Legal protection insurance can be helpful – but not all providers keep their promises. What you should do if you are rejected.
Legal protection insurance can be valuable for consumers in the event of damage – either because they are threatened with legal disadvantages from third parties. Or because they want to enforce their rights themselves. But in the latter case, some insurance companies refuse financial support – and not always rightly so, as the magazine “Finanztest” (issue 4/2024) states.
Many people with legal protection insurance ask their providers for a so-called coverage commitment before they take the risk of a legal dispute. With this coverage commitment, the insurer promises to cover the costs incurred in the legal proceedings – which usually only becomes relevant if the plaintiff loses in court. But in some cases, insurers do not give this commitment. The classic objection: the prospects of success are too low.
According to the magazine “Finanztest”, which refers to a corresponding study by law professor Christian Armbrüster of such rejections, insurance companies often make it too easy for themselves. In many cases, the rejection is unlawful. The situation is only clear if the crucial insurance component is missing, for example legal protection for traffic accidents, or if a clause in the insurance terms and conditions refuses to cover the costs of lawsuits brought by the insured, then the situation is clear.
“Finanztest” therefore advises policyholders to have rejections – especially those due to a lack of prospects of success – checked. Either through a report from a lawyer (casting decision) or by an arbitration expert appointed by the Bar Association. If the report confirms that a claim has prospects of success, the insurer must usually take on the case. If the insurer continues to refuse payment, consumers can turn to the insurance ombudsman for arbitration free of charge.
