Understanding Legal Expense Insurance
Legal expense insurance is important when thinking about pursuing a claim for personal injury compensation. There are a number of options available to you, and this short guide will explain what the differences are and how Accident Compensation 4 U can help.
Understanding Legal Expense Insurance
Pre-event Legal Expense Insurance
After-the-event Legal Expense Insurance
Legal Expense Insurance and No Win No Fee
Legal Expense Insurance and Private Claims
Understanding Legal Expense Insurance
You will have probably come across the term Legal Expense Insurance. If you own a car for example, you will have been asked whether you would like to apply for it as an added option on your policy. As its name suggests, legal expense insurance is designed to protect you against the possibility of you losing your case. If this happens, you might become liable for paying both your solicitor's disbursements and your opponents legal costs. If you have legal expense insurance, your insurer would pay for all of these, ensuring that you are not left out of pocket.
There are two forms of legal expense insurance: pre-event and after-the-event. The "event" they refer to, is you deciding to bring legal action against an individual or an organisation.
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Pre-Event Legal Expense Insurance
You will usually purchase pre-event legal expense insurance (usually referred to as just "legal expense insurance") at the same time as your car or home insurance. In some cases it is optional and you have to add it to your insurance package, in others it comes as part of the insurance itself.
Pre-event legal expense insurance is usually pretty affordable as the insurance company evaluates the likelihood of you deciding to take legal action in any particular year (these policies usually last for a period of 12 months). The insurance company considers this to be unlikely and it is therefore a low risk insurance policy.
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After-The-Event Legal Expense Insurance
As its name suggests, after-the-event legal expense insurance is purchased after you have decided to take legal action. Because of this the insurance premium can often be quite expensive as the insurance company now evaluates the likelihood of your case succeeding and the risks are much higher.
If you do not have legal expense insurance as part of one of your insurance policies, don't rush to purchase an after-the-event policy, Accident Compensation 4 U will arrange this for you.
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Legal Expense Insurance and Accident Compensation 4 U's No Win No Fee Agreement
Usually, if a judge finds against you in a legal action, you would be responsible to pay both your solicitor's and your opponents legal expenses and fees. In a conditional fee agreement (or no win no fee agreement), you would only have to pay your solicitor's disbursements (i.e. their expenses, not their fees) and you will also be responsible for your opponent's legal expenses and fees.
If you have legal expense insurance, then your insurer would take care of all this. If you don't have legal expense insurance as part of your car or home insurance, then your Accident Compensation 4 U appointed solicitor will purchase an after-the-event policy on your behalf. If you lose your case, the insurer will effectively pay for everything including the insurance's premium. If you win your case, then your opponent will pay for your solicitor's fees and disbursements that include the insurance premium.
This means that whatever happens you are completely protected: you can pursue your claim without fear of whether you might face a bill at the end of it should your claim be unsuccessful.
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Legal Expense Insurance and Private Claims
If you are pursuing a private claim (not on a no win no fee basis), and you lose your case, you will be responsible for your solicitor's fees as well as their disbursements. Legal expense insurance, however, works in the same way and will cover your solicitor fees as well as their expenses.
The use of pre- or after-the-event insurance means that bringing a claim for personal injury is effectively risk free and cost free as far as you are concerned. During your initial interview with your appointed solicitor, if you have any questions with regards to funding your claim or insurance make sure you ask them.
If you would like more information, why not contact our FREE claim assessment line on 0800 0371260 or submit details of your accident online.
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