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Car Insurance Legal Expense Cover – The Policy Essential

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Car Insurance Legal Expense Cover – The Policy Essential

Like many people buying car insurance, you shop around and buy online. You’ve found a really good, cost-efficient deal. So when it comes to the final checkout, do you choose to tick Yes or No in that Legal Expenses Cover box? It will add a little more to the total, and it’s not an absolute requirement, so you may be tempted to leave it out. Not least because it’s definitely not the most well-known part of insurance! It is, however, something we think you really should consider adding if it’s not in the policy as st andard. And here’s an example of why:

Earlier in the year Jake, one of our freelance writers, was involved in a car accident. His Golf Mark I is his pride and joy, and he’s spent many happy weekends working on it. So naturally, he wanted total insurance coverage for every eventuality – even legal expenses.

This certainly proved to be the right decision after the accident. The car was hit from the rear, so some of the vehicle damage could be fixed. The insurance company worked fast to deal with the claim. Unfortunately, Jake also suffered a broken wrist and some whiplash. If he hadn’t taken legal expenses cover, the bill for a solicitor to pursue his compensation claim would have been solely his responsibility. Fortunately, since he had the cover, Jake was able to get his compensation quickly. Working as a freelance writer, Jake doesn’t have the safety net of employer sick pay. Lost hours mean lost money. Jake was out of work for a month – and a month’s wages. With legal expenses cover, however, Jake was able to claim for loss of earnings and will receive compensation for them any day now.

The total cost of this peace of mind and earnings security? An extra £2 a month on his premium, surely a worthwhile investment for anyone’s money!

Fully comprehensive car insurance ensures that your vehicle is well taken care of, but how about the driver? Jake’s accident was not his fault, but he had to spend a month off work. Without legal expenses cover, the cost of getting compensation would have fallen to him. With it, he was as well protected as his beloved car, and didn’t have to worry about being able to afford to make a claim.

Take another example of a typical accident: you are unharmed, but your car has to wait in the repair shop for two weeks while parts come in. Without replacement car hire as part of your insurance deal, you will have to rely on public transport – not the reason you bought your own vehicle! With legal expense cover, you can use a hire car and know that your trouble and inconvenience will be compensated.

All you need to do when you claim on your legal expenses policy is to provide the accident details in the same way you normally would – all the paperwork will be taken care of for you. It’s possible that you may need to speak to your solicitor, or appear in the st and in the event of the case going to court, but you won’t ever have to pay any legal fees.

And the cost is low, sometimes even free. Admiral include it as st andard. Most insurers do make a charge, but it averages around £20 a year – for example, More Than charge £17.85, and Budget add an extra £24. Consider the legal battles that have resulted from accident claims in the past – especially those where serious injuries and claims were involved. Compensation – and costs – can run into millions. No-one can doubt that in cases like these, legal expenses cover is a worthwhile addition to any policy.

So next time you buy car insurance, make sure your policy includes legal expenses cover. Take it as an extra if it’s not part of the st andard package. You’ll barely notice the extra cost, but you’ll certainly be aware of the benefits if you ever need it.

Car Insurance FAQs

Can I insure a modified or classic car; who will offer insurance cover?

Yes, you can insure a modified car but because your car is a specialist car, not all auto insurance companies might be willing to provide coverage for it since it requires high price replacement parts and also skilled labor if the car is involved in an accident. Thus, you have to take a special car insurance that is designed especially for modified and classic cars.

How can I cut down my car insurance premium?

If you wish to cut down on your car insurance premium you must take care of a few things. Park your car overnight in the garage rather than leaving it on the drive. Fit insurance approved anti-theft devices; consider Third Party Fire and Theft for older cars. Find out discounts offered by the insurance provider when requesting quotes. Young drivers (under 25), who are often charged extremely high premiums, should have an extra driving course certificate.

What is ‘excess’?

It is the amount you have to pay when you make a claim for the loss or damage to your car. It can be voluntary or compulsory. If someone else causes the accident you may be able to reclaim the excess through the legal cover, which can be taken out with your car insurance policy. Otherwise you lose the excess. Voluntary excess is the amount you agree to pay to the company. It offers premium discounts. Compulsory excess is generally imposed to young drivers. Because their risk factors are high and the companies don’t want to insure them. So, in order to insure, they have to surrender with this payment.

What is legal cover?

It provides expertise and assistance required to recover uninsured losses such as medical costs, loss of earnings and excess payments where the fault was not yours. It is available as an optional with most car insurance policies.

Can an insurance company cancel my auto policy?

Yes, you auto insurance policy may st and canceled if you fail to pay the premium or if your consumer’s license has been suspended or revoked during the term of an auto policy. Also, if there is a fraud or serious misrepresentation when completing the insurance application, if the you are convicted to a crime, or if changes are made to the property that increase the risk of loss then the company may cancel your insurance policy.

Car Insurance. Optional Legal Expense Cover Is Well Worth The Extra.

Peter, our freelance journalists doesn’t take kindly to people driving into his beloved car. No, he doesn’t use his fourteen stone of gym-honed muscle to exact retribution nor is he into road rage. Of course he’s got his car comprehensively insured but he’s also covered another way. He’s got legal insurance. He included in his car insurance as an optional extra. This extra cover allows him to claim for costs and losses excluded covered from normal comprehensive and third party policies. So four months ago when his car was whacked from behind at the traffic lights, the legal profession swung into action! Not for free you underst and, after all who’s heard of a solicitor labouring for free? No, but it was free to Peter – his insurance company paid all his legal costs.

Whilst the garage appointed by his insurer made a beautiful job repairing his bent MX5, his comprehensive policy didn’t normally cover claims for personal injury or loss of earnings. So the extra £2 a month Peter forked out for legal expense cover, became money well spent. He’s already received compensation for the broken wrist he suffered and negotiations for his loss of earnings are well advanced. One-h anded journalists aren’t much use in our office so he took a month off!

Legal expense insurance assists policyholders to claim back losses and compensation where the accident wasn’t their fault. The losses can include the cost of hiring a replacement car whilst yours is in the garage and, for those not comprehensively insured, the costs of having your car repaired. As in Peter’s case, legal expense insurance will also fund claims for personal injury and loss of earnings.

Cover for legal expense is one of those insurances that’s under rated until it’s called on. The insurer will run the claim for you and sends the settlement cheque at the end of the process. All you have to do is record the facts on the legal expense claim form, speak to the solicitor nominated by your insurer, be prepared to answer a few follow-up questions, and sit back. If the case goes to court, they’ll represent you and fight your corner – although you may also have to attend.

Most car insurance policies sold on the Internet don’t automatically include legal expense cover – it’s normally an optional extra. That’s because price competition on the net is so fierce that the insurers prefer to keep their headline premiums down as low as possible.

You’ll find that the optional cost of legal expense cover does vary from insurer to insurer. For example, More Than comes in at £17.85 per year, Direct Line £19.95, Churchill £21 and Budget £24 per year. Just a few insurance companies such as Admiral, include some legal expense cover for free.

So make sure you don’t forget legal expense cover when you buy car insurance. Complicated claims for compensation can drag on your years especially if severe injury is involved, and final settlements can end up in millions.