Legal expenses insurance in Germany which is also referred to as legal insurance or legal protection insurance is designed to ensure that insurance policyholders can protect their legal interests and to help cover any associated costs.
Legal expenses insurance in Germany: Life happens and you might find yourself in a legal situation. At which point you’ll need a lawyer. Cost of legal representation in Germany is high. That’s why having legal expenses insurance is such a plus!
Legal expenses insurance helps, for example, with:
- neighborhood disputes
- tenancy dispute
- enforcement of claims for damages
- Tax matters in court
- labor law disputes
- traffic accidents
Legal expense insurance can be individually designed with various service modules that correspond to your personal life situation (see below). In case you need protections, contact a legal protection insurer or a consultant who can make a comparison for different tariffs.
- What benefits does legal expenses insurance cover?
- In which cases does legal expenses insurance pay?
- Components of legal protection insurance
- Frequently asked questions: Who is insured in legal protection?
- What to do in the event of a dispute?
- Who bears the costs?
- How can you save on insurance premiums?
- How long is the waiting period for legal expenses insurance?
- Mediation – a fair solution for both sides
- What are “pre-contractual events” regarding legal protection insurance?
- What are the “waiting periods” for legal protection insurance?
- What does legal protection insurance not cover?
- Does the insurance cover also apply while on vacation?
- Frequently Asked Question about legal protection insurance in Germany
- List of German companies that offer legal protection insurance
- What benefits does legal expenses insurance cover?
- In which cases does legal expenses insurance pay?
- Components of legal protection insurance
- Frequently asked questions: Who is insured in legal protection?
- What to do in the event of a dispute?
- Who bears the costs?
- How can you save on insurance premiums?
- How long is the waiting period for legal expenses insurance?
- Who bears the costs?
- How can you save on insurance premiums?
- How long is the waiting period for legal expenses insurance?
- Mediation – a fair solution for both sides
What benefits does legal expenses insurance cover?
Legal expenses insurance usually covers the following costs up to the amount of the agreed sum insured:
- the legal fees of a lawyer chosen by the insured
- court costs
- Witness fees and court expert fees
- Opponent’s costs, insofar as the insured person has to bear them
- Mediation costs
In which cases does legal expenses insurance pay?
- In the case of partial success in court:
If the costs are divided between the parties by the judge. - If the opponent is insolvent:
Your own legal/court costs if you win a case – but the opponent is insolvent. - In the case of out-of-court disputes:
If the opponent is not obliged to reimburse the third-party legal fees.
Costs that have been assumed without legal obligation will not be reimbursed. These include, for example, lawyers’ fees that are above the statutory fee rates or costs of the opponent that you have voluntarily assumed.
Components of legal expenses insurance
Self-employed
Depending on the individual situation, only the professional, only the private or both areas can be insured.
Advice on legal protection in family and inheritance law
If the legal situation changes in questions of family and inheritance law and you seek legal advice, for example if you want to know what claims you have after an inheritance.
Non-self-employed
You can choose between a “large” and a “small” insurance package, insure yourself additionally for rental and real estate matters or, as an older person, exclude the professional area. Insurers offer various legal protection packages for this, which consist of different service modules.
Motor vehicles
The insurance cover can be limited to disputes relating to the vehicle.
Tax legal protection in court
If a process becomes necessary because of taxes or other charges, such as fees or customs duties, for example because the tax office does not want to recognize the income tax return.
Employment legal protection
For disputes relating to the employment relationship, e.g. B. if you get fired or your employer owes you money. Or in the case of service and pension claims in a public-law employment relationship, for example disputes regarding classification in a specific salary group, promotions, transfers or assistance in the event of illness.
Housing and property legal protection
If you have to assert your interests as a house, apartment or property owner or as a tenant, for example in the event of rent increases, terminations or disputes over utility bills.
Legal protection in contract and property law
If you have to assert or defend against claims from everyday contracts in the private sector, for example from a purchase contract, a repair order or a travel contract.
Victim Legal Protection
If, as a victim of a violent crime, you want to assert claims in a criminal court process as a joint plaintiff. Example: As a passenger on public transport, you are seriously injured as a result of an attack.
Traffic Administrative Legal Protection
If the driver’s license is involved in an objection procedure before the administrative authority and in a subsequent procedure before the administrative court, for example if your driver’s license is revoked for violating traffic regulations.
Disciplinary and professional legal protection
For example, if a civil servant is threatened with disciplinary action for an alleged misconduct.
Criminal and administrative offenses legal protection
If you have to defend yourself in criminal proceedings for negligent violation of criminal regulations or in proceedings to pay a fine, for example if you are accused of driving in violation of the rules or of having negligently injured a person.
Social court legal protection
In proceedings before a German social court, for example if the statutory health, accident, pension or unemployment insurance does not provide adequate benefits.
Legal Protection for Damages
For enforcing claims for damages, e.g. after a traffic accident.
Frequently asked questions: Who is insured in legal protection?
The following are usually insured:
- the policyholder
- the spouse or, if desired, the non-marital partner
- all minor children
- unmarried children of legal age up to the age of 25 – as long as they do not yet have their own profession. In the traffic sector, children of legal age need their own legal protection, provided that a vehicle is registered for them.
- In professional legal protection for the self-employed, employees are also protected in their professional activity. Attention: The persons co-insured in a contract cannot take action against the policyholder or against each other.
The exact scope of the insurance cover results from the insurance contract and the general conditions of the insurer.
What to do in the event of a dispute?
In the event of a dispute, you should first contact your insurance company. It informs about:
- the insurance cover/specific benefits
- the further procedure and
- the possibility of mediation
If necessary, the insurance company will recommend a competent lawyer.
Who bears the costs?
- If the insurance company agrees to cover the costs, he will assume the costs directly within the framework of the agreement. The insurance customer does not have to advance any money.
- If the insurance company refuses to cover the costs, you can have the refusal reviewed – out of court via the insurance ombudsman. By the way: The insurance customer can also have a refusal due to a lack of prospects of success or willfulness checked out of court in a special procedure.
How can you save on insurance premiums?
In order to keep the insurance premium as low as possible, you can agree on a deductible with the insurer. It is usually 150 or 200 euros per insured event. In the event of a dispute, the insured person then pays this share himself. Exception: the opponent is defeated and must reimburse the entire costs of the legal dispute.
How long is the waiting period for legal expenses insurance?
With legal expenses insurance, there are waiting times for some service modules. This means the period between the start of the contract and the start of the insurance cover. The waiting time is usually three months. This is to avoid that an insurance contract is only concluded shortly before a foreseeable legal dispute.
Mediation – a fair solution for both sides
In mediation, both parties to the dispute, with the help of a specially trained and neutral mediator, try to find a solution together at an early stage that is fair to all parties involved. Legal protection assumes the costs for the policyholder.
Successful mediation saves time, nerves, and possibly a lot of money. Because through a successful mediation process, the parties to the dispute find a solution that is acceptable to both sides. Mediation is particularly suitable for everyday disputes, for example in civil law with tenancy law or neighborhood disputes. This means that you can still live next door to your neighbors even after the dispute.
It is best to ask your insurer whether mediation can help in your case. If the conflict cannot be resolved through the mediation process, you can choose legal recourse at any time, which is then usually also financed by legal expenses insurance.
What are “pre-contractual events” regarding legal expenses insurance?
In Germany, legal expenses insurance policies only offer coverage for future disputes. Insurance coverage cannot be provided for legal disputes caused before the policy inception date or occurring during a waiting period. For example, the terms and conditions of legal expenses insurance contracts typically stipulate that the insurer is not required to provide coverage for pre-contractual events (Vorvertraglichkeit) or events that occur during an agreed waiting period (usually lasting three to six months) after the policy inception date.
This allows insurers to protect themselves against claims made by clients who take out legal expenses insurance only when a conflict is to be expected or has already arisen.
What are the “waiting periods” for legal expenses insurance?
3 month wait for…
- labor legal protection
- Apartment and property legal protection
- Legal protection in contract and property law
- Tax legal protection in court
- Social court legal protection
- Traffic administrative
- legal protection
No waiting for…
- Legal Protection for Damages
- Disciplinary and professional legal protection
- Criminal and administrative offenses legal protection
- Protection of interests in purchase and
- leasing contracts for a brand new vehicle
- Advice on legal protection in family and inheritance law
What are the legal expenses insurance costs in Germany?
Legal expenses insurance for the private, professional and transport sectors is available from as little as 11 euros per month. In comparison to legal protection insurance with a higher monthly premium, however, cheap tariffs often offer lower insurance cover.
How much does good legal expenses insurance cost?
Good legal protection insurance costs between 15 and 17 euros per month. These tariffs offer comprehensive protection in the areas of private, professional and transport and also meet the criteria of the Stiftung Warentest.
How can you recognize good legal expenses insurance tariffs?
You can recognize good legal protection tariffs based on the following criteria:
- Stiftung Warentest minimum protection (Finanztest, 05/2020) – This minimum protection defines quality standards in the areas of private life, work and transport. In the online comparison, you can simply select the “Stiftung Warentest” filter.
- CHECK24 tariff rating – The tariff rating shows how efficient a tariff is. Our experts do not rely on external rating agencies or information from insurance companies, but analyze and evaluate each tariff individually.
- Customer ratings – The ratings provide information about the user-friendliness and performance of a tariff. They are recorded both after completion and through regular satisfaction surveys.
Recommendation: Look for tariffs with a sufficiently high number of positive customer reviews and a good tariff rating. You can find this together with the filter of the Stiftung Warentest minimum protection in the CHECK24 legal protection comparison
Which factors determine the exact price of legal protection insurance?
The exact cost of legal protection insurance depends on a number of factors, including:
- desired building blocks and scope of services
- age and place of residence
- professional status and marital status
- Amount of the chosen deductible in the event of damage
- selected payment method (monthly or annually)
What does legal expenses insurance not cover?
Legal protection cannot cover all areas – after all, it should remain affordable. For this reason, procedures in the following areas are generally not insured:
- the house building
- copyright and trademark law
- Gaming or betting contracts and promises of winnings
- capital investments
- Stopping and parking violations on the road
In inheritance law, often only the costs for a consultation with a lawyer are covered if a change in the legal situation (e.g. due to the death of a testator) requires this.
Does the insurance cover also apply while on vacation?
Yes. The benefits of legal expenses insurance apply without restriction in Europe and the Mediterranean countries. Many insurers offer worldwide insurance cover – but usually only for private (not work-related) stays abroad of up to six weeks.
Please note: The insurance contract regulates the amount up to which legal protection covers the costs.
Frequently Asked Question about legal expenses insurance in Germany
Can my insurer terminate the contract at the end of the policy period even though only few or no insured events have occurred?
Yes. Legal expenses insurance contracts may be terminated at the end of the policy year on three months’ notice without stating any reasons. In such cases, the contract is terminated on the normal expiry date of the policy.
My previous insurance company terminated the contract because I frequently submitted claims. Can i be blacklisted? and do insurers share data in this way?
Yes. When taking out insurance, policyholders are provided with the terms and conditions of insurance and a leaflet on how data is processed. This leaflet states that insurers may pass on data to the Notification and Information System of the German Insurance Industry (Hinweis- und Informationssystem der Versicherungswirtschaft – HIS) when a contract is terminated. This data comprises information that you are legally required to disclose when signing a new contract.
Can a policyholder or insurer terminate a legal expenses insurance contract following a claim?
Both the policyholder and the insurer may terminate the insurance contract early after a claim under certain conditions. The German Insurance Association (Gesamtverband der Deutschen Versicherungswirtschaft e.V. – GDV) has set out non-binding sample terms and conditions for legal expenses insurance (Allgemeine Bedingungen für die Rechtsschutzversicherung – ARB 2012). These terms and conditions lay down the ways in which a contract may be terminated after an insured event has occurred. Most insurers have incorporated the German Insurance Association’s terms and conditions as they stand into their own sets of terms and conditions. However, insurers are still free to impose terms and conditions that differ from those stated above. It is therefore impossible to give a general answer to the above question, as it always depends on what has been agreed with your insurer in your specific case. For this reason, please consult the terms and conditions provided by your insurer.
List of German companies that offer the best legal expenses insurance
The following are the 45 legal expenses insurance providers in Germany operating in 2022 and offer the “legal expenses insurance” product :
- AZ
- ADVOCARD Legal Expenses Insurance Ltd
- Allianz Insurance Corporation
- ARAG SE
- AUXILIA legal protection insurance company
- AXA Group Ltd
- BA the Bayerische Allgemeine Versicherung AG
- Badische legal expenses insurance company
- Bavarian homeowners’ insurance company based on mutuality
- BGV Insurance Ltd
- Concordia mutual insurance company
- Condor Allgemeine Versicherungs-Aktiengesellschaft
- Continental property insurance company
- DA German General Insurance Corporation
- Debeka Allgemeine Versicherung Aktiengesellschaft based in Koblenz am Rhein
- DEURAG German Legal Protection Insurance AG
- DEVK legal protection insurance company
- DMB Legal Protection Insurance AG
- ERGO Insurance Ltd
- Driving Instructor Insurance Mutual Association
- GVO Mutual Insurance Oldenburg VVaG
- HDI Insurance Ltd
- HUK24 AG
- HUK-COBURG Legal Protection Insurance AG
- IDEAL Insurance Ltd
- Itzehoer Insurance/ Fire Guild from 1691 mutual insurance association
- LVM Agricultural Insurance Association Münster aG
- Mecklenburg Insurance Company aG
- New legal protection insurance company AG
- Public fire insurance in Saxony-Anhalt
- Public Life Insurance Institution Oldenburg
- ÖRAG Legal Protection Insurance AG
- Provincial Versicherung AG The insurance of the savings banks
- ROLAND Legal Protection Insurance AG
- R+V General Insurance Ltd
- R+V Insurance Ltd
- SIGNAL IDUNA Allgemeine Versicherung AG
- Sparkassen-Versicherung Sachsen Allgemeine Versicherung AG
- Uelzen General Insurance Company aG
- Insurer in the area of Kirchen Sachversicherung AG
- Verti Insurance Ltd
- VGH Regional Fire Fund Hanover
- VHV General Insurance Ltd
- WGV Insurance Ltd
- Württembergische Versicherung AG
- Zurich Insurance plc branch for Germany
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