Legal expenses insurance explainedExtent of cover

Common exclusions include disputes with contractors over major improvements to your home

For maximum cover it’s worth having both household and car legal expenses insurance (LEI).

Household LEI commonly covers personal injury, employment disputes (such as unfair dismissal), property disputes – disagreements over boundaries, for example – and disputes about goods or services bought or hired.

LEI with your car insurance generally covers the cost of pursuing losses because of accidents that weren't your fault.

It usually covers claiming compensation for injury, damage to your car and uninsured losses such as your policy excess and car hire.

Exclusions

All policies are different, but common exclusions include divorce or custody matters, defamation, disputes with contractors about major improvements to your house, and small claims (£5,000 or less in England, £2,000 in Northern Ireland or £750 in Scotland).

However, you can receive legal advice on small claims cases if you're a member of Which? Legal Service – available to subscribers to any of our magazines or to Which? Online for £9.75 for the first six months, then £9.75 a quarter.

Is LEI for you?

64% of those who responded to our survey have LEI and, at £15-£20 a year, it’s worth considering.

This is small change compared with the potential costs of taking a case to court. Without LEI, you could end up out of pocket even if you win, as the court may not award all of your costs.

Contacts

Financial Ombudsman Service - 0845 080 1800

Which? Legal Service - 0800 252100

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