All about this insurance: Legal expenses insurance
Do I need legal expenses insurance in Germany?
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Is legal expenses insurance worth it in Germany?
In short
It pays off mainly for employees, tenants and drivers, because a dispute at work, with your landlord or after a car accident quickly costs several thousand euros. A package of legal expenses insurance (Rechtsschutzversicherung) often costs EUR 300 to 500 a year. Union members, or homeowners without a car, often need it only in part or not at all.
What it costs
Guide figures from published tests and tariff examples, packages for private, work and traffic.
| Example | Typical range |
|---|---|
| Package for a family with two children, EUR 150 deductible | about EUR 251 to 978 a year |
| Single, age 30, four modules, EUR 300 deductible | about EUR 25 to 32 a month |
| Family with the same modules | about EUR 32 to 40 a month |
Guide values as of September 2026. The lawyer's fees in the example are guide values from our quoting practice; we obtain the exact quote for you.
Worked example
Employee is dismissed
Claim before the labour court in the first instance, with your own lawyer.
| Your own lawyer's fees | about EUR 2,000 to 4,000 |
| Deductible | EUR 150 |
| Yearly premium for a package | about EUR 300 to 450 |
A single dispute costs as much as several years of premiums.
Who it pays off for
A labour court case about a dismissal easily costs a few thousand euros in the first instance, and there each side pays its own lawyer, even if it wins. This is where the insurance is strongest.
Drivers benefit too: after accidents or fines the traffic module pays for the lawyer and expert reports.
| Situation | Benefit |
|---|---|
| Employee, not in a union | high |
| Tenant | high |
| Driver | medium to high |
| Civil servant or union member | lower for employment law |
| Homeowner without a car | rather low |
What is different if you come from abroad
Legal expenses insurance is far more common in Germany than in the UK or US. One reason: German lawyers may only work for a success fee in exceptional cases, so the no win, no fee model you may know is rarely available. Lawyers' and court fees follow fixed scales, which makes costs predictable and insurable.
You are free to choose your lawyer, including one who speaks English. Court proceedings are held in German, though. Disputes about visas and residence permits are usually not covered, and cover outside Europe is often limited. Policies commonly run for at least a year and renew automatically unless you cancel in time.
What it does not pay
Divorce, disputes about building a house or buying land, and investments are usually excluded or only covered for an initial consultation.
A dispute that began before the policy started or during the waiting period is not covered. If you only sign up once trouble starts, you get nothing.
When you do not need it
Trade union members often already have legal protection for employment law, and members of a tenants' association have partial cover for rental law.
If you have savings and rarely get into disputes, you can carry the risk yourself. Premiums over ten years quickly add up to several thousand euros.
Step by step
- Work out which areas of your life carry a risk of disputes.
- Check whether a union or tenants' association already protects you.
- Choose only the modules you need.
- Set a deductible.
- Sign up before a dispute is on the horizon, ideally soon after you arrive.
Checklist
- Employment law included if you are employed
- Rental law included if you rent
- Traffic included if you drive
- Free choice of lawyer
- High or unlimited cover
- Clear rules for disputes abroad
Common mistakes
- Signing up only once trouble has started
- Paying for modules you do not need
- Not knowing the exclusions for divorce and building
- Expecting cover for visa or residence permit disputes
Questions and answers
Frequently asked
Does legal expenses insurance pay for a divorce?
Usually only an initial consultation, not the proceedings.
Can the insurer cancel my policy?
Yes, after several claims in a short time cancellation is possible.
Do I have to use the insurer's lawyer?
No, you can choose your own lawyer. Recommended lawyers are only an offer.
Can I find a lawyer who speaks English?
Yes, especially in larger cities. The proceedings themselves are in German, and translation costs are not always covered.
Is it worth it for retirees?
Without employment law the benefit drops. Traffic and rental law can still make sense.
What is a confirmation of cover?
The insurer's written confirmation that it takes on a case (Deckungszusage). Get it before you go to court.
Sources
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Related questions
How much does legal expenses insurance cost in Germany?
A legal expenses insurance package (Rechtsschutzversicherung) covering private life, work and traffic usually costs EU …
How long is the waiting period for legal expenses insurance in Germany?
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NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker. Statutory disclosure (German) · Updated