Why You Need Legal Insurance

Lift the Financial Burden of Dealing with Legal Issues

  • 2 Minute Read
  • Shares

At one time or another you may face a situation that can lead to legal headaches. It could be a dispute with a home contractor over subpar remodeling work or fighting a traffic violation you felt was unfair. Legal issues like these add a lot of stress to already busy lives, not to mention the financial burden of paying the costly attorney fees it often takes to resolve them.

Three out of four Americans experience at least one legal event every year.1 But 76% of consumers have no plan for how to pay for lawyer fees when legal issues arise.2 That can lead to a lot of financial stress.

How much does a lawyer cost?

One of the first worries many people have when they encounter a legal situation is the cost of an attorney. Not surprisingly, the rates can vary a lot depending on where you live, what kind of legal expertise you need and the complexity of the issue.

Overall, resolving a legal issue can make costs add up, especially when you consider things like taking time off work to attend legal proceedings or paying attorney fees, which currently average $368 an hour.3  And when the average number of attorney hours for a matter like buying or selling a house is six hours,4 those fees add up fast. Plus, the mental toll it takes is substantial as well, as people struggling financially are three times as stressed as those who aren’t.5

Because the cost can vary, it’s important to ask any attorneys you’re considering specific questions about their fees. Find out what they charge per hour, as well as what kinds of things they charge for — such as phone calls, emails, etc.

What are the common legal issues people deal with?

Wherever you are in life, whether it’s landing that first new job, starting a family, moving into a new home or nearing retirement, there could be legal fees you run into — and matters coming up you didn’t plan for, including:   

Creating a will.

Divorce.

Dealing with debt collectors.

Property line and other neighbor disputes.

Bankruptcy.

Buying or selling a home.

Issues with bad contractor work or incomplete auto repairs.

Traffic tickets or moving violations that could lead to license suspension.

A legal plan can offer an affordable option.

A legal insurance plan from ARAG® offers an affordable, trusted way to address legal problems and issues. First, with a nationwide network of more than 14,000 attorneys, you won’t waste time trying to find an attorney on your own. You can go online, use the ARAG Legal app or call ARAG Customer Care to find local network attorneys.

Second, the plan can help you avoid the financial strain of paying costly attorney fees, as network attorney fees are 100 percent paid-in-full for many covered legal matters. The plan provides you a place to turn and an attorney to talk to when you want to address a legal issue, need legal representation or just have a question about the legal implications of an issue.

When you need to take action for legal matters in life, start by calling one of our ARAG customer care specialists at 800-247-4184, Monday through Friday,
7 a.m. to 7 p.m. Central time. They’re here to help you identify your needs, figure out next steps and help you connect with local network attorneys.

1 How Legal and Financial Issues Impact Employee Wellness. Russell ResearchSM for ARAG. December 2016.

2 2016 ARAG Consumer Panel Survey.

3 Average hourly attorney rate for attorneys with 11 to 15 years’ experience according to The Survey of Law Firm Economics: 2018 Edition, The National Law Journal and ALM Legal Intelligence, October 2018.

4 Calculated by multiplying average hours from 2017 ARAG claims data by the average hourly attorney rate of $343 for attorneys with 11 to 15 years’ experience according to The Survey of Law Firm Economics: 2017 Edition, The National Law Journal and ALM Legal Intelligence, October 2017