Legal Expense Insurance: Important Facts And Information
Overview: Legal expense insurance
Taking legal action can be very costly. This is precisely why most people need legal expenses insurance. If you would struggle financially to pay a lawyer to help you contest unfair dismissal from work or claim compensation in the event of an accident, legal expenses insurance can go a long way in helping you meet the legal costs of dealing with such cases.
In the UK, legal insurance is sold as an add-on to house or car insurance at a small additional premium of approximately £25. In some cases, it could even be included for free alongside house or car insurance covers. Most UK insurers offering legal expenses insurance allow claims up to £50,000 or £100,000.
What exactly does legal expense insurance cover?
As mentioned above, most legal expenses insurance covers are sold or offered when you buy the home or car insurance. The cover is meant to offer you protection in case you are faced by potentially expensive car or home disputes. Below are some of the main types of legal expenses insurance to help you understand what the insurance covers.
1. Car insurance legal protection/cover: This type of insurance covers legal expenses that may arise from use/ownership of an insured car. The cover will cater for any legal expenses that may arise when taking action against third parties for negligence or defending any accusations made against you.
2. Home insurance legal protection/cover: This type of insurance covers legal expenses relating to an insured’s home, death, personal injury or employment as well as court cases where the insured has entered into contracts for the sale and/or supply of goods and/or services.
Should you buy legal expenses insurance?
As mentioned above, the insurance comes in handy when a person feels that they can’t be able to meet the costs of pursuing claims on their own. In such cases, the insurance is warranted. It is, however, important to note that the insurance has some flaws, especially when making claims.
You should also be careful to avoid over insuring. Also, it is important to know who is covered in the policy. For instance, car insurance legal protection covers the policyholder and named drivers along with passengers.
Home insurance legal protection covers the policyholder, their spouse and members of their family.
Important considerations before taking legal expense insurance
1. Are you already covered: Before you decide to buy legal expense insurance, you need to confirm you aren’t already covered. It is also advisable to seek free legal advice about the issue.
2. What are your chances: Insurers usually accept to take on your legal expenses only when there is a high chance of winning. You must, therefore, evaluate your chances carefully before you decide to use this cover.
3. Consider the size of the claim: You should also have an accurate estimate of your claims before requesting your insurer to take it up. Insurers always do their own investigations. If they think your estimates are inaccurate, they may very well turn you down.
4. Consider the time limits: It is also important to note that there is a time limit when making a claim. Time limits vary depending mostly on the type of claim.
In summary, legal expenses insurance is very important because it protects people from the high costs of launching claims or defending yourself. Although legal expenses insurance has some flaws like the ones mentioned above, the insurance is still helpful when you follow the rules to the letter.