of not having adequate resources to pay for the same. In such a case many lawyers do consider working on contingency basis. However, many people falsely tend to believe that if they lose the case they will not have to pay anything. This is not completely true. Though it is a fact that they may not have to pay the attorney's fee, they are liable to reimburse the expenses occurred by the attorney while pursuing their case. These fees might include medical reports, analytical services, proficient witnesses, judicial costs and court reporter fees. Irrespective of winning or losing, the client will be responsible for the expenses or cost of bringing the claim to the court.

When the contract to pay a lawyer in case of a car accident is based on contingency, the fee is always set at a pre-arranged percentage of whatever the compensation amount might be. This may sum up to much more than the normal fee the lawyer would have been entitled to. However, it is seen that there are many advantages to paying on contingency.

If a person loses the claim, the question of paying the lawyer's fees does not arise at all. If the person's compensation is received in arrears, the lawyer's fees can also be paid accordingly. Paying on contingency can enable a person to hire the services of an expensive attorney even though he may not be in a position to pay for it. The attorney also tends to work harder since his fee is at stake. Before getting into any agreement all the factors and clauses of the contract should be studied in great detail.