Legal expenses insurance – well insured with legal protection

The way to court, whether in debt or not, can quickly become very expensive. Basically, the loser pays the costs of the lawsuit. And for both parties.

Reduce the cost risk with a legal expenses insurance

Reduce the cost risk with a legal expenses insurance

If you have legal protection insurance, you can minimize the risk of having to stay at high legal fees and court costs after a lost lawsuit. The legal expenses insurance not only covers the legal fees and court costs, but also any costs for experts and expenses for any witnesses. Even if this type of insurance is still considered by many to be not absolutely necessary (such as the existing insurance liability or health insurance) and legal insurance is still a relatively young branch of private insurance in the field of insurance law, it is becoming more and more important in view of steadily increasing legal disputes, but everyone should decide for themselves on the meaning and nonsense.

What are the costs in litigation?

The amount of the costs incurred in the legal dispute depends on the amount in dispute. When it comes to a sum of money, the value in dispute corresponds exactly to the claim. In the case of property items, the material value is used to calculate the value in dispute. In some cases, there are also benchmarks that can be used for the court sets the value of the dispute.

Especially with amounts in dispute up to a maximum of 10,000 euros, the process may be more expensive than the actual subject of the dispute. Frequent cases are, for example, the dispute over defects in the used car purchase or neighborhood disputes in general.

With a legal expenses insurance you are on the safe side

With a legal expenses insurance you are on the safe side

As a rule, those who are insured for legal protection are on the safe side in the event of a dispute. But, remember, before you file a lawsuit, seek the assurance of insurance coverage, because the insurers reserve the so-called cover letter.

Legal expenses insurance is not equal to legal expenses insurance. The insurers divide them into three areas: private law, professional protection and traffic protection, sometimes even more differentiated. In addition, a distinction is usually made between employees and self-employed.

As a rule, legal protection insurers offer a combination of private-law protection, professional rights protection and traffic rights protection. Unless otherwise agreed, legal expenses insurance covers the following areas:

Legal protection provides effective protection in most legal disputes

  • Damages legal protection
  • Legal employment
  • Housing rights protection (eg tenancy law protection)
  • Real estate legal
  • Legal protection in contract and property law
  • Legal protection before the tax courts in tax matters
  • Administrative Law Protection
  • Legal protection in traffic matters (traffic legal protection)
  • Disciplinary and legal status protection
  • Legal protection in criminal matters
  • Legal protection before the social courts (Hartz IV etc.)
  • Offenses legal protection
  • Legal advice on family, life partnership and marriage law

Even if it is true that you are well secured with a legal expenses insurance in case of emergency, there are also some cases in which the insurance does not apply.

Examples of this can be:

  • Cases related to a strike
  • Trials before constitutional courts
  • everything about building a house
  • Claims under the legal protection against the insurer
  • Disputes between policyholders (family members)
  • Cases in the context of insolvency of the policyholder
  • the defense of certain claims for damages

Therefore, it is important to read the General Terms and Conditions of Insurance before you conclude the insurance, or to inquire and obtain information. If necessary, some cases may be covered by the conclusion of additional policies.

Incidentally, this also applies to all cases that have something to do with tenancy, other conditions of use and rights in rem, the land, buildings or parts of buildings. Because the building, housing and property legal protection is not part of a private legal protection. If you want to protect yourself in these cases, you should definitely take out the corresponding insurance. It is mostly in the package.

By the way, even those who have to answer to a criminal court for an intentionally committed offense can in most cases not hope for reimbursement by the insurer. Although some insurance companies offer retroactive insurance coverage should the policyholder be convicted for negligent offenses only, in the case of a minimum one-year criminal offense, most insurers generally exclude coverage regardless of whether the charge is justified and right is or not.

What should be considered when concluding a legal expenses insurance?


Everybody can conclude a legal expenses insurance, employee or self-employed person. However, the activity is decisive for the tariff. Incidentally, even those who are self-employed only as a secondary activity can be considered independent. Decisive is the annual turnover, the insurers set upper limits between 6,000 and about 20,000 euros.

Basically, the insurance coverage for the self-employed is only marginally expensive. But, there is a possibility that the protection of professional rights is excluded in the case of traditional self-employed insurance. For an employee who is only self-employed outside the job, this may mean that he is not covered by insurance for his full-time job. You should pay attention to this when concluding the insurance.

Who is insured?

If you do not opt ​​for a single rate, the life partner and underage children are covered, whether you are married or not. Children who have reached the age of majority are insured until they have their own paid professional activity.

When does the insurance cover start?

The insurance cover begins from the moment when the first or if applicable, one-time premium insurance has been transferred to the insurance company. However, the legal expenses insurance is often slightly different than other insurance companies. Often, the legal protection starts after a certain time, usually the waiting period is 3 months. The insurers want to exclude that the insured only seeks to finance for an upcoming lawsuit.

In some cases, the waiting period may be even longer. However, there are also some types of legal expenses insurance without waiting. However, the entry into force of the insurance cover without waiting time is rather the exception. Be sure to get this information in advance from your insurer. In divorce matters, the cut-off period for reimbursement may even be up to three years. Some insurers even exclude divorce matters completely.


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