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[D65]Day Car Insurance Cover

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Sometimes it's just not enough to be insured, as Simon, our accountant, found out recently. He loves his car, a BMW 7 Series with metallic silver paint, and thinks of it as one of the family. So he made sure when arranging his insurance that he had every angle covered, and he chose to get the optional extra of legal expenses cover.

This optional extra doesn't add much to the premiums, but it can make a real difference in the event of an accident or claim. Even comprehensive insurance doesn't cover everything. So when Simon's car was hit in the back at the traffic lights a few months ago, he made the most of the extra capabilities that the legal cover gave him.

For example, Simon works as a self-employed accountant. If he's not working then he doesn't get paid. The BMW's repairs were all covered by his comprehensive insurance and the paintwork would soon be restored to its former glory, but what about Simon and the fact that his wrist was broken in the accident?

Thanks to the legal cover, the processes of compensation for Simon were soon underway, and all at no extra cost. For just ?2 a month extra on his premiums, Simon's legal advisers organised a compensation payout for his broken wrist. Simon was also unable to go back to work for a month so he would not be receiving any pay. Again, the legal cover stepped in and as we speak, negotiations are in the final stages to ensure that he receives compensation for his loss of earnings.

The whole point of this type of cover is that if you were not at fault in the accident, you can receive compensation for various issues that will inconvenience you. In Simon's case, this was loss of earnings and personal injury. For others, it may be that they can use the cover to rent a car while their car is being fixed at the garage. Not all people's car insurance provides provisions for a hire car. With legal expenses cover, you don't have to suffer such high levels of inconvenience, and you're not out of pocket.

As with any type of insurance, you don't appreciate it until you actually have to make a claim. Having legal expenses cover makes it all so easy, as all you need to do is complete the claim form then sit back and wait for the insurer to send you the settlement cheque when the matter has been negotiated. You may need to talk to the solicitor assigned to your case, but your involvement will be minimal. If the case has to go to court, you may not necessarily have to attend. The process will run very smoothly and you can be sure that your insurer will do everything they can to get a satisfactory outcome.

When you buy your car insurance next time, look out to see if it's included automatically, or if you need to get it as an extra. Because most of the insurance policies sold on the Internet are focusing on being cheap, they often won't include legal expenses cover in the initial quote, as it would affect the premium. So be sure to select it as an extra when you get the opportunity.

Prices vary for this type of cover from insurer to insurer. They range from ?17.85 per year with More Than to ?24 per year with Budget ? so it's not going to break the bank. Not many insurers include it for free, but Admiral is one of the companies that does.

So don't forget to get legal expense cover when the time comes. Disputes can be long and complicated and payouts can add up to millions of pounds, in which case you will really benefit from making this simple and cheap choice.

Peter, our freelance journalists doesn't take kindly to people driving into his beloved car. No, he doesn't use his fourteen stone of gym-honed muscle to exact retribution nor is he into road rage. Of course he's got his car comprehensively insured but he's also covered another way. He's got legal insurance. He included in his car insurance as an optional extra. This extra cover allows him to claim for costs and losses excluded covered from normal comprehensive and third party policies. So four months ago when his car was whacked from behind at the traffic lights, the legal profession swung into action! Not for free you understand, after all who's heard of a solicitor labouring for free? No, but it was free to Peter – his insurance company paid all his legal costs.

Whilst the garage appointed by his insurer made a beautiful job repairing his bent MX5, his comprehensive policy didn't normally cover claims for personal injury or loss of earnings. So the extra £2 a month Peter forked out for legal expense cover, became money well spent. He's already received compensation for the broken wrist he suffered and negotiations for his loss of earnings are well advanced. One-handed journalists aren't much use in our office so he took a month off!

Legal expense insurance assists policyholders to claim back losses and compensation where the accident wasn't their fault. The losses can include the cost of hiring a replacement car whilst yours is in the garage and, for those not comprehensively insured, the costs of having your car repaired. As in Peter's case, legal expense insurance will also fund claims for personal injury and loss of earnings.

Cover for legal expense is one of those insurances that's under rated until it's called on. The insurer will run the claim for you and sends the settlement cheque at the end of the process. All you have to do is record the facts on the legal expense claim form, speak to the solicitor nominated by your insurer, be prepared to answer a few follow-up questions, and sit back. If the case goes to court, they'll represent you and fight your corner – although you may also have to attend.

Most car insurance policies sold on the Internet don't automatically include legal expense cover – it's normally an optional extra. That's because price competition on the net is so fierce that the insurers prefer to keep their headline premiums down as low as possible.

You'll find that the optional cost of legal expense cover does vary from insurer to insurer. For example, More Than comes in at £17.85 per year, Direct Line £19.95, Churchill £21 and Budget £24 per year. Just a few insurance companies such as Admiral, include some legal expense cover for free.

So make sure you don't forget legal expense cover when you buy car insurance. Complicated claims for compensation can drag on your years especially if severe injury is involved, and final settlements can end up in millions.

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Michael Challiner has sinced written about articles on various topics from Finances, Advertising Guide and Quit Smoking. specialise uk financial services including. Michael Challiner's top article generates over 165000 views. to your Favourites.