# How much do lawyers take from car accident settlement?

URL: https://mywreckcheck.com/motor-vehicle-accident/how-much-do-lawyers-take-from-car-accident-settlement
Updated: 2026-10-14
Review: Reviewed by My Wreck Check Editorial Team, editorial review: primary sources checked and independently fact-checked

How much do lawyers take from car accident settlement money? The fee math, how costs change it, where the law caps the percentage, and what to ask first.

How much do lawyers take from car accident settlement money? They take the percentage written in your contingency fee agreement, plus case costs, and those costs can come out before or after the percentage is worked out. In California, the contract for a claim like this has to state that the fee "is not set by law but is negotiable between attorney and client" ([Business and Professions Code 6147](https://codes.findlaw.com/ca/business-and-professions-code/bpc-sect-6147/)). Some claims do have caps, including claims against the federal government.

- The fee is whatever the signed agreement says. In Texas a contingent fee contract must be in writing and signed by the attorney and the client.
- California requires the contract to state the rate, how costs affect the fee and your recovery, and that the fee is negotiable. If it leaves any of that out, you can choose to void it.
- Whether costs come out before or after the percentage changes what you keep, even when the percentage stays the same.
- Federal law caps fees on Federal Tort Claims Act claims at 20 percent of an agency-level settlement and 25 percent of a court judgment or a settlement under section 2677.
- Medicare can be repaid out of the same settlement, and CMS asks for the procurement costs and fees you paid.

## How a contingency fee works

On a contingency fee, the lawyer is paid a share of what the claim recovers. The contract sets the share. The [pillar guide on how a car accident claim works](https://mywreckcheck.com/motor-vehicle-accident/car-accident-claim) covers the claim itself; this page covers what comes off the top once there is a number.

Some state laws regulate the fee paperwork. Texas Government Code [section 82.065](https://codes.findlaw.com/tx/government-code/gov-t-sect-82-065/) says that "A contingent fee contract for legal services must be in writing and signed by the attorney and client."

California goes further. Under [section 6147](https://codes.findlaw.com/ca/business-and-professions-code/bpc-sect-6147/), the lawyer has to give the client a duplicate copy of the contract, signed by both, and the contract has to include:

- the contingency fee rate the lawyer and client agreed on;
- how disbursements and costs affect the fee and the client's recovery;
- whether the client could owe the lawyer anything for related matters the contract doesn't cover;
- a statement that the fee is not set by law but is negotiable between attorney and client.

If the contract misses any of these, section 6147 makes it voidable at the client's option, and the lawyer is then entitled to a reasonable fee instead.

## How much do lawyers take from car accident settlement payouts? The math

The percentage is only half of it. The other half is the order: are case costs taken off before the percentage is applied, or after?

Here is an illustration with made-up numbers. It is not a typical rate or a typical claim. Say a claim settles for $30,000, the agreement says one-third, and the case ran up $3,000 in costs.

| | Fee on the gross amount | Fee after costs |
| --- | --- | --- |
| Settlement | $30,000 | $30,000 |
| Costs taken off first | No | $3,000 |
| Amount the one-third applies to | $30,000 | $27,000 |
| Lawyer's fee | $10,000 | $9,000 |
| Costs repaid to the firm | $3,000 | $3,000 (already deducted) |
| Left before any repayments | $17,000 | $18,000 |

The percentage and the settlement didn't change, and you keep $1,000 more in one version. That gap is why California makes the contract explain how costs affect both the fee and what the client gets. The [offer check](https://mywreckcheck.com/motor-vehicle-accident/tools/offer-check) and the claim value estimator let you run your own figures before you compare offers.

Tool: [Claim value estimator](https://mywreckcheck.com/motor-vehicle-accident/tools/claim-value-estimator). A low, typical and high range for your claim from your own bills, lost pay and mileage, adjusted for your state's fault rule.

California's medical negligence statute shows one way a law can fix the order. In [section 6146](https://codes.findlaw.com/ca/business-and-professions-code/bpc-sect-6146/), the amount "recovered" means the net sum after deducting disbursements or costs incurred in prosecuting or settling the claim. The plaintiff's medical care costs and the lawyer's office overhead are not deductible for that purpose.

## Where the law caps the percentage

The Texas and California rules above govern the contract, not the rate, for a claim against another driver. A few kinds of claims do have a capped percentage.

### Claims against the federal government

If a federal employee acting within the scope of their job caused the injury, the claim runs against the United States under [28 U.S.C. 1346(b)](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partIV-chap85-sec1346.htm) and the [Federal Tort Claims Act](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partVI-chap171-sec2671.htm). For those claims, [28 U.S.C. 2678](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partVI-chap171-sec2678.htm) caps the lawyer's fee:

| Stage | Federal fee cap |
| --- | --- |
| Award, compromise or settlement by the agency under section 2672 | 20 percent |
| Court judgment under section 1346(b), or settlement under section 2677 | 25 percent |

A lawyer who charges more faces a fine of up to $2,000, up to a year in prison, or both. These claims also start differently: under [28 U.S.C. 2675](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partVI-chap171-sec2675.htm), the claim generally has to be presented to the federal agency first, and if the agency hasn't made a final decision within six months, the claimant may treat that as a denial.

### Medical negligence claims in California

Section 6146 caps fees on professional negligence claims against a health care provider at 25 percent of a settlement reached before a civil complaint or arbitration demand is filed, and 33 percent after, though if the case is tried or arbitrated the lawyer may ask the court or arbitrator for a higher fee for good cause. A claim against another driver isn't that kind of claim; for it, section 6147 instead requires the statement that the fee "is not set by law but is negotiable."

It's worth asking any lawyer you talk to whether any rule caps the fee where you live.

## Who else is paid from the same settlement

The lawyer's fee and the costs aren't the only deductions. If Medicare paid crash-related bills, it expects to be repaid from the settlement, and CMS asks about fees and costs as part of that process.

On its [conditional payment page](https://www.cms.gov/medicare/coordination-benefits-recovery/attorney-services/conditional-payment-information), CMS lists "Procurement costs and fees paid by the beneficiary" among the information to send its recovery contractor. If nobody responds to the conditional payment notice within 30 calendar days, CMS says, a demand letter goes out automatically, seeking repayment "without a proportionate reduction for fees or costs."

The [guide to car accident settlements](https://mywreckcheck.com/motor-vehicle-accident/car-accident-settlement) covers the other parties who can claim part of the money, and how the IRS treats each part.

## Questions to ask before you sign a fee agreement

A fee agreement is a contract, so it's easier to understand before you sign than after. These questions start from what California's section 6147 requires a contract to cover, and they're worth asking in any state:

- What percentage do you take, and does it change if a lawsuit is filed or the case goes to trial?
- Are costs taken out before or after the percentage is calculated?
- If there is no recovery, who pays the costs?
- Could I owe you anything for related matters this contract doesn't cover?
- Does any rule in this state cap the fee for a claim like mine?
- Can I have a copy of the agreement signed by both of us?

Whether a lawyer is worth the percentage at all depends on the claim. The guide [do you actually need a lawyer after a crash?](https://mywreckcheck.com/motor-vehicle-accident/do-you-actually-need-a-lawyer-after-a-crash) looks at when the trade usually makes sense and when it doesn't.

Tool: [Offer check](https://mywreckcheck.com/motor-vehicle-accident/tools/offer-check). Put the adjuster's offer next to your own numbers and see what it leaves out.

These are the realistic ways to handle a claim, starting with the one that asks least of you.

**Work out what it is worth first.** Good when: Always, and especially before you answer an adjuster. Watch out: A range is a starting point for a conversation, not a prediction of what you will get.

**Deal with the insurer yourself.** Good when: Nobody was hurt, or you were checked out and the bills are small and finished. Watch out: Once you sign a release the claim is closed for good, even if you feel worse later.

**Use the free help your state already offers.** Good when: You want a lawyer's read but cannot pay, or you only need one question answered. Watch out: Legal aid has income limits and a bar referral service usually charges a small consultation fee.

**Get a free case review from an injury firm.** Good when: You are still treating, you missed real work, fault is disputed, or a commercial vehicle was involved. Watch out: Injury firms work on contingency and take a percentage, commonly a third, plus case costs. Ask for the number in writing before you sign.

This site gives no legal advice. For a decision about your own claim and fee agreement, a licensed attorney in your state is the right person to ask.

**Read the costs clause, not just the percentage**
Two agreements with the same percentage can leave you with different amounts, depending on whether costs come out before or after the fee. Ask for both in writing.

## Bottom line

How much do lawyers take from car accident settlement money? The percentage in the agreement you sign, plus costs, in the order the agreement sets. California says outright that the fee is not set by law but is negotiable. Federal Tort Claims Act claims are capped at 20 or 25 percent. Run the fee math on your own numbers and read the costs clause before you sign anything.

Start the Wreck Check: https://mywreckcheck.com/check

## Common questions

### Is there a standard percentage lawyers take from a car accident settlement?

Not in the laws this page covers. For a claim against another driver, California requires the contingency fee contract to state that the fee is not set by law but is negotiable between attorney and client, so the percentage is whatever the signed agreement says.

### Do case costs come out before or after the lawyer's percentage?

Either, depending on the agreement. California requires the contract to explain how disbursements and costs will affect the contingency fee and the client's recovery, and the order changes what you keep.

### Does a contingency fee agreement have to be in writing?

In Texas, yes: a contingent fee contract for legal services must be in writing and signed by the attorney and client. In California, the client must get a duplicate copy of the contract signed by both.

### Is there a cap on lawyer fees if a government vehicle hit me?

For claims against the United States under the Federal Tort Claims Act, yes. Federal law caps the fee at 20 percent of an agency-level award, compromise or settlement and 25 percent of a court judgment or a settlement under section 2677.

### Does Medicare's repayment get reduced for my lawyer's fee?

CMS asks for the procurement costs and fees paid by the beneficiary, and says that if no response to its conditional payment notice arrives within 30 calendar days, it issues a demand for repayment without a proportionate reduction for fees or costs.

## Sources

- [Texas Government Code 82.065: Contingent fee contract for legal services](https://codes.findlaw.com/tx/government-code/gov-t-sect-82-065/)
- [California Business and Professions Code 6147: Contingency fee contracts](https://codes.findlaw.com/ca/business-and-professions-code/bpc-sect-6147/)
- [California Business and Professions Code 6146: Contingency fee limits in professional negligence claims](https://codes.findlaw.com/ca/business-and-professions-code/bpc-sect-6146/)
- [28 U.S.C. 2678: Attorney fees; penalty (GovInfo)](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partVI-chap171-sec2678.htm)
- [28 U.S.C. 2671: Definitions (Federal Tort Claims Act, with statutory notes)](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partVI-chap171-sec2671.htm)
- [28 U.S.C. 1346: United States as defendant (GovInfo)](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partIV-chap85-sec1346.htm)
- [28 U.S.C. 2675: Disposition by federal agency as prerequisite (GovInfo)](https://www.govinfo.gov/content/pkg/USCODE-2023-title28/html/USCODE-2023-title28-partVI-chap171-sec2675.htm)
- [CMS: Conditional payment information (attorney services)](https://www.cms.gov/medicare/coordination-benefits-recovery/attorney-services/conditional-payment-information)