07 Aug How Much Does ATE Insurance Cost?
If you’re currently looking into After The Event insurance, it’s logical to research the costs involved as a first step in the process. Of course, applying for this kind of cover will always be a worthwhile investment – considering that its purpose is to protect you from the legal expenses and fees that may result from fighting a court case, which can become substantial – but getting your finances in order and having a good idea of what your insurance will cost beforehand will save you from any surprises later down the line.
So, how much will you be expected to pay for After The Event Insurance? Read on to discover a little more about the costs involved and the various means by which you can pay.
- The Price
As with most other forms of insurance, the premiums depend on the specific facts surrounding your circumstances and the facts of the case. This means that you’ll need to discuss everything in detail with your insurance broker before being quoted an exact price. However, there are a number of different pricing models available that are likely to affect the amount you will pay in total.
- The Payment Process
When it comes to After The Event Insurance, there are a number of ways in which you are able to pay. Here’s a quick run down of each, and how they may or may not benefit your particular requirements:
- The Staged Premium
This is a payment schedule that involves the relevant costs rising as your case moves on. The final amount to pay depends on the stage at which the matter settles. Typically, you’ll need to pay around ten percent of the total cover you’re seeking for matters arising pre-issue, while post-issue you’d be expected to pay anywhere between twenty five and sixty percent with the length of the case taken into account.
- The Fixed Premium
This is an approach that many individuals find beneficial if it is assured that the case in question is certain to go to court and run for a reasonable amount of time. A fixed premium means that the amount charged will be the final amount paid, however long proceedings last. The risk with this pricing model is that if the case is settled just after proceedings are issued, it’s highly likely that you’ll have spent more on your cover than you would on the premium for a settlement.
- A Percentage of Damages
If you opt for this pricing model, you can also decide whether you’d like it to be arranged on a staged or fixed basis. Choosing the “percentage of damages” option is becoming ever more popular, as the exact costs required for your premium can be calculated according to the damages to be recovered.
- How Can I Ensure I’m Not Paying Too Much?
To take control of your premium, you can firstly choose which of the above pricing models suit your case and your situation the best. However, there are a few more approaches that will help you. It’s definitely worthwhile to apply for After The Event Insurance as soon as you are made aware that you may be involved in a court case, as applying late may mean that this cover is harder or more expensive to obtain, and that any costs that have already been accrued may not be recoverable. You can also choose when your premium is paid, as this will again offer you a few more opportunities to save money depending on your individual case.
- In Full, Up Front
If you arrange for this type of payment, you won’t run up against any extra charges afterwards – meaning that, usually, you could save a considerable amount of money. The only drawback is that you will not be able to recover this fee if you lose your case.
- Deposit Up Front, Full Payment Deferred
If you decide to use this method of payment, you can usually work out a no win, no fee deal whereby your deposit – paid at the start of proceedings – costs between ten and twenty percent of the full amount and is non-refundable, but the remainder will not be paid until the case is settled, and not at all if you lose.
- Full Premium Deferred
This is perhaps the riskiest option. A premium payment that is fully deferred until the end of a case offers little protection against any rising costs incurred as the proceedings continue.