LEGAL GUIDE · CAR ACCIDENT CLAIMS
No Win No Fee: The law limits our success fee to 25% of the compensation for pain, suffering and loss of amenity and for past financial losses, after any state benefits are repaid. Compensation for future losses is not counted. If you win, our success fee is deducted from your compensation. It is a percentage of our basic charges, and the law limits it as set out above. Any After the Event insurance premium is payable only if you win, and is never charged upfront. Your letter of engagement sets out exactly what you will pay for your type of claim, and we explain it before you sign. If you lose, you pay us nothing. This applies as long as you keep to your responsibilities under the agreement. You may have to pay costs if you end your claim early, fail to beat an offer the other side made, or a court finds your claim dishonest or exaggerated; where we have arranged After the Event insurance, it covers some of these costs if you keep to the policy's terms. See exactly what you pay.
How Conditional Fee Agreements work for car accident claims, what you pay if you win or lose, ATE insurance, success fees and everything you need to know before you sign.
Direct Answer
A No Win No Fee car accident claim is funded through a Conditional Fee Agreement (CFA). If you win, a legally capped success fee is deducted from your compensation — agreed in writing before your claim begins. Where we arrange After the Event insurance, it covers the other side's costs and your disbursements if you lose, on the policy's terms. You pay nothing upfront, and if you lose you pay us nothing.
The cost of legal representation is one of the most common reasons people hesitate before making a No Win No Fee car accident claim. The fear of a large solicitor’s bill — particularly if the claim is unsuccessful — stops many people from pursuing compensation they are fully entitled to. No Win No Fee funding exists precisely to remove that barrier. This guide explains exactly how it works forcar accident claims in the UK — what you will and will not pay, how the CFA protects you, and what to look for before you sign anything.
What Is No Win No Fee?
No Win No Fee is the common name for a funding arrangement in which your solicitor agrees to represent you without charging any upfront legal fees. If your claim is unsuccessful, your solicitor writes off their fees and you pay nothing. If you win, our success fee is deducted from your compensation. It is a percentage of our basic charges, and the law limits it as set out above.
The formal legal name is a Conditional Fee Agreement (CFA) — the fee is conditional on the outcome of your claim. CFAs are governed by the Courts and Legal Services Act 1990, as amended by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), and the Conditional Fee Agreements Order 2013.
How widespread is No Win No Fee? It is the standard and most accessible funding model for this type of claim.
What Is a Conditional Fee Agreement (CFA)?
A Conditional Fee Agreement is a written, legally binding contract between you and your solicitor. It must be put in place before your solicitor begins work on your claim, and it must clearly set out:
- The work your solicitor will carry out on your behalf
- The circumstances in which the success fee becomes payable
- The success fee percentage and how it is calculated
- What happens if you lose, withdraw from, or breach the agreement
- How disbursements — such as expert report fees and court fees — are handled
- Your 14-day right to cancel without penalty
The CFA is not a casual arrangement. It is a formal legal document and you should read it carefully before signing. A reputable firm will take the time to explain every term and welcome any questions you have before you commit.
Because our fee depends on winning, we are paid only if your claim succeeds.
What You Pay If You Win — and If You Lose
If Your Car Accident Claim Succeeds
- You receive your compensation award
- A legally capped success fee is deducted from your general damages and past losses
- The ATE insurance premium is typically deducted from your compensation
- The rest of your compensation, after the deductions in your letter of engagement, is paid to you.
If Your Car Accident Claim Is Unsuccessful
- You pay nothing to your solicitor — their fees are written off under the CFA
- ATE insurance covers the defendant’s legal costs and any disbursements
- You are not left with any legal bill, provided you have complied with the CFA terms
- No success fee is payable — it only arises if you win
Important exception
The protection from costs if you lose is conditional on you complying with the terms of your CFA throughout the claim. If you fail to attend a medical examination, deliberately mislead your solicitor, or reject a reasonable settlement offer against your solicitor’s advice, you may become liable for some costs. Your solicitor must explain these terms clearly before you sign.
The Success Fee — What It Is and How It Is Capped
The success fee is the additional amount your solicitor charges on top of their basic costs when your claim succeeds. It reflects the financial risk they took by acting for you with no guarantee of payment. In road traffic accident claims, the success fee is capped by law on your:
- General damages — compensation for pain, suffering and loss of amenity
- Past financial losses — special damages already incurred at the time of settlement
It does not apply to future financial losses. This is a significant protection — particularly in serious injury claims where future losses can substantially exceed the general damages award.
The key protection
The cap on success fees is set by the Conditional Fee Agreements Order 2013 and cannot be overridden by any individual agreement. If any agreement appears to go beyond this, do not sign it without seeking independent advice.
After the Event (ATE) insurance
ATE insurance is a policy taken out after the car accident has occurred — hence “after the event.” It protects you against the financial risk of having to pay the defendant’s legal costs and disbursements if your claim is unsuccessful. In a car accident claim, this can include:
- The defendant’s solicitor’s costs if your claim fails at court
- Expert report fees — medical experts and accident reconstruction specialists can be expensive
- Court fees if proceedings are issued
- Barrister fees if your claim goes to a hearing
- Any other disbursements incurred during the claim
What ATE insurance costs
If your claim succeeds, the ATE premium is typically deducted from your compensation at the conclusion of the case. Where we arrange After the Event insurance, it covers the other side's costs and your disbursements if you lose, on the policy's terms. The premium varies depending on the complexity and value of your claim — your solicitor will arrange it on your behalf and explain the expected premium before the policy is taken out.
Do You Already Have Legal Expenses Cover?
Before ATE insurance is arranged, it is worth checking whether you already have legal expenses cover that could fund your car accident claim. This is often referred to as Before the Event (BTE) insurance and is frequently included — sometimes without the policyholder’s knowledge — as part of:
- Your motor insurance policy — many policies include legal expenses cover as a standard or optional extra
- Your home contents insurance — often includes legal expenses cover for personal injury claims
- A bank account benefit — packaged bank accounts frequently include legal expenses insurance among their benefits
- Trade union membership — some unions provide legal support for personal injury claims on behalf of members
If you have existing BTE cover, it may be possible to fund your claim through it — which can reduce or eliminate the deduction from your compensation. Tell your solicitor about any existing policies at your first consultation so they can assess whether BTE cover is available and appropriate for your claim.
When Do You Need a No Win No Fee Solicitor for a Car Accident Claim?
For straightforward, low-value whiplash claims worth under £5,000, the Official Injury Claim (OIC) portal allows unrepresented claimants to proceed without a solicitor at no cost. However, there are many situations where No Win No Fee solicitor representation makes a significant difference to the outcome of your claim.
Disputed Liability
The other driver or their insurer is denying responsibility for the accident. A solicitor gathers evidence, instructs experts and argues the case on your behalf.
Serious or Complex Injuries
Where your injuries are significant — head injuries, spinal injuries, multiple fractures or long-term disability — a solicitor ensures all heads of loss are properly identified and maximised.
Significant Financial Losses
Where you have lost substantial earnings, required expensive treatment or face ongoing financial consequences, a solicitor ensures your special damages are fully evidenced and recovered.
Low Insurer Offer
An insurer has made an offer that you suspect undervalues your claim. A solicitor can assess whether the offer is fair and negotiate on your behalf.
Mixed or Additional Injuries
Where you suffered injuries in addition to whiplash — such as a knee injury, shoulder injury or psychological harm — a solicitor ensures each injury is correctly identified and valued.
Psychological Harm
PTSD, driving phobia, anxiety and depression following a car accident are fully compensable but frequently overlooked by unrepresented claimants and initial insurer assessments.
Will My Car Accident Claim Be Accepted on No Win No Fee?
Solicitors only offer a CFA if they assess your claim has a reasonable prospect of success — typically meaning prospects of 51% or higher. Because they act without any certainty of payment, they take on real financial risk in accepting your case.
To assess your claim, a solicitor will consider whether:
- Another road user owed you a duty of care — universal for all car accident victims
- That duty was breached through negligent, careless or reckless driving
- The breach caused or contributed to your injury
- Your injuries are sufficiently serious to justify the cost of the claim
- Your claim falls within the three-year limitation period under the Limitation Act 1980
- There is a realistic prospect of recovering compensation that exceeds the cost of pursuing the claim
Not sure if your claim qualifies?
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The No Win No Fee Car Accident Claim Process — Step by Step
1. Free Initial Consultation
You speak with a specialist road traffic accident solicitor at no cost and with no obligation. They assess your claim, explain your options and answer your questions. This is your opportunity to decide whether the firm is the right fit for you.
2. Case Assessment and CFA Offered
If the solicitor assesses your claim as having good prospects, they offer you a Conditional Fee Agreement. They explain every term — including the success fee, ATE insurance and what happens if the claim fails — before you sign. You have 14 days to cancel without penalty.
3. ATE Insurance Arranged
ATE insurance is put in place to protect you against the defendant’s costs if the claim is unsuccessful. Your solicitor arranges this on your behalf. If you have existing legal expenses cover, your solicitor will assess whether it is suitable before arranging ATE.
4. Evidence Gathered
Your solicitor obtains your medical records, arranges an independent medical examination, and compiles all evidence to support your claim — including any CCTV or dashcam footage, witness statements, police reports and financial documentation.
5. Claim Submitted to the Insurer
Your solicitor formally notifies the defendant’s insurer of your claim. For low-value whiplash claims, this may go through the OIC portal. For higher-value or more complex claims, the Pre-Action Protocol for Personal Injury applies, giving the insurer time to investigate and respond.
6. Negotiation and Settlement
We build your case with evidence to maximise your compensation. Most car accident claims settle through negotiation without court proceedings. Your solicitor will advise you clearly on whether any offer made is fair and reasonable.
7. Compensation Paid
Once a settlement is agreed, your compensation is paid. The success fee and ATE premium are deducted from the relevant portion of your award. Your solicitor provides a clear breakdown of all deductions and the remaining balance is paid directly to you.
Questions to Ask Before Signing a No Win No Fee Agreement
Ask your solicitor these questions before signing any CFA
- What is your assessment of my prospects of success and why?
- What is the exact success fee and what portion of my compensation does it apply to?
- What happens to disbursements if my claim is unsuccessful?
- What is the estimated ATE insurance premium and when is it payable?
- Are there any circumstances in which I might owe costs even if I lose?
- What are the specific circumstances in which I could be in breach of the CFA?
- What is your estimate of how long my claim will take?
- Who will be handling my case day to day and how will you communicate with me?
- Are you authorised and regulated by the Solicitors Regulation Authority?
A reputable, specialist firm will answer all of these questions clearly, in writing, and without hesitation. If a firm is evasive, rushes you through the agreement or discourages questions, treat this as a warning sign.
Can I Cancel a No Win No Fee Agreement?
Yes. You can cancel within 14 days of signing, free of charge.
After the 14-day period, cancellation may result in liability for costs already incurred — such as disbursements paid to medical experts. The exact position depends on the specific CFA terms, which your solicitor must explain clearly before you sign. If you are considering cancelling, speak to your solicitor first — they may be able to address your concerns without the need to terminate the agreement entirely.
Why Make Your No Win No Fee Car Accident Claim with NJS Law?
At NJS Law, all car accident claims are accepted on a No Win No Fee basis. You will never be asked to pay anything upfront, and if your claim is unsuccessful, you pay nothing. Our specialist road traffic accident team will:
- Assess your claim honestly and in full during a free initial consultation
- Explain the CFA terms clearly — including the success fee, ATE insurance and your protections — before asking you to sign anything
- Check whether existing legal expenses cover is available before arranging ATE insurance
- Handle all evidence gathering — medical records, expert reports, CCTV and dashcam footage, witness statements and financial documentation
- Identify all heads of loss — including psychological harm and future losses that unrepresented claimants frequently miss
- We build your case with evidence to maximise your compensation.
- Only pursue court proceedings where necessary and where prospects justify it
- Keep you informed at every stage of your claim
We are authorised and regulated by the Solicitors Regulation Authority. For further detail on how No Win No Fee agreements work in personal injury law, see our full guide to No Win No Fee claims.
Frequently Asked Questions - No Win No Fee Car Accident Claims — How Does It Work?
How does No Win No Fee work for a car accident claim?
A No Win No Fee car accident claim is funded through a Conditional Fee Agreement (CFA). You pay nothing upfront and nothing at all if your claim is unsuccessful. If your claim succeeds, a legally capped success fee is deducted from your compensation — agreed in writing before your claim begins. Where we arrange After the Event insurance, it covers the other side's costs and your disbursements if you lose, on the policy's terms.
What is a Conditional Fee Agreement (CFA)?
A CFA is the formal written contract between you and your solicitor that underpins the No Win No Fee arrangement. It sets out the success fee, what happens if you lose, and any disbursements. It is governed by the Courts and Legal Services Act 1990 and the Conditional Fee Agreements Order 2013. You have 14 days to cancel without penalty after signing.
What do I pay if I lose a No Win No Fee car accident claim?
Nothing — provided you have complied with the terms of your CFA. Your solicitor writes off their fees. ATE insurance covers the defendant’s costs and disbursements. The only exception is if you have breached the CFA terms, for example by failing to attend a medical examination.
What is the success fee in a No Win No Fee car accident claim?
The success fee is capped by law on your general damages and past financial losses under the Conditional Fee Agreements Order 2013. The exact amount is agreed before signing.
What is ATE insurance and do I need it for a car accident claim?
Where we arrange After the Event insurance, it covers the other side's costs and your disbursements if you lose, on the policy's terms. Your solicitor arranges it on your behalf. If your claim succeeds, the premium is deducted from your compensation. Before arranging ATE, check whether your existing car or home insurance includes legal expenses cover.
Will my car accident claim be accepted on No Win No Fee?
Solicitors will only offer a CFA if they assess your claim has reasonable prospects of success — typically 51% or higher. They review whether another driver breached their duty of care, caused your injury and whether your losses are quantifiable. A free initial consultation will give you a clear picture of your prospects.
Can I cancel a No Win No Fee agreement?
Yes. You can cancel within 14 days of signing, free of charge. After this period, cancellation may result in liability for costs already incurred. Your solicitor must explain the cancellation terms clearly before you sign.
Do I need a solicitor for a No Win No Fee car accident claim?
For straightforward low-value whiplash claims under £5,000 you can use the OIC portal without a solicitor. However, for any claim involving more serious injuries, disputed liability, additional injuries, significant financial losses or an unreasonably low insurer offer, No Win No Fee solicitor representation significantly improves your outcome.
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Legal disclaimer: This article is for general informational purposes only and does not constitute legal advice. The terms of individual Conditional Fee Agreements vary between firms. You should read any CFA carefully and seek clarification on any term before signing. This guide reflects the law in England and Wales as at April 2026. Different rules may apply in Scotland and Northern Ireland.
Thinking about a claim? Read about Road traffic accident claims and how No Win No Fee works, or send us your enquiry.