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Guide · Car accidents
No Win No Fee Car Accident Claims
Most car accident claims are handled on a No Win No Fee basis, under a Conditional Fee Agreement. There's nothing to pay upfront on eligible claims, and if your claim doesn't succeed, you don't pay our fees. If it succeeds, a success fee is taken from your compensation, capped by law at 25% of your compensation for pain and suffering and past losses. Your future losses aren't touched.
Worrying about legal costs puts many people off claiming after a car accident. This guide explains how No Win No Fee works for car accident claims, what you pay and when, and what to ask before you sign.
- Upfront cost
- Nothing, on eligible claims
- If your claim doesn't succeed
- You don't pay our fees
- Future losses
- Not affected by the success fee
- Changing your mind
- Usually 14 days to cancel
How does No Win No Fee work?
No Win No Fee is the everyday name for a Conditional Fee Agreement, or CFA. It's a written agreement between you and your solicitor, and our fees depend on the outcome of your claim. CFAs are set by law, under the Courts and Legal Services Act 1990 and the Conditional Fee Agreements Order 2013.
Before you sign, the agreement should make clear:
- What work your solicitor will do
- When a success fee is payable, and how much it is
- What happens if you lose, or decide to stop the claim
- How expenses, such as medical report fees, are dealt with
- Your right to cancel
A good firm will explain every part of the agreement and answer your questions before you commit. See No Win No Fee explained.
What do you pay if you win or lose?
If your claim succeeds
You receive your compensation. Most of your legal costs are usually paid by the other side. A success fee, and any insurance premium, is taken from your compensation, and we'll show you every deduction.
If your claim doesn't succeed
You don't pay our fees. In most personal injury cases, Qualified One-Way Costs Shifting (QOCS) also protects you from paying the other side's costs.
The exceptions
You could still face costs in limited cases, for example if a claim is found to be fundamentally dishonest, or if you don't keep to the terms of your agreement.
How the success fee is capped
- It's capped by lawThe success fee can't be more than 25% of your compensation for pain and suffering and your past financial losses. No agreement can go above this.
- Future losses are protectedCompensation for future losses, such as future lost earnings or treatment, isn't included in the cap, so the success fee can't be taken from it.
- It's agreed in writingThe exact success fee is set out in your agreement before your claim begins.
When the rules changed in 2013 so that success fees came out of compensation, compensation for pain and suffering was increased by 10% for most claims, partly to help offset this.
Legal expenses cover and ATE insurance
Check your existing cover
Your car insurance, home insurance, bank account or trade union may include legal expenses cover that could fund your claim. Tell your solicitor about any policies you have, so they can check whether it's suitable.
After the Event (ATE) insurance
ATE insurance is taken out after the accident. It mainly covers expenses, such as medical and expert report fees, and gives extra protection against costs. The premium is usually only payable if you win, and it's taken from your compensation.
Smaller whiplash claims and when a solicitor helps
If you're an adult driver or passenger and your injuries are worth £5,000 or less, your claim will usually go through the government's Official Injury Claim service, which is designed so you can claim without a solicitor. The legal costs that can be recovered from the other side in these claims are very limited, so ask any firm exactly how its fees would work.
A solicitor is likely to make the most difference where:
- The other driver or their insurer denies blame
- Your injuries are serious, or you have other injuries as well as whiplash
- You've lost significant earnings or face ongoing costs
- You're struggling psychologically after the accident
- The insurer has made an offer you're unsure about
Questions to ask before you sign
About your claim
- What are my chances, and why?
- How long is it likely to take?
- Who will handle it day to day?
About the costs
- What is the exact success fee?
- Will I need ATE insurance, and what does it cost?
- When could I owe anything if I lose?
About the firm
- Are you regulated by the Solicitors Regulation Authority?
- How will you keep me updated?
- What happens if I want to cancel?
A good firm will answer these clearly, in writing. Injuries Direct is a trading name of NJS Law Limited, authorised and regulated by the Solicitors Regulation Authority (SRA number 8006550).
No Win No Fee car accident claims: FAQs
How does No Win No Fee work for a car accident claim?
Your claim is funded through a Conditional Fee Agreement. There's nothing to pay upfront on eligible claims, and if your claim doesn't succeed, you don't pay our fees. If it succeeds, a success fee is taken from your compensation, capped by law at 25% of your compensation for pain and suffering and past losses.
What do I pay if I lose my car accident claim?
You don't pay our fees. In most personal injury cases, Qualified One-Way Costs Shifting also protects you from paying the other side's costs. You could still face costs in limited cases, for example if a claim is found to be fundamentally dishonest or you don't keep to the terms of your agreement.
How much is the success fee?
It's agreed in writing before your claim starts, and it can't be more than 25% of your compensation for pain and suffering and your past financial losses. Compensation for future losses isn't included, so the success fee can't be taken from it.
What is ATE insurance and do I need it?
After the Event insurance is taken out after the accident. It mainly covers expenses, such as medical report fees, and gives extra protection against costs. Not every claim needs it. We'll tell you whether yours does, and the premium is usually only payable if you win.
Can I use the legal expenses cover on my car insurance?
Possibly. Many car and home insurance policies include legal expenses cover. Check your policy documents and tell your solicitor about any cover you have, so they can check whether it's suitable for your claim.
Can I cancel a No Win No Fee agreement?
Yes. If you sign the agreement away from our offices, for example online or by post, you usually have 14 days to cancel without charge. If you end the agreement later, you may have to pay some costs, as set out in the agreement.
Injured in a car accident?
Talk to our team for free, with no obligation. We'll give you an honest view of your claim and explain exactly how No Win No Fee would work for you. Eligible claims are handled on a No Win No Fee basis.