LEGAL PROTECTION INSURANCE

What would you do if you have a car accident and the other party’s liability insurance refuses to pay or you’re suddenly faced with unfair dismissal from your job? Legal actions have increased dramatically over the past few years; there are more than two million civil cases and in excess of 500,000 industrial tribunals annually in German courtrooms. With over 2.4 million traffic accidents every year and 35 million rental properties it’s no surprise that legal cases are increasing. The high standard of living in Germany means that the amounts disputed in courtrooms are increasing too and it’s these costs that are used as the basis for all court costs and legal fees. In this situation, it’s good to be able to rely on a strong insurance partner who can support you legally and who will cover your legal costs.

The Costs of Losing a Legal Battle:

Your legal claim may well be justified but actually getting justice is quite another matter and if you lose your case, not only will you have to pay the court costs but you’ll also be billed for all legal fees, which includes those of other party! Below is a table showing the average cost of a lost civil action, so court costs, own and opposing legal costs.

Amount Disputed Initial Trial Appeal Final Appeal
€ 1,000 € 682.60 € 1,475.32 € 2,511.44
€ 5,000.00 € 2,288.45 € 4,939.24 € 8,457.17
€ 10,000.00 € 4,090.70 € 8,820.81 € 15,119.96
€ 25,000.00 € 5,849.20 € 12,632.03 € 21,661.30
€ 50,000.00 € 8,605.45 € 18,587.28 € 31,883.05
€ 100,000.00 € 12,068.45 € 26,236.04 € 45,006,77
€ 250,000.00 € 19,764.95 € 43,242.54 € 74,186.27
€ 500,000.00 € 29,772.95 € 65,375.98 € 112,161.95
€ 1,000,000.00 € 44,097.95 € 96,896.98 € 166,248.95

What Kind of Legal Protection Insurance Do I Need?

It’s possible to arrange an insurance package which will provide unlimited cover for:

Traffic Law: Someone rear ends you at a traffic light but they say you reversed into them

Employment Law: Your employee terminates your employment due to “cut backs”

Personal Law: The dream holiday you booked turns out to be a nightmare with filthy accommodation and no sea view

Residential Law: The walls in your apartment are damp and despite numerous complaints to your landlord, he’s done nothing about it

Criminal Law: Your son is charged with the possession of illegal drugs
Your legal protection policy will also include a 24 hour hotline for legal advice from a specialist, independent lawyer; fast, online assistance from qualified lawyers; mediatory services and worldwide cover.

Do I really need legal protection insurance?

If I’m guilty as charged, then legal protection won’t help me anyway

It makes a big difference to lose your driving license for just one month instead of six or to receive a fine of Euro 200 instead of Euro 500 and that’s where a lawyer can assist you

If I win my case, then the other party will cover my legal costs

In industrial tribunals, each party must pay their own legal costs, irrespective as to why and by whom the case was brought to court

I’m a good driver, I don’t need legal protection for traffic violations

Sure, you’re a great driver and you’ve obviously always been lucky but you’re not responsible for other road users and you certainly can’t influence the way they drive. There are over 2,300,000 traffic accidents a year in Germany

I’m a peaceful individual and avoid confrontation

Unfortunately, you can only live in peace if your fellow citizens are prepared to do the same too!

I can’t afford legal protection insurance, it’s too expensive

If money is short, you definitely need legal protection and the premium is a lot lower than any legal fees you could be charged.

I’ve a personal liability policy

That’s not going to help you if your employer has given you notice.

You can still lose a legal case even if you have legal protection insurance

True, but your insurance will cover all the legal and court costs that you’d otherwise have to pay,

I’m friends with a lawyer

Super, but will your friend cover your court costs and all resulting legal fees from the case?