In this guide, I explain what legal insurance (Rechtsschutzversicherung) is, what it covers, and when it’s worth it. I also list cheaper alternatives to legal insurance.
Legal insurance is also called legal protection insurance or legal expenses insurance.
What is legal insurance?
If you need a lawyer, legal insurance pays for it. If you go to court, your legal insurance pays for all the legal costs, even if you lose.1
For example, if you have a problem with your landlord, you can talk to a lawyer for free. The lawyer can write a letter to your landlord. If the letter doesn’t solve the problem, you can sue your landlord. Your legal insurance will pay for everything.1
If you don’t have legal insurance, you must decide between paying 200€ per hour2 for a lawyer, or giving up. In Germany, the loser pays for the winner’s legal fees (except with employment law), but if you are not 100% sure of winning, it’s risky. If the case is settled out of court, you still need to pay your lawyer. People often let their landlord or their employer win, because they can’t afford a lawyer. With legal insurance, you can always defend yourself. When people know that you can defend yourself, they don’t mess with you.
What does legal insurance cover?
What is covered
Each insurance policy is different. Usually, you can choose what your insurance covers.
- Getting advice from a lawyer
You can call a lawyer and ask them questions. You can also meet with a lawyer for a consultation. You can always choose the lawyer.3 Many legal insurances also have a lawyer hotline that you can call. - Sending legal letters
A lawyer can write a cease-and-desist letter (Abmahnung) to your landlord or your employer. That often solves the problem. It shows that you can defend yourself. - Suing someone
If you go to court, your legal insurance will pay for your lawyer, and for all court fees. It will pay even if you lose. But your insurance won’t cover you if you have no chance of winning. They will tell you that before you start. - Mediation
Mediation is when a neutral expert helps two people find a solution. Your legal insurance will pay for the mediator. - Your spouse and children
Your legal insurance can cover your spouse for an extra fee. Your children under 18 years old are usually covered. If your children are studying, they are usually covered until they are 25.4
Here are a few examples where your legal insurance can help:
- Problems with your landlord
For example, if your rent is more than the legal limit, if your landlord wants to kick you out, or if they won’t return your deposit when you move out. - Problems with your employer
For example, if your employer wrongly fired you, if they won’t pay you, or if you face discrimination at work. - Problems with the police
For example, if the police wrongly fined you, or if you are wrongly accused of a crime. Intentional crimes like piracy, fraud or murder are not covered. Your insurance can help you contest a fine, but it will not pay a fine for you. - Problems with a business
For example, if your laptop stopped working and the company won’t fix it, or if a gym won’t cancel your membership. - Problem with a government office
For example, if you have problems with the Finanzamt or the Bürgeramt. Immigration problems are rarely covered.40 - Problem with another insurance
For example, if your disability insurance won’t pay, or if you had a car accident and the other person’s insurance won’t pay.5 This is very common: 25% of disability insurance claims are refused.6 - You want to sue someone for damages
For example, a car hit you when you were on your bicycle,7 or someone punched you in the face, and you want to sue them.
What is not covered
- Someone else sues you for damages
If someone sues you for damages that you have caused, your legal insurance won’t help you.8 This is covered by liability insurance (Haftpflichtversicherung). Liability insurance is a lot more important than legal insurance. - Things that happened before you had insurance
You must get insurance before you have a problem. It does not cover things that happened before you got the insurance.2 - Immigration problems
In general, immigration problems are not covered.9 - Divorce, inheritance problems
Usually, these are not covered by legal insurance.10 Your insurance usually covers the first consultation with a lawyer, nothing more.11 If your insurance covers divorces, there is usually a 3 year waiting period before you are covered. - Piracy, theft and intentional crimes
If you get caught pirating movies, your legal insurance usually won’t help you.12 It also won’t help you with murder, fraud, tax evasion and other intentional crimes.13 - Fines
Legal insurance pays for legal costs, not fines. For example, it won’t pay for your speeding ticket.14 If you get a BVG fine, your insurance won’t pay for it. - Self-employment
Private legal insurance does not cover your business activities. For that, you need professional legal insurance (Gewerberechtsschutzversicherung). - Cases that you can’t win
Your legal insurance will not pay to go to court if you have no chance of winning.8
Sometimes, you still get a little coverage for these problems. For example, Getsafe covers consultation costs for online piracy,15 but not going to court. They cover marriage and inheritance, but only for a few hundred euros. They can cover intentional crimes, but that costs more.
Fair use
If you use your legal insurance too much, it can be cancelled.16 If you make 2 expensive claims in less than 12 months, they will often cancel your insurance. They will still pay for those 2 claims, but after that, you are not insured. They will not cancel your insurance because you talked to a lawyer,17 only for expensive things like going to court. They can even cancel your insurance for no reason, but this rarely happens. In any case, they will cancel the insurance after everything is over, not in the middle of a court case. This is true for all insurers.
How to use your legal insurance
The waiting period
You can’t use your legal insurance as soon as you get it. There is usually a 3 to 6 month waiting period (Wartefrist).18 The waiting period is shorter for certain problems (traffic, taxes), and longer for other problems (work, divorce).
You must get insurance before you have a problem. It does not cover things that happened before you got the insurance.2
How to use your legal insurance
- Contact your insurer
Ask your insurance company for a cover note (Deckungszusage). This confirms that the insurance will cover your legal costs. You can request it yourself, or your lawyer can do it for you. The insurance company has 2 weeks to give it to you.19 Your insurance might refuse to cover you if they think you can’t win. This is why you should ask for a Deckungszusage before you see a lawyer. - Choose a lawyer
You can always choose the lawyer.3 Your insurance can also recommend a lawyer. Sometimes, if you choose the recommended lawyer, you pay a lower deductible (Selbstbeteiligung).20 - Get a first consultation
Talk to a lawyer. During the first consultation (Erstberatung), your lawyer will listen to you, and tell you what you can do next. - Solve the problem
Now, you know your options, and you know that your insurance covers the cost. You can do what you need to do, and solve your legal problem.
How much does legal insurance cost?
16€ to 24€ per month.21 The cost depends on a few things:21
- What your insurance covers
You can choose if your legal insurance covers traffic problems, work problems or apartment problems. If your legal insurance covers more things, it will be more expensive. - What deductible you choose
If you choose a higher deductible (Selbstbeteiligung), your legal insurance will be cheaper. If you need to use your insurance, you must pay part of the costs yourself. The deductible is usually 150€ to 500€. Usually, there is no deductible for a first consultation with a lawyer. Some insurances have a variable deductible. For example, it can be 300€ in the first year, and 0€ after 1 year. - If you pay every month, or every year
If you pay for the whole year, your insurance will be cheaper. - Your age, location, occupation and marital status
Is legal insurance worth it?
Legal insurance is not as important as liability insurance, but it’s really good to have.22 46% of German households have legal insurance.23 The lawyers I work with recommend all immigrants to have it.41
If your landlord or your employer takes advantage of you, you must decide between fighting and giving up. Simple legal cases cost up to a thousand euros. Court cases cost thousands of euros. If you lose, that money is gone. It’s a big risk.
With legal insurance, you don’t care. The insurance pays for everything. You can always defend yourself, because it costs you nothing. You just call your lawyer and they take care of it.
You can also call a lawyer just to ask a few questions.24 Some legal insurances cover checking a contract before you sign it.43 This is useful if you have a German contract, but you don’t speak German. You can solve problems before they happen. If you talk to a lawyer once or twice per year, it’s already worth it.
If you don’t need full legal insurance, look at cheaper options like tenant associations (Mieterverein) or legaltech like Conny.
How to choose legal insurance
To choose legal insurance:
- Talk to an insurance broker
An independent insurance broker can help you pick the best insurance from multiple companies. Their help is free, because they are paid by commission. - Use a comparison website
Tarifcheck helps you compare insurances. It’s only in German. - Read your insurance policy
Every insurance is different. You must understand what your insurance covers. If you don’t speak German, choose an English-speaking insurer. Feather and Getsafe speak English. They both sell the same legal insurance from Roland.42
What to cover
You can choose what your legal insurance covers.
- Problems with your landlord (Mietrechtsschutz)
If you don’t trust your landlord, this can be very useful. If you only need this protection, just join a tenant association (Mieterverein). It’s cheaper. Mietrechtsschutz alone is not really worth it.25 - Problems with your tenants (Wohnrechtsschutz)
If you have an apartment, and you rent it to someone else, this can be useful. If you only need this protection, you can join a landlord association. It usually includes legal assistance.26 - Traffic problems (Verkehrsrechtsschutz)
If you drive or cycle a lot, this can be very useful. If you have a traffic accident, your legal insurance can help you sue the person who caused the accident.27 It can also help you if the other person’s insurance insurance won’t pay. Some car insurance policies already include this protection. If you caused the accident, your car insurance (for your car) or your liability insurance (for your bicycle) already cover the costs.28 - Work problems (Arbeitsrechtsschutz or Berufsrechtsschutz)
If you don’t trust your employer, this can be very useful. If you have a problem with your employer, your legal insurance can help you. - Other problems (Privatrechtsschutz)
This is covered by default. This includes problems with your insurance company, the tax office, and businesses. - Legal hotline (telefonische Rechtsberatung)
Most legal insurances give you free access to a legal hotline. If you have a question for a lawyer, call this hotline and they will help you.
Coverage limit
Your legal insurance should cover you for at least 300,000€.8 Clark recommends at least 500,000€, plus 25,000€ for problems in other countries.29 Some insurances have unlimited coverage.
Remember that if you use your insurance too much, they can cancel it.
Waiting period
Usually, you must wait 3 to 6 months before you can use your legal insurance.30 Some policies do not have a waiting period, but they are very expensive.31 Sometimes, the waiting period is different for certain things. It’s usually shorter for tax problems, and longer for work and apartment problems.32
Your insurance does not cover existing problems, even if there is no waiting period.33 You must get legal insurance before you need it. If your house is on fire, it’s too late to buy house insurance.
Deductible
You can choose legal insurance with a deductible (Selbstbeteiligung). When you have a deductible, your insurance is cheaper.34 Usually, the deductible is less than 500€. Check24 recommends a 150€ deductible.35
Some insurance policies have no deductible for first consultations. That means that you can talk to a lawyer for free,19 and pay no deductible. If you go to court and you win, the losing side pays for your legal costs, including your deductible.19
Combined with other insurances
Do not get your legal insurance from the same company as your other insurances.36 If you have a problem with your other insurances, you will sue the same company that sold you legal insurance. They might refuse to help you.
English support
If you don’t speak German, Feather and Getsafe offer legal insurance, and they speak English.37 Feather has an English-speaking support hotline.
Insurance comparison websites
Tarifcheck lets you compare legal insurances. This website is only in German.
Alternatives to legal insurance
For apartment problems, join a tenant association (Mieterverein). Conny can help you lower your rent. Mineko can check your utilities bill.
For quick business or immigration questions, try Alexander von Engelhardt’s legal hotline: 0900 1 5293 6611. It costs 2€ per minute.
If you have a low income, you can apply for legal help (Beratungshilfe) at the local Amtsgericht.38 You will get a certificate (Beratungshilfeschein) that pays for your legal costs. If you get Bürgergeld or Sozialhilfe, or if you are an asylum seeker, you are eligible.39 You usually need to speak German.
Summary
- It covers your legal costs. It’s very useful if you don’t trust your landlord or your employer. You can defend yourself, and not worry about the legal costs.
- It’s not essential, but it’s really good to have. If you don’t trust your landlord or employer, I recommend it. Liability insurance is a lot more important.
- You must get it before you need it. If you already have a problem, it’s too late to get liability insurance.
- You choose what it covers, and control how much it costs.
- It rarely covers certain things like intentional crimes, divorces and immigration.
- There are cheaper options. It depends on what you need.
Sources and footnotes
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ra-kanzlei-hamm.de, toytowngermany.com, storage.googleapis.com ⤴
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Fiona Macdonald, immigration lawyer (February 2023) ⤴
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Rotwang Law (July 2023) ⤴
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Last checked in November 2023 ⤴