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Legal expenses insurance explained

By Dean Sobers

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Legal expenses insurance explained

Legal expenses insurance can help you make a claim if you're involved in an accident or an employment dispute. We explain how it works.

From claiming against a negligent driver to helping resolve an employment dispute, legal expenses insurance offers a lot for a relatively small price.

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 you can claim 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 legal expenses insurance cover me for?

Most 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 cover

Home insurance LEI typically covers legal proceedings relating to your 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.

  • Last updated: August 2016
  • Updated by: Dean Sobers

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