There are of course various reasons why someone might switch legal expenses insurance, but one thing is certain: switching often makes it possible to save money. There are, of course, a number of points to look out for. WA.nl explains how it works and what to pay attention to. This page describes the situation in the Netherlands.
Important questions before switching legal expenses insurance
When you switch legal expenses insurance, questions will naturally come to mind. For that reason, this article covers a few important questions, with the frequently asked questions at the bottom of the article.
Why switch to a different legal expenses insurance policy?
There can of course be various reasons for this. Sometimes people switch because another insurer is cheaper. That is certainly possible, because there are quite large price differences. Other times, someone switches because they are dissatisfied with the legal assistance they received. That is possible too, but bear in mind that legal expenses insurers rely on other parties for legal help. The new insurer may therefore offer exactly the same legal help.
Sometimes the insured is also forced to switch to a different legal expenses insurance policy. If claims are made too often and the insured is no longer economically attractive to the insurer, the insurer may also cancel the insurance contract. Then, of course, there is nothing else for it but to look for a new legal expenses insurer.
When to switch to a different legal expenses insurance policy?
During the first 12 months after taking out legal expenses insurance, it is usually not possible to cancel the insurance and switch. There are exceptions, for example when the insurer raises the premium or changes the policy conditions to the disadvantage of the insured.
Once this first period of 12 months has passed, it is possible to switch to a different legal expenses insurance policy. A notice period of one month then applies, which starts immediately. It is of course sensible to cancel only after you have been accepted by the new insurer.
Points to look out for when switching legal expenses insurance
Always check how waiting periods work, because for some types of cover waiting periods are still the rule. And those waiting periods can be as long as three months. Usually you can switch without a waiting period, but only if these parts of the insurance were already covered with your old insurer. A waiting period may apply when a completely new module is added or when extra people are insured. So always play it safe and get enough information in advance.
If there is already an ongoing legal dispute, we also recommend first discussing the situation with both insurers to avoid problems and confusion. Especially if the matter is urgent. In principle, insurers have drawn up an agreement (convenant) for this. Under it, the new legal expenses insurer takes on the case if it has not yet been started with the old insurer. This prevents the two legal expenses insurers from pointing at each other and the insured being left out in the cold.
How switching to a different legal expenses insurance policy works
Switching to a different legal expenses insurance policy is not difficult. First, the old insurance contract must be cancelled. There are no formal requirements for this, but we still recommend doing it in writing and by registered post. This can prevent a lot of problems. In addition, a new insurance contract must be taken out with a new insurer.
In practice, these two steps often go together. A new contract is taken out and, together with the acceptance by the new insurer, the old insurance contract is cancelled. The new insurer often offers some help with this as well. Ask about it in any case, because insurers like to go that little bit further for new customers.
Read also: Waiting period for legal expenses insurance.
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Frequently asked questions about legal expenses insurance
Who decides whether or not legal proceedings may be brought?
The insurer. The insurer assesses whether it is appropriate to have the case handled by a lawyer.
Which costs does legal expenses insurance cover?
If the insurance provides cover, the insurer will pay the legal costs, the costs of external lawyers and the costs of other experts and loss adjusters.
What is the threshold (franchise) in legal expenses insurance?
The threshold (franchise) is a minimum amount below which the insurer will never handle a claim. If the claim has a higher value, the claim can be handled.
Are conflicts abroad also covered?
This differs from insurer to insurer. In the Netherlands there is always cover, but outside the Netherlands it can differ per module or type of cover. Very often the cover is limited to Europe, but sometimes there can be worldwide cover. This is the case, for example, when recovering compensation for personal injury after a traffic accident. Ask the insurer or check the policy conditions for more information.
How often may I use my legal expenses insurance?
That depends on the insurer. Sometimes an insurer's policy conditions do not even make clear what policy it applies, or the insurer simply does not communicate openly about it. Now and then the insurer will warn you in advance, but it remains a grey area. In general, anyone who clearly submits claims more often than average will be turned away.