Is legal insurance a good idea in Australia, yes it is good idea if you are landlord, small business, tradie or frequent driver, as legal disputes can cost $5K to $20K for solicitor $350 to $500 per hour and court $1K to $5K, with legal protection insurance $200 to $400 per year covering $10K to $50K legal costs, paying for itself if one dispute in 12 to 25 years. Legal insurance, also called legal expenses insurance, covers tenancy, employment, property, contract, tax and motoring disputes, costing $200 to $400 per year as add-on to home, landlord or car insurance, covering solicitor $350 to $500 per hour, court and mediation $500 to $2K. For example, landlord with tenant default $10K rent and damage $20K, legal costs for eviction and tribunal $5K, legal insurance $300 per year covers $5K, saving $5K, worth if one dispute in 16 years. For small business employment dispute unfair dismissal $20K compensation plus legal $10K, legal insurance $300 per year covers $10K, worth it. For average homeowner with no rental or business, may not be good idea as disputes rare, with $300 per year for 20 years $6K cost with no claim. So legal insurance good idea for landlords, small businesses, tradies and drivers for $200 to $400 per year covering $50K legal costs, as one dispute $5K to $20K pays for 12 to 50 years premium, but not essential for average homeowner with low dispute risk, though $300 per year cheap peace of mind.
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