Legal expenses insurance

TheTrafficmodule ensures that you and your family are always covered for legal assistance worldwide, in all traffic situations. This means you’re not only covered while driving a car, but also as a moped or bicycle rider or as a pedestrian. As soon as a traffic accident occurs, you can report the damage to us. We’ll then contact your legal assistance insurer, who will take full charge of the matter and do everything possible to recover your damages, even if this requires legal proceedings.

With theConsumer and Housingmodule, you and your entire family are guaranteed legal assistance within the European Union for a wide range of consumer matters, such as purchases (in-store or online) and issues with energy, phone, or internet providers. Has damage been caused to your home (in the Netherlands), or are there disputes regarding your home (such as purchase, sale, rental, maintenance, or renovation)?

These are also covered under legal expense insurance, as are disputes with neighbors or family members. Divorce is excluded from most policies because it involves a dispute between two insured parties under the same policy. In some cases, however, it is possible to purchase supplemental coverage for mediation (a form of out-of-court dispute resolution).

TheIncomemodule provides legal assistance to the entire family in disputes concerning, among other things, employment contracts, social insurance benefits or provisions, or pension entitlements. For example, if you are forced to resign, or if the amount of your benefits is in dispute, your legal expense insurance can provide legal assistance.

TheTax and Wealthmodule provides coverage for the entire family in the Netherlands in the event of disputes with, for example, the Tax Authority or in connection with a securities transaction. Disputes regarding your second home are also covered, provided it is located in the Netherlands or the European Union.

Basic legal expense insurance does not provide coverage in all cases. Legal expense insurance does not cover assistance with divorces. It is often only possible to hire a mediator after a marriage or registered partnership of at least three years. The maximum amount paid out for this is usually between €2,000 and €3,000.

Legal expense insurance is often not a priority when purchasing insurance. Still, it can be a nice addition. That’s because legal expense insurance offers several benefits:

• Although the annual premium is relatively high compared to other insurance policies, it pales in comparison to the costs you’ll face if you end up in a legal dispute. The cost of a lawyer alone is higher than the annual insurance premium.
• If you purchase legal expense insurance, the coverage applies not only to you, but to all members of your family.
• You can customize your legal expense insurance entirely on your own. By choosing which modules to include, you can tailor the policy to your needs. This also allows you to control the costs.

Insurance companies employ their own legal counsel and attorneys. If you become involved in a legal dispute, they will offer you an attorney who works for their organization. However, you are not required to choose this attorney. With legal expense insurance, you are always free to choose your own attorney. This is known as the right to free choice of attorney.

The right to freely choose your own attorney applies only if your insurer decides to pursue legal action. In the event of a legal dispute, hiring an attorney is not always mandatory. Whether this is necessary depends on the nature of the dispute.

You probably don’t expect to everneedlegal expense insurance. Still, legal disputes are more common than you might think. Whether you need to purchase legal expense insurance depends on your personal situation and your financial resources.

Suppose you find yourself in a legal dispute—would you be able to pay the legal fees yourself? Attorney fees can be very high. Often, the annual premium for legal expense insurance is significantly lower than the hourly rate charged by an attorney.

The type of legal expense insurance you need depends on your needs. There are four modules in total: Consumer & Housing,Income,Traffic, andTax Law & Assets. Do you travel a lot for work? If so, you might want to consider adding the Traffic module. When deciding on the right modules, you can also consider the insurance policies you already have. Is legal assistance already included in your auto insurance? If so, you don’t need to add the Traffic module.

Legal expense insurance isn't the cheapest type of insurance. If you want comprehensive coverage, the monthly premium can sometimes be quite high. Fortunately, you can tailor the policy entirely to your own needs. The cheapest legal expense insurance for you depends on your personal situation and the number of coverage modules you choose.

Of course, the more coverage options you select, the more expensive the insurance will be. To help you find themost affordablelegal expense insurance, we’ve put together a step-by-step guide for you.

Legal expense insurance typically includes a waiting period. However, some insurers nowofferlegal expense insurance withouta waiting period. Once you purchase the policy, you’re immediately covered in the event of a dispute. Be sure to read the fine print carefully, as there are often certain conditions attached.

Similarly, with legal expense insurance that youcan use immediately, an ongoing dispute is excluded. So there’s still no point in taking out legal expense insurance on the day you’re fired or become involved in a dispute with your landlord.

For certain disputes, some insurers only provide coverage in the Netherlands and not throughout Europe. If you also want coverageabroadfor certain disputes, it’s important to pay close attention to this when comparing policies. Many disputes will, in fact, take place in the Netherlands.

For example, disputes regarding work and income, such as those involving an employment contract or pension entitlements. When purchasing legal expense insurance, it’s important to consider what kind of coverage is best for you. Do you travel abroad often, or do you own a home abroad? If so, be sure to pay close attention to the coverage provided abroad.

Disputes Abroad

Some disputes that do (or may) arise abroad are listed below.

Accidents

The accident coverage under your legal expense insurance is often valid throughout Europe, and in some cases, you may even have worldwide coverage. This coverage protects you not only in the event of car accidents, but also when you’re riding a moped, bicycle, or walking.

Consumer Affairs

Are you buying something abroad or renting a car and encountering a dispute with the rental company? Whether these disputes are covered varies by insurer. Some insurers cover this within Europe or the European Union. Others offer no coverage at all for such disputes abroad.

Second home abroad

Do you own a second home abroad and are you facing a dispute over it? It’s not always possible to rely on your legal expense insurance in such cases. Coverage is usually limited to the Netherlands. Insurers may cover disputes within Europe, but only if you use the home yourself and do not rent it out.

When purchasing legal expense insurance, it’s important to consider what kind of coverage is best for you. Do you travel abroad often, or do you even own a home abroad? Pay close attention to the coverage, including the optional add-ons.

In the event of adivorce, coverage under legal expense insurance is often limited. This is because it involves a dispute between two insured parties under the same policy. When coverage is provided, it is often limited to mediation. In mediation, you and your partner are assisted by an independent (third-party) mediator.

This person is called the mediator. He or she helps you reach agreements and takes into account both you and your partner’s feelings. The maximum amount you can spend under your legal expense insurance is specified in the policy terms and conditions.

Many insurance policies include a deductible. Although legal expense insurance provides you with legal assistance but never covers the amount of damages, some insurers have nevertheless set a deductible.

How exactly does the deductible work? It’s actually the same as with any other insurance policy. You pay the first portion of the legal fees incurred yourself, up to the amount of the deductible.

What is a franchise?

The deductible should not be confused with the threshold. The threshold is the minimum amount below which the legal expense insurer will not process a claim.  Insurers use this amount to avoid incurring significant costs when handling a legal dispute over a matter of minor value. Only when the damages incurred as a result of the dispute exceed the threshold amount can you make a claim under your legal expense insurance.

Conflicts arising fromtraffic accidentsare very common. For example, you might be hit while riding a bicycle, walking, or driving a car or moped. This can lead to a dispute over who is at fault. With legal expense insurance, you’ll receive legal assistance to prove your innocence and hold the other party liable. Your insurer will also help you recover damages from the other party.

It’s always possible that you might find yourself in a dispute with your employer. For example, you might disagree with the reason for yourtermination, contractual issues might arise, or there might be a dispute regarding maternity leave or retirement. Disagreements may also arise regarding the amount of your benefits from the UWV.

In the event of alabor dispute, your insurer will help you resolve the issues. It’s reassuring not to have to face this alone, because it can sometimes be quite difficult to stand up to your employer in a dispute. For individuals, legal expense insurance offers a solution in such situations.

Divorceis, of course, never pleasant. It often involves a great deal of sadness and sometimes anger. This can easily lead to conflict, for example, regarding the children, the home, savings, and other assets. Divorce is excluded from most legal expense insurance policies because it involves a dispute between two insured parties under the same policy.

In some cases, mediation is covered by insurance. Mediation is a form of arbitration conducted by an independent third party to help you and your partner reach an agreement. The mediator considers the wishes and feelings of both parties and helps them when negotiations stall. This often prevents a lot of frustration and arguments.

Neighbor disputes can sometimes get pretty heated. This is evident from the TV show *De Rijdende Rechter*. While a little neighbor drama is entertaining when you’re watching it on TV, it’s not so fun when it happens to you. There are countless situations that can lead to conflict between neighbors.

For example, disputes may arise over property lines, overhanging vegetation, rights of way, noise pollution, the installation of a hedge or shed, construction damage, or renovation plans. If the conflict has been going on for some time or emotions are running high, it can be difficult to resolve the issue together. Legal expense insurance offers a solution in such cases.