“But I have legal expenses insurance – why won’t they pay?” I usually hear this too late. Legal expenses insurance (Rechtsschutzversicherung) is useful, but it is not all-round protection for every conflict.
The modules
| Module | Typical cases |
|---|---|
| Private | contracts, tradesmen’s invoices, travel, damages claims, social law |
| Employment | dismissal, warnings, references, unpaid salary |
| Traffic | accidents, fines, licence withdrawal – as driver, cyclist, pedestrian |
| Housing | rent increases, deposits, service charges – as tenant or owner-occupier |
The self-employed need separate business legal cover.
What it pays
Up to the agreed sum: your lawyer’s statutory fees, court costs, court-appointed experts, the other side’s costs if you lose, and often mediation. Not fines, penalties or whatever you end up owing. The consumer advice centres (Verbraucherzentrale) recommend at least 300,000 euros, better one million or unlimited.
Waiting period
Most modules apply only three months after the start, some insurers require six. The cause of the dispute must arise after that. Usually no waiting period for traffic cover, damages claims and criminal or fine proceedings.
Deductible
Typically 150 to 250 euros per case; many tariffs waive it if you use telephone advice or mediation first.
What is NOT covered
- Construction and construction finance – almost always excluded.
- Family and inheritance law – usually only an initial consultation.
- Capital investments – mostly excluded in newer contracts.
- Intent – no defence costs for deliberate crimes.
- Defending damages claims against you – that is liability insurance.
- Pre-contractual causes.
Cover confirmation and prospects of success
Report the case first; the insurer issues a cover confirmation (Deckungszusage). It may refuse if the case has no reasonable prospect of success. Then the contract must provide an expert procedure or comparable impartial process (§ 128 VVG). In the common Stichentscheid, your own lawyer’s reasoned opinion binds the insurer, at its expense. If the insurer fails to inform you of this right, your claim is deemed accepted.
Free choice of lawyer
You may choose your lawyer freely (§ 127 VVG). The insurer pays statutory fees only; a higher agreed fee is your own cost.
Cancellation after a claim
If the insurer wrongly refuses a case, you may cancel within one month. The insurer may cancel after paying for at least two cases within twelve months (model conditions ARB). See notice periods.
How to proceed
- Go through your life areas: employee? tenant or owner? car?
- Read the conditions: waiting periods, exclusions, sum insured, Stichentscheid.
- Choose the deductible deliberately.
- Clarify cover before every lawyer appointment.
- When switching, let the waiting periods overlap.
General information, not legal, tax or investment advice. Sources: German Insurance Contract Act (§§ 127, 128 VVG), General Legal Expenses Conditions (ARB 2021, GDV model conditions), GDV consumer portal (01/2025), consumer advice centres (Verbraucherzentrale, 08/2026) – as of October 2026. Does your policy fit your everyday life? Get in touch.
