Car Insurance Legal Cover: Is It Worth It?

Key Highlights

• Car insurance legal cover, also known as motor legal protection in the UK, helps you claim for losses and compensation that aren’t covered by a standard car insurance policy if you’re in a car accident that’s not your fault.
• It covers your legal fees up to an agreed limit, usually at least £100,000, so you can make legal claims for financial losses or compensation for personal injury.
• Car insurance legal cover can also provide separate cover to pay legal fees if you’re prosecuted for a road traffic offence like speeding, typically up to £10,000.
• It includes various legal expenses, such as personal injury claims, damage to your car, loss of earnings, loss of possessions, travel costs, and expenses related to making your claim.
• The pros of car insurance legal cover include getting tens of thousands of pounds paid in legal costs, quick and easy access to legal advice, and the potential for major pay outs if you win a court case or secure a favourable legal settlement.
• The cons include the possibility of your insurer refusing to fund your legal claim if they believe you don’t have a reasonable chance of winning the case, even if it’s already in the courts, and the potential for not winning the case even if your insurer agrees your legal claim has a good chance of success.

What is a Car Insurance Legal Cover in a Nutshell?

Car insurance legal cover, also known as motor legal protection, is an additional coverage option that you can add to your car insurance policy. It provides financial protection and legal support if you need to make a legal claim following a car accident that wasn’t your fault.

In simple terms, car insurance legal cover helps you cover the legal costs and expenses that are not covered by your standard car insurance policy. It typically includes coverage for legal fees, such as solicitors' fees and court costs, as well as other related expenses like phone calls and travel to court. This coverage is designed to give you peace of mind and ensure that you have the necessary support to navigate legal proceedings if you find yourself in a situation where you need to make a claim.

To have a clear understanding of what car insurance legal cover includes, it is important to carefully review your policy documents. These documents outline the specific details of the coverage, including the limits and exclusions.

Importance of Legal Cover in Car Insurance

Car insurance legal cover is important because it provides financial protection and legal support in the event of a car accident that wasn't your fault. When you add legal cover to your car insurance policy, you can have peace of mind knowing that you have the necessary resources to navigate legal proceedings and make a claim for financial losses or compensation for personal injury.

One of the key benefits of legal cover is that it can help you recover expenses that are not covered by your standard car insurance policy. This can include legal fees, such as solicitors' fees and court costs, as well as other related expenses like phone calls and travel to court. Without legal cover, you may be responsible for these costs out of pocket, which can be a significant financial burden.

Additionally, legal cover provides you with access to legal support and advice. If you find yourself in a situation where you need to make a claim, having access to expert legal advice can be invaluable. It can help you understand your rights, navigate the legal process, and increase your chances of a successful outcome.

Detailed Breakdown of What Car Insurance Legal Cover Includes

Car insurance legal cover includes a range of legal expenses that are not covered by a standard car insurance policy. This can include claims for personal injury, damage to your car, loss of earnings, loss of possessions, travel costs, expenses related to making your claim, and your excess towards car insurance claims. It may also provide a helpline that offers confidential legal advice should you need it.

Legal Representation

One of the key components of car insurance legal cover is access to legal representation. In the event of a car accident that wasn't your fault, having a legal team on your side can make a significant difference in the outcome of your claim.

Legal representation can help you navigate the legal process and ensure that your rights are protected. They can gather evidence, negotiate with the other party's insurance company, and, if necessary, take legal action on your behalf. This can include filing a lawsuit, representing you in court, and advocating for your best interests.

car insurance legal cover typically covers the legal fees associated with legal representation. This can include solicitors' fees, court costs, and other related expenses. It provides you with the financial support needed to hire a legal team and pursue your claim without the added stress of worrying about the cost.

Legal Advice

In addition to legal representation, car insurance legal cover also provides access to expert legal advice. If you find yourself in a situation where you need to make a claim, having access to legal advice can be invaluable.

Legal advice can help you understand your rights, navigate the legal process. Whether you have questions about the claims process, need guidance on gathering evidence, or want to understand the potential outcomes of your case, having access to expert legal advice can provide you with the information you need.

Car insurance legal cover typically includes a helpline that offers confidential legal advice. This helpline is staffed by legal professionals who can answer your questions and provide guidance based on their knowledge and expertise. It ensures that you have the support and information you need throughout the claims process.

Compensation Claims

car insurance legal cover can also help you make compensation claims for financial losses or personal injury resulting from a car accident that wasn't your fault. Here are some key points about compensation claims and car insurance legal cover:

• Car insurance legal cover can provide financial protection by covering the costs associated with making a compensation claim.
• It can help you recover expenses such as medical bills, loss of earnings, and damage to your property.
• Car insurance legal cover can assist you in navigating the legal process and increasing your chances of a successful claim.
• It can provide access to legal representation to file a lawsuit and advocate for your best interests.
• Compensation claims can be complex, and having the support of car insurance legal cover can help ensure that you receive the compensation you deserve.

Advantages and Disadvantages of Car Insurance Legal Cover

Car insurance legal cover has both advantages and disadvantages. It's important to consider these before deciding whether to add it to your car insurance policy. Here's a brief breakdown of the pros and cons:

Advantages:

• Tens of thousands of pounds paid in legal costs
• Quick and easy access to legal advice
• Potential for major pay outs if you win a court case or secure an ideal legal settlement
• Relatively cheap add-on to your car insurance policy

Disadvantages:

• Insurer can refuse to fund your legal claim if they don't believe you have a reasonable chance of winning the case
• Insurer may also refuse to back your case if the amount you're claiming for is less than your legal costs
• Still may not win the case even if insurer agrees your claim has a good chance of success

Cost Implication of Adding Legal Cover to Your Car Insurance

Average Cost of Legal Cover

The average cost of adding legal cover to your car insurance policy can vary depending on several factors, including your insurer, the level of coverage you choose, and your individual circumstances. On average, you may be able to add motor legal expenses cover to your car insurance policy for as little as £15 to £35.

However, some insurers may include legal expense cover as standard with certain car insurance policies which means means that you may not need to pay an additional premium for legal cover.

Factors Affecting the Cost of Legal Cover

The cost of adding legal cover to your car insurance policy can be influenced by several factors. Some of the key factors that can affect the cost include:

• Policy wording: The specific terms and conditions outlined in your policy wording can impact the cost of legal cover. Policies with broader coverage and fewer exclusions may be more expensive.
• Reasonable prospects of success: Insurers may consider the likelihood of success for legal claims when determining the cost of legal cover. Claims with higher chances of success may result in lower premiums.

Is it Possible for You to Exclude it from Your Car Insurance Policy?

Yes, you can typically remove car insurance legal cover from your policy if you no longer wish to have this additional coverage. However, it's important to review your policy documents and contact your insurer to understand the process and any potential implications.

In some cases, removing car insurance legal cover may result in a reduction in your premium. Without car insurance legal cover, you may be responsible for legal costs and expenses that arise from making a claim following a car accident that wasn't your fault.

Is Car Insurance Legal Cover Worth It?

Evaluating whether car insurance legal cover is worth adding to your policy depends on your individual circumstances and risk tolerance. Here are some factors to consider:

Circumstances Where Legal Cover Is Beneficial

There are several circumstances where car insurance legal cover can be beneficial. Here are a few examples:

• Legal advice helpline: Having access to a legal advice helpline can be invaluable if you have questions or need guidance throughout the claims process.
• Reasonable chance of success: If you have a reasonable chance of success in making a claim, car insurance legal cover can provide financial support and legal representation to help you navigate the legal process.

Situations Where Legal Cover Might Not Be Necessary

While car insurance legal cover can provide valuable support in certain situations, there may be circumstances where it is not necessary. Here are a few examples:

• Contents insurance: If you already have contents insurance or other insurance policies that cover legal expenses, you may not need to add car insurance legal cover to your policy.
• Reasonable prospect of success: If you have a low likelihood of a successful claim, it may not be necessary to add car insurance legal cover. Assessing the potential outcomes and costs can help you determine if legal cover is worth the additional expense.

Alternatives to Adding Legal Cover to Your Car Insurance

If you're considering whether to add legal cover to your car insurance policy, it's important to look at other alternative options. Here are a few alternatives for you to consider :

Relying on Existing Insurance Policies

If you're looking for an alternative to adding legal cover to your car insurance policy, you may be able to rely on existing insurance policies to provide coverage for legal expenses. Here are a few examples:

• Home insurance: Some home insurance policies include legal expenses cover as standard or as an optional add-on. Review your policy to determine if it provides coverage for legal expenses related to car accidents.
• Travel insurance: If you have travel insurance that includes legal expenses cover, it may provide coverage for legal expenses incurred while traveling, including those related to car accidents.

Opting for a Standalone Legal Cover

Another alternative to consider is opting for a standalone legal cover policy or event insurance. These types of insurance policies specifically provide coverage for legal expenses, including those related to car accidents. Here are a few key points to consider:

• Standalone legal expenses insurance policies: These policies are designed to provide comprehensive legal cover for various types of legal expenses, including those related to car accidents. They can be purchased separately from your car insurance policy.
• Event insurance: If you're seeking legal cover for a specific event or situation, such as a car accident during a planned event, event insurance may be a suitable option. It can provide coverage for legal expenses specific to the event.

How to Make a Claim on Car Insurance Legal Cover

Making a claim on your car insurance legal cover involves several steps. Here's a step-by-step process to help you navigate the claims process:

1. Contact your insurer: Notify your insurer as soon as possible about the incident and your intent to make a claim. Provide them with all the necessary details, including the date, time, and location of the accident, as well as any supporting evidence, such as photos of the damaged vehicles or injuries.
2. Legal representation: Your insurer will either appoint a solicitor for you or allow you to choose your own representative, depending on your motor legal protection policy wording. Your legal representative will guide you through the claims process and provide the necessary legal advice and support.
3. Gather evidence: Collect any relevant evidence to support your claim, such as witness statements, medical reports, or repair estimates. This evidence will help strengthen your case and increase your chances of a successful claim.
4. Negotiation and settlement: Your legal representative will negotiate with the other party's insurance company to reach a fair settlement. If a settlement cannot be reached, they may advise you to proceed with legal proceedings.
5. Legal proceedings: If legal proceedings are necessary, your legal representative will guide you through the process, representing your interests in court. This may involve attending hearings, filing legal documents, and presenting evidence.
6. Compensation and resolution: If your claim is successful, you may be awarded compensation for damages, injuries, and other losses. Your legal representative will help you navigate the process of receiving the compensation you are entitled to.

Required Documents for Filing a Claim

When filing a claim on your car insurance legal cover, you will need to provide certain documents and information to support your case. Here is a list of the required documents:

By gathering and providing these documents, you can support your claim and help your legal representative build a strong case on your behalf.

Is legal expenses insurance the same as liability cover?

Legal expenses insurance and liability cover are two different types of insurance that serve different purposes in the context of car insurance.

Legal expenses cover

Legal expenses cover, also known as legal protection or legal costs insurance, is an optional add-on to a car insurance policy that provides coverage for legal expenses. It is designed to provide financial support and legal representation in the event of a legal dispute.

Legal expenses cover typically covers the costs associated with making a claim or defending a claim in court. This can include solicitors' fees, court costs, and other expenses related to the legal proceedings. It can also provide access to legal advice and guidance throughout the claims process.

Legal expenses cover is regulated by the Financial Conduct Authority (FCA) to ensure that policyholders are treated fairly and receive appropriate coverage. Insurers offering legal expenses cover must comply with the FCA's rules and regulations to provide transparent and reliable legal services.

Liability cover

Liability cover, also known as third-party insurance, is a standard component of most car insurance policies. It provides financial protection in case you are held responsible for causing injury or damage to another person or their property.

Liability insurance covers the cost of legal fees and compensation that may be awarded to the injured party. It is designed to protect you from financial loss in the event that you are found legally liable for damages. Liability cover typically includes two types of liability:

• Third-party bodily injury liability: This covers the cost of medical expenses, loss of earnings, and other damages resulting from injuries caused to another person.
• Third-party property damage liability: This covers the cost of repairing or replacing another person's property that has been damaged as a result of an accident for which you are responsible.

While both legal expenses insurance and liability cover provide coverage for legal costs, they operate in different ways and serve different purposes. Legal expenses cover provides support for legal disputes, while liability insurance protects you from financial loss in case you are held responsible for damages.

Frequently Asked Questions

Can I Claim On My Legal Expenses Insurance If The Accident Is My Fault?

Yes, you can usually claim on your legal expenses insurance even if the accident is your fault. Legal expenses cover often provides assistance for pursuing or defending claims, regardless of fault. However, it's important to review the policy details for any specific exclusions.

Can I Add Motor Legal Protection To My Policy Separately?

Yes, you can add motor legal protection to your policy separately. Many insurance providers offer it as an optional extra, allowing you to enhance your coverage beyond the standard policy. It provides legal assistance for issues related to your vehicle, making it a valuable addition for comprehensive protection.