Legal expenses insurance Legal expenses insurance: how it works

Filling in a car accident damage claim

Legal expenses insurance could cover you if you're accused of negligence behind the wheel

The cost of taking legal action can be prohibitive. If you'd struggle financially to claim compensation following an accident, unfair dismissal from work or a dispute with a tradesman, legal expenses insurance (LEI) could help you cover the cost of making a claim.

LEI is usually sold as an add-on to car or house insurance, generally for a small extra premium (around £25 is common). Occasionally it's included free.

There is always a limit to how much can be claimed under the policy – usually £50,000 or £100,000. See Legal expenses insurance policies compared for details of the cover offered by some of the UK's biggest insurers.

What does LEI cover me for?

Most legal expenses insurance (LEI) is sold when you buy a car or home insurance policy. The cover is designed to offer protection if you're faced with a potentially expensive dispute.

Car insurance legal cover

Car insurance LEI typically covers events that arise from the use or ownership of an insured vehicle. This may include taking action against a third party for negligence, or defending accusations made against you by a third party.

Home insurance legal insurance

Home insurance LEI typically covers legal proceedings relating to the insured’s home, employment, death or personal injury, as well as cases where you have entered into a contract for the sale and supply of goods and services.

More on this...

Which? Limited (registered in England and Wales number 00677665) is an Introducer Appointed Representative of Which? Financial Services Limited (registered in England and Wales number 07239342). Which? Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited. Registered office: 2 Marylebone Road, London NW1 4DF.