Home / Money Articles / Do I need legal cover on my home and car insurance?

Do I need legal cover on my home and car insurance?

car legal cover

Written by:

Legal cover is often offered with home and car insurance, but is it worth having? With more households trying to cut back on their monthly outgoings, is this just an extra expense or something that’s really worth the money?

What is legal cover?

Legal cover will provide you with legal advice and financial help if you need to pursue specific types of claims. This will usually cover you for claims such as personal injury and accidents with uninsured drivers. There are two types of legal insurance cover: before the event and after the event cover. Legal cover provided by car and home insurance policies is generally before the event cover. This is taken out before you need to make a claim and won’t cover you for any existing proceedings.

Check what’s covered

Before you decide to add on legal cover you need to ensure exactly what it covers and whether it’ll be of any use to you and your circumstances. What sort of incidents does it pay out for and are you ever likely to make any of these claims? You can never see into the future, but you’ll already have an idea of how you’ll react in certain circumstances. For instance, if you had a car accident would you make a personal injury claim?

Legal insurance usually covers a number of different types of legal help, so it’s worth deciding if these are going to be relevant to you. Personal injury cover is used if you’ve had an accident in the car, at work or in a public place that wasn’t your fault. A policy that covers you for employment disputes will provide help for constructive dismissal, redundancy or contractual issue cases. It could cover you for other contractual problems, such as tenancy agreements and the purchase of goods and services. Legal insurance may also offer cover you for tax enquiries and legal document preparation.

woman phoning car legal cover

It’s important to check if there are any limits on the amount you can claim for one case or the number of cases you’re allowed. If there is a limit on individual cases, make sure that it’s substantial enough to cover legal proceedings: £50,000 is the average amount of cover.

Are there any exclusions?

As well as being aware of what the cover includes, you also need to see if there are any exclusions. Legal insurance will generally not cover you for family law cases, including divorce and child custody proceedings, or libel issues. If these are likely to affect you, then it might be worth considering paying for legal help another way.

Are you covered already?

You need to check your other insurance policies and current accounts to ensure that you don’t already have legal cover. Unless this package offers considerably more, it’s not worth having two separate policies.

Once you’ve checked through the cover documents and understood exactly what’s included and excluded, you need to decide whether it’s appropriate for you. If you want the security of the cover and there is the possibility you might need it in the future, then it could be a cost effective option for you.






About Catherine Stern

About Catherine Stern

Catherine Stern is a freelance writer with a background in marketing and PR. She currently writes web content on a range of subjects, from finance and business to travel and home improvements. As a working single mum of two young boys she understands the pressures that today’s working parents face and the topics they want to read about.

View all posts by