“Legal expenses insurance is described by the FSA on its Money Made Clear site. This is what it says:

This is a way of protecting yourself against some of the costs involved when funding a legal dispute, which can be very expensive. The cover often provides for legal advice helplines, as well as the costs of appointing solicitors, expert witnesses and representation if the claim goes to court.

It can be bought with some insurance policies. For example, some companies selling motor and household contents insurance may include this cover as a free add-on, while others give you the option to attach the cover for an additional premium.

If you’ve decided you want this type of cover, check your motor or household contents insurance policies - you may already have this cover written into your insurance.

You should also check your insurance policy documents carefully to make sure you understand what you are covered for, the level of cover and any limitations that apply. For example, in most circumstances you may not be able to choose which lawyer is instructed - the insurance company usually appoints a lawyer to act for you.

Also this type of cover normally allows the insurer to withhold or withdraw funding if there isn’t a ‘reasonable prospect of success’, which is usually interpreted to mean that you have a 51% or better chance of winning or defending your case.”

The page can be viewed by clicking here.

Comments

1. Brian Cook Says:
   July 6th, 2009 at 11:23 am

   Query - Is this legal cover limited to motor vehicles or can it extend to
   house/contents insurance.
   regards BC

   Answer - The policy is for any accident. It is wider than the policies you buy when
   insuring a vehicle, as that policy is only for use of that vehicle.
   Our policy also covers wife/partner, children up to 21 years who live with
   you, plus passengers and pillions.
   We also renew it free evry year.

   The legal expenses insurance you might buy on a house policy is usually
   different. It usually excludes road accidents, and tends to cover property
   disputes, other legal areas like employment and contract. Do check the
   cover provided on such a policy as the cover does tend to be limited and
   there are usually many exclusions.
   The Your Key policy is therefore different from, and not to be confused
   with the cover you might buy when insuring your house.

   YourKey team

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