What Is Legal Cover on Car Insurance?

Legal cover in car insurance is an optional addition designed to assist with legal costs that may arise from a car accident. It serves as a supplementary layer of financial protection beyond a standard car insurance policy. This coverage specifically addresses legal fees, rather than directly compensating for damages or losses, ensuring policyholders have access to legal representation and support when navigating complex legal situations following a vehicle incident.

Understanding Legal Cover in Car Insurance

Legal cover is typically an optional add-on to a car insurance policy. Its primary purpose is to cover the legal costs associated with pursuing a claim or defending against legal actions that are not directly handled by the standard provisions of your auto insurance. While liability insurance provides a “duty to defend” if you are at fault in an accident and sued, legal expenses insurance extends protection to scenarios where you need to initiate legal proceedings or defend against specific motoring offenses.

This type of coverage becomes relevant in situations where you are not necessarily at fault but incur expenses not covered by your primary policy or need to recover losses from another party. For instance, it can help when you need to claim for uninsured losses, such as a policy deductible or lost income, from an at-fault driver. It also provides a safety net for legal fees if you face prosecution for certain driving infractions linked to an accident.

What Legal Cover Typically Includes

Legal cover typically encompasses a range of specific legal costs and scenarios, providing financial support for various post-accident legal needs.

Uninsured loss recovery: Helps policyholders reclaim expenses not covered by their main car insurance policy when an accident was not their fault. These expenses can include your policy deductible, loss of earnings if an injury prevents you from working, medical costs exceeding what health insurance or Personal Injury Protection (PIP) might cover, and even travel expenses if your vehicle is unusable.
Personal injury claims: If you or your passengers sustain injuries in an accident, legal cover can fund the legal action required to seek compensation from the at-fault party. This ensures that the legal fees for pursuing such claims, which can involve extensive legal work, are covered up to a specified limit. These limits often range from tens of thousands of dollars, providing substantial coverage for attorney fees and court costs.
Legal defense for motoring offenses: If you are prosecuted for a driving offense related to a car accident, such as speeding or other traffic infractions, legal cover can help pay for your legal representation.
Legal helpline: Many legal cover policies provide access to a legal helpline, offering confidential advice on various motoring-related legal matters.

How to Use Your Legal Cover

The initial step is to promptly notify your car insurance provider or the separate legal cover provider about the incident. Having your policy documents readily available can help streamline this process, as they contain essential details like policy numbers and contact information.

Following notification, you will need to provide a full account of the incident. This includes details such as the date, time, and location of the accident, along with any supporting evidence you have collected. Photographic evidence of vehicle damage or injuries, witness statements, and police reports are examples of documentation that can strengthen your claim.

Your insurer will then typically facilitate the appointment of an attorney to handle your case. Depending on the policy terms, they may either assign a lawyer from their panel of approved firms or allow you to choose your own legal representative.

It is important to cooperate fully with the appointed legal team, providing any requested information and following their advice throughout the legal process. This collaboration helps ensure your claim is managed effectively.