Damnit it - why do I have a memory like a sieve… Time to renew car insurance and the dreaded ‘do you want legal cover’ question pops up… and I know TC has already explained it more than once as to ‘why not’ but I can’t remember it and all the websites make it look soooo essential for peace of mind…
The search function doesn’t make it easy to find either!
I think I have posted a comment abou this before, but the short answer is that legal expenses insurance is the biggest waste of space going.
Although appearing to be free the cost of LEI is often swallowed up in the overall cost of the policy. Because the solicitors are appointed by the insurers
who often work for reduced fees in order to get the work, they are often of inferior quality and you the policy hodler have no say over who is
appointed, and it may be someone at the other end of the country.
However, everyone is entiltled to have access to free representation and this where the Conditional Fee Agreement (no win no fee) scores over Legal expenses insurance.
Under a CFA, you choose who you want to represent you and once you have selected your lawyer, your case is risk assessed. On acceptance, your solicitor will cnsider taking out what s called an after the event or ATE insurance policy with protects you in the event that you lose your case and therefore avoids you ending up with massive legal costs.
In the event that you win, you will get your compensation and the cost of the insuranceis paid for by the third party.
It is a guaranteed way of having lawyers you want at no cost.
In my opinion, LEI is a con, and in 99% of cases you can get better representation by going under the CFA than using LEI.
LEI will and does work in some cases, particularly in non motor and non personal injury cases, but for something like a motorcycle accident or serious injury
cases, private law firms every time.
The other point is, that not all LEI solicitors belong to the appropriate professional associations such as APIL, CPIL, The Law
Society Personal Injury Panel (It is still called that for the moment) Headway, and I know of one solicitor dealing with a fatal who is
actually a property solicitor, and he was appointed by DAS insurance under LEI.
Personally, I never have LEI on my motoring policies because I know how it works, but then I do have inside knowledge.
Going on from that
In the issue dated April 2001, the Insurance Ombudsman states “… we consider that insurers should take a pragmatic approach. Where one firm is already familiar with all the background and is dealing satisfactorily with the case, it will generally not be sensible for the insurers to involve another firm, unless, for example, the new firm has superior expertise …”.
In March 2003 the Ombudsman also provided the following clear guidance, namely “… we consider that insurers should also agree the appointment of
the policyholder’s preferred solicitors in cases that involve significant boundary or employment disputes (especially if there is a considerable history to investigate and assess)
What that means is that you as the policy holder can choose whoever you want to represent you in the event that you have LEI, and whilst they will try it on, they cannot refuse to instruct who you want to represent you but they won’t tell you that. But in any case, you are still better off having your case funded by a CFA.
Hope that answers the question for you?
Brilliant insight. Thanks T.C that really helps me and I did not even ask the question!
I asked and it was free of charge on my renewal so I took it anyway.
Imo the crucial question is breakdown recovery in case of accident
I asked and it was free of charge on my renewal so I took it anyway. Imo the crucial question is breakdown recovery in case of accident silveR6They say it is free, but you are still paying for it. They told me mine was free. I told them to take it off, premium dropped by a further 30 quid.
I actually asked if the premium would drop they said no?
PS you’ll be pleased to know our little conversation has resulted in final settlement been agreed. Definitely owe you a drink or two 
PS you'll be pleased to know our little conversation has resulted in final settlement been agreed. Definitely owe you a drink or two 😁 silveR6I am delighted, so long as it is a settlement that you are happy with.
And you owe me nothing, I was pleased to be of whatever little help I was able to provide
Take the beer Tony.
