Author Topic: Legal Cost Insurance, keep it or cancel it?  (Read 995 times)

Lordy

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Legal Cost Insurance, keep it or cancel it?
« on: June 18, 2016, 04:43:22 AM »
Hello fellow Mustachians,

yesterday I was going through my insurances and gave each of them some thought. Ordered by fee they are:

- Legal cost insurance (traffic, renting, work): 20 EUR/month
- Dental insurance (add on to public healthcare): 14 EUR/month
- Liability insurance (breaking stuff/hurting people): 6 EUR/month
- Travel health insurance (outside EU): 1 EUR/month

Travel health and liability insurance are no-brainers given the potential costs and the low fees. I believe that Dental insurance is money well spent given that public healthcare covers only the cheapest treatments and materials. As for legal cost insurance, I am unsure wether I should keep it. I initially signed up for it over 10 years ago when rumors where going around that my then employer would lay off a bunch of people. The lay-offs came but I was not affected. Since then I used it only once to contest a Pay-TV contract.

What are your thoughts on Legal Cost Insurance? Is it worth it? Would you keep it?

Cheers, Lordy

ohsnap

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Re: Legal Cost Insurance, keep it or cancel it?
« Reply #1 on: June 18, 2016, 11:25:23 AM »
Drop it.

We carried a legal insurance plan about 15-18 years ago (only because a friend sold the plan).  We dropped it after maybe 2-3 years, because the first time we tried to use it, we couldn't get the referred attorney to do anything.  The amount in dispute was less than $300, so he wouldn't write a letter or give us advice re: small claims or do ANYTHING.  He told us to "forget about" the $300.

We never did get our $300, and the $500-$700 in premiums we'd paid for the plan were lost also.  (a few years later we won and were paid for a judgment in small claims court for >$1000, now the internet can tell you how to do this)

If your liability insurance is sufficient, they will pay for legal costs if you are sued.  Other than that, I don't worry about legal costs because I think I'm very unlikely to incur them.