Does My Lawyer Take a Cut of My PIP or Car Repair Money?

In a standard Florida personal injury case, your lawyer’s contingency fee usually comes only from the injury settlement, the money paid by the at-fault driver’s liability insurer or your own uninsured motorist (UM) coverage. It usually does not come out of your PIP benefits, which typically go straight to your doctors, or your car repair payout, which is handled separately under property damage rules. The exact scope depends on your signed agreement, so always read it and ask before you sign.

Which money does the lawyer’s percentage actually come out of?

The contingency fee typically applies only to your bodily injury recovery, not to PIP payments or car repairs. Imagine you were rear-ended at West 49th Street and Palm Avenue in Hialeah. Your medical bills from Hialeah Hospital are usually paid through your own PIP policy directly by your insurer. That’s bucket one. Bucket two is the $8,000 paid for your totaled sedan, that comes from the other driver’s property damage liability, not their injury coverage. Bucket three is the $75,000 settlement you receive for your broken ribs and lost wages from the at-fault driver’s bodily injury policy or your UM carrier. Typically, only that third bucket is subject to the lawyer’s fee. Under Florida Bar Rule 4-1.5(f)(4)(B), that fee can be no more than 33 1/3 percent of a recovery up to $1 million if settled before an answer is filed or arbitration is demanded, or 40 percent after that through trial. Your signed contract controls everything, always confirm what it covers.

How does PIP work, and why does it usually pay the doctor, not you?

PIP is no-fault insurance required in Florida. It pays 80 percent of your reasonable medical bills and 60 percent of documented lost income, up to $10,000 if a doctor certifies an emergency medical condition, or just $2,500 without that certification [Fla. Stat. § 627.736]. You must see a qualified provider within 14 days of the crash or lose all PIP benefits. Crucially, PIP pays regardless of who caused the crash. In our West 49th Street example, if you have your own Florida auto policy, your insurer sends payments directly to Hialeah Hospital for covered treatment. Because you never receive that money as a lump sum, there’s usually nothing for a contingency fee to attach to. For a pedestrian or cyclist, the order is: your own PIP first; if you don’t have one, a resident relative’s policy; and only if neither exists, the striking vehicle’s PIP, if you are a Florida resident.

Is the car repair claim handled separately from the injury claim?

Yes. Vehicle damage is a fault-based claim outside Florida’s no-fault PIP system. The at-fault driver’s property damage liability coverage pays for your car repairs, not their PIP, and not yours. In the Hialeah crash example, your totaled Honda Civic is a separate negotiation from your injury case. Many Florida law firms handle property damage claims as a courtesy and charge no contingency fee because these claims are straightforward and settled directly with the insurer. But you cannot assume that. Ask your lawyer in writing: “Is the car repair claim included in this agreement? Do you take any fee from that part?” The answer must be in your signed contract before you sign.

Where does the injury settlement money actually go, in order?

When your bodily injury or UM claim settles, the gross amount gets divided before you receive anything. For example, say your case settles for $100,000. First, the attorney takes their fee, $33,333 (33 1/3 percent) if settled early. Next, case costs like court filing fees, medical record copies, and expert reports get paid; those might total $2,500. Then, any medical liens or outstanding bills (for example, a health insurer’s reimbursement claim) get resolved, say $15,000. That leaves you with roughly $49,167. Costs may be deducted before or after the fee, depending on your contract, this must be disclosed upfront. Remember, a UM settlement under [Fla. Stat. § 627.727] counts as bodily injury recovery, so the same fee rules apply.

PIP disputes have different fee rules, what changed after 2023?

If your PIP insurer wrongly denies or underpays your claim, you can sue them under [Fla. Stat. § 627.736]. Florida’s 2023 tort reform law (HB 837) changed the rules on when an insurer must pay an insured’s attorney fees, so whether you can recover attorney fees in a PIP lawsuit can depend on when your policy was issued and the details of the case. Ask the lawyer how fees would work before any PIP suit is filed. Importantly, a PIP lawsuit is legally distinct from your injury claim against the at-fault driver. The fee structure, timing, and risks are different, and may require a separate agreement.

How to read the fee section of your contract before you sign

Before signing any representation agreement in Hialeah, ask these five questions and get written answers:

1. Which claims does this agreement cover, PIP, property damage, bodily injury, or UM?
2. What percentage applies, and does it rise to 40 percent if a lawsuit is filed? (Florida Bar rules allow 33 1/3 percent pre-answer, 40 percent post-answer.)
3. Are case costs deducted before or after the attorney fee is calculated?
4. Do you handle my car repair claim, and is there a fee on it?
5. If I need to sue my PIP insurer separately, is that covered here or under another arrangement?

Florida Bar rules require your lawyer to give you a final closing statement that itemizes every dollar, fees, costs, and disbursements, signed by both of you. If you were hurt in that W 49th Street crash and are sitting across from a lawyer today, these are the five questions to ask before the pen touches the paper.

Frequently asked questions

Does my lawyer take 33 percent of my PIP money?
Usually not. PIP benefits typically go directly to your medical providers, not to you as cash. Since you don’t receive a lump sum, there’s typically no PIP money for a contingency fee to apply to.

Will my lawyer take a cut of what the insurance pays for my car repairs?
Not necessarily. Property damage claims are often handled separately and many firms charge no fee for them. But you must check your signed agreement, it should state clearly whether car repair proceeds are included.

What happens to my settlement money before I get a check?
Your gross settlement is reduced by the attorney’s percentage, then by case costs (like filing fees and records), and then by any medical liens or reimbursements owed. The remainder is your net recovery.

Can I recover pain-and-suffering damages from the other driver, or am I stuck with PIP?
You can pursue pain and suffering from the at-fault driver only if you suffered a permanent injury, significant scarring, or permanent loss of an important bodily function under Florida law. PIP alone does not cover pain and suffering.

What if PIP does not cover all my medical bills after a Hialeah crash?
Unpaid bills may be recovered through your bodily injury claim against the at-fault driver or your UM coverage, if applicable. Health insurance or medical payment coverage (MedPay) might also apply. A lawyer can help identify all available sources.

Related reading: The driver who hit me in Hialeah has no insurance. What now? · The 14-day PIP rule in Florida: what happens if you wait to see a doctor after a Hialeah car accident · How long do I have to file an injury lawsuit in Florida? The two-year rule after HB 837

Hurt in an accident in Hialeah? Call Wolfson & Leon at 305-965-3766 for a free consultation. We speak Spanish, and there is no fee unless we win.