When does it make sense and for whom?

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Lerato Khumalo

In Germany you can insure yourself against almost everything – including private or professional disputes. But who is it really worth it for?

Lawyers’ fees, court costs, compensation for witnesses – a legal dispute can quickly become expensive. If you have legal protection insurance, it will cover the costs up to the agreed insured sum. But does a degree really make sense?

For Kai Fürderer from the Society for Quality Testing, the matter is clear: “If you’re not argumentative, you don’t need legal protection insurance.” Firstly, there are often cheap alternatives and secondly, many disputes can be settled without having to go to court.

“If you don’t hire a top lawyer from the big city, the advice doesn’t cost as much as you think. These are often hourly rates that you’re familiar with from the car repair shop.” The bottom line is that most people would get a cheaper deal if they paid for the lawyer’s hours out of their own pocket instead of paying 200 to 300 euros every year for comprehensive legal protection insurance.

“In the end, the question is always: Are contributions and costs covered in a healthy relationship?” says Fürderer. For example, anyone who is arguing with their employer over a severance payment equivalent to one month’s salary may have already spent more on legal protection insurance than they can recoup from the severance payment.

Before taking out a degree, everyone should also check whether they are already covered in other ways – for example as a member of a trade union or with the ADAC when it comes to legal traffic protection. “If there is a good works council in a company, that is often enough to get your concerns through,” says Fürderer.

Tenants, in turn, can contact a local tenant association if they have problems with their landlord. These also have the advantage that you will receive advice even if the dispute has already arisen. However, anyone who takes out rental legal protection insurance usually has to wait a certain amount of time before the benefits take effect.

Anyone who still decides to take out legal protection insurance, regardless of whether it is personal, rental, professional or traffic legal protection, should read the small print beforehand. Consumer advocates recommend an insured sum of at least 300,000 euros. Also make sure that the so-called final decision is part of the contract.

This is important if the insurer rejects legal protection due to a lack of prospects of success. You can then instruct a lawyer to provide a reasoned opinion on the chances of success. The insurer must bear the costs for this. The following deciding decision is binding for both contractual partners.