Is legal cover worth it?

I am soon to be renewing my bike insurance and previously I paid extra to include legal expenses insurance. I’ve never had to use it and in order to save money I was wondering whether legal expenses cover is actually worth it and what it really offers?

Neil, by email

Answer

These policies are known as ‘before the event’ insurance and protect policyholders by paying legal costs in future legal actions subject to certain criteria being met.

In theory, these policies can be useful. However, in practice, they are frequently not fit for purpose and don’t cover what they should. The most common complaint is insurers refusing to cover the client’s chosen legal representatives rather than the panel of solicitors the insurer has links to. This can lead to the appointment of a non-specialist firm which can then affect the outcome of a claim.

If you choose to take out legal expenses insurance, then it is best to read the terms of the policy carefully to find out exactly what is covered. You should also check whether you already benefit from legal expenses insurance on another insurance product such as home contents insurance.

If you choose not to take out a policy, then you will still be able to take out an ‘after the event’ policy of insurance should legal action be necessary. These are standalone policies specifically designed for the legal action you are pursuing and will cover you for exactly what is required.