2023-10-08 20:52:41
In the event of a crisis, legal assistance can be crucial, such as in disputes with the landlord or defense in fine proceedings. It is even more important if an application for occupational disability is rejected and expensive reports have to be prepared. Then legal protection insurance is worth its weight in gold. But it is expensive. According to a new study by Stiftung Warentest, legal protection insurance for the areas of “private”, “professional” and “traffic” (PBV) costs between 216 and 1061 euros per year, depending on the insurer, with a deductible of 150 euros. Consumer advocates therefore recommend taking a critical look at your own areas of life to decide where insurance is really necessary.
Types of legal protection insurance: The insurance PBV mentioned is a typical legal protection insurance. In the so-called private sector, for example, claims for damages are defended or tax disputes are taken to court. Criminal proceedings are also included. The same applies to disputes arising from contracts, property and possession. There are also labor law disputes and those before the social court. Excluded from the package are, for example, defense in cases of intentionally committed crimes or administrative offenses, legal protection in questions of building financing or inheritance disputes. Even in the event of a divorce, you usually cannot rely on legal protection insurance. The list of excluded matters is long. “You shouldn’t expect that you have all-round legal protection if you have taken out insurance,” says insurance expert Michael Sittig from Stiftung Warentest.
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Choose legal protection insurance: “You should pick out important goods,” is Sitting’s advice. For example, anyone who falls victim to a hooligan in traffic may have to sue for a long time for compensation for physical injuries. The insurance is worth it. It can also be important in the area of professional legal protection. “What many people don’t know is that anyone who defends themselves against termination will definitely have to pay their own legal fees in the first instance – even if they win the first instance. “It’s regulated that way by law,” says Sittig.
“Customers should ask themselves whether they fear disputes in the areas covered by a legal protection policy,” says Peter Grieble from the Baden-Württemberg consumer advice center. Anyone who is self-employed does not need protection for disputes with their employer. The insurance companies also offer the segments individually, for example traffic legal protection, owner and tenant legal protection, private and professional legal protection for non-self-employed and self-employed people.
Services: The legal protection insurance pays the fees of the lawyers and the court, the compensation for witnesses, the costs of the expert and the bailiff. Travel costs to a foreign court are also paid. The costs will be covered up to the agreed insured sum. “Customers should generally agree on at least 300,000 euros,” says Grieble.
He recommends engaging a fee-based advisor or specialized insurance broker. “The consultation with him or her is documented,” he explains. If the expert makes a mistake, customers could later make claims for damages. Otherwise, comparing the different insurance policies and products is quite time-consuming. “If you want to get to grips with it, you won’t just be busy for an hour or two.”
The insurance comparison from Stiftung Warentest offers help. 83 PBV tariffs from 30 insurers were compared, 35 of them received “good”. “With them you can compare the prices and choose the right contract,” says Sittig.
Waiting times: Anyone who takes out insurance cannot sue immediately. The insurance companies want to protect themselves against disputes that are already in the air when the legal protection insurance is taken out and escalate shortly afterwards, as Sittig says. Most insurers therefore require a waiting period of three months, some even six months, from the start of the contract.
Things get tricky when it comes to a dispute with the landlord, for example. If a tenant has lived in their apartment for ten years and took out legal protection insurance five years ago, they sometimes still have to fight for legal protection if, for example, they receive a notice of termination. “For this reason, it is important to record a waiver of the objection of pre-contractuality in the contract,” says Grieble. This means that the insured could not have foreseen that a legal dispute would arise in an existing contractual relationship. The insurer must then take action.
Steps in the event of damage: If a dispute arises in which legal protection insurance may have to be involved, Grieble advises you to first find a lawyer yourself. “This person can obtain a guarantee of coverage from the legal protection insurer. Most lawyers offer this.” Some insurance companies suggest an initial consultation with a lawyer provided by the insurance company. According to Grieble, you don’t have to get involved in that.
If the self-selected lawyer thinks it makes sense to take legal action in court and the insurance company rejects it, there is the option of a casting vote, but also an appeal to the insurance ombudsman. “As we have observed in recent years, the ombudsman often decides in favor of the consumer in the event of a complaint,” says Sittig.
Sometimes consumers still have to pay legal fees despite legal protection insurance. “We regularly observe that lawyers do not take on cases at the statutory fee rates, but rather, for example, agree expensive hourly fees with the client,” reports Sittig. The legal protection insurance only pays the statutory fee portion; the customer has to pay the rest.
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