How do attorneys get paid on total loss and diminished value claims?
By Jeff Zigman, TRUEclaims · Updated
The short answer
A common structure is a third of the increase over the insurer's offer on a total loss, and a third of the settlement on diminished value. The firm fronts the costs (about $500–$600 per total loss, $200–$350 per diminished value claim) and gets them back from the settlement.
With True Claims, the average total-loss increase has been about $7,500, so the firm's third on an average total loss has been about $2,500 (past results, not a forecast).
Check your state bar's rules on contingency fee agreements.
Take the property-damage-only calls nearby firms turn away
More questions
- Can a personal injury firm take property-damage-only claims?
- What should an injury firm do with property-damage-only calls?
- How do I get referrals from other law firms?
- Can a law firm pay another law firm for referrals?
- What is the Appraisal Clause on a total loss?
- How does an insurer calculate a total loss value?
General information, not legal advice. Figures are past True Claims results or illustrative, as labelled. TRUEclaims is not a law firm.