Do you need an attorney after a wreck? Mike Wells: Do you need an attorney for your claim after a wreck?

This column is the third in a series aimed at helping citizens who have been in a motor-vehicle wreck resolve their claim fairly, sometimes without the need to hire an attorney.

But when should you consider hiring an attorney?

Attorneys represent clients with these claims on a contingent fee basis. If you fail to recover on your claim because of your contributing fault (because of North Carolina's challenging 1% contributory negligence rule), you do not owe the attorney a fee, so the attorney takes a risk with you. If you do prevail, the attorney fee is generally one-third of the recovery, and higher if a lawsuit must be filed, since the attorney's work increases significantly.

Do you need an attorney for property damages only?

Example: The insurance company for the at-fault party offers you $6,000 for your totaled vehicle. You feel you have a really clean vehicle, and you are entitled to more. An attorney secures an $8,000 settlement. But you receive, net of your one-third fee, $5,360. So, you receive a settlement of more money, but you net less of what my non-attorney father called your "walking out the door dollars."

Unless the damage is to a much larger vehicle worth considerably more, hiring an attorney on a contingent fee basis is likely not going to net you more after-fee dollars on a routine property-damage claim. That's why this column suggested last time that you ask your regular attorney to provide you some sound advice as a courtesy.

Your attorney's office, after a review of the basic facts, can recommend you ask for a higher settlement amount, based on an objective but more experienced view of your loss. And your attorney should try to accommodate you as a courtesy in these generally limited time-spent situations because it is the right thing to do since you are a client.

If you have a personal injury claim, an insurance company is not going to offer you the full amount of the value of your claim unless you can demonstrate objectively why it is fair for you to receive more. Such detailed information and knowledge is generally beyond the experience of most citizens. (Most claims without an attorney settle for 30% of their value, one study shows.)

A good rule of thumb: If you receive ongoing medical treatment beyond a one-time visit to the ER and your injuries continue to cause you pain and physical limitations, it probably makes sense to consider hiring an attorney.

What does the attorney know that you do not have any reason to know? Your damages involve not only medical bills but potential future medical bills, credibly forecast, as well. You also may have lost wages, future pain and suffering, and all manner of other damages, which your attorney can quantify and document objectively and clearly. You will want to do that, because once you settle your claim, it is a settlement of any and all claims, known or not yet known.

These examples assume you are not at fault in any way. But be mindful the insurance company is going to assert contributory negligence if it can because of North Carolina's all-or-nothing contributory negligence rule. Many cases are going to require you or your attorney, therefore, to fight through this claimed defense, since the 1% bar is so low.

Next time: Why does the insurance company want you to settle your case quickly, even though you have years to make a claim? And what you may not know about the full extent of your legitimate damages early on.

Remember: An informed choice is a smart choice.

Mike Wells is a partner with Wells Law, PLLC in Winston-Salem. Contact him at mike@wellslaw.us or 336-283-8700.