Is ARAG Legal Insurance Worth It? A Detailed Look at the Pros and Cons

Legal issues can arise at any time, often when you least expect them. From traffic violations to disputes with landlords to family law matters, having access to professional legal advice can provide invaluable help navigating challenging situations But lawyers are expensive This is where legal insurance plans like those offered by ARAG can come in handy – for a relatively small monthly premium, you get access to legal advice and representation. But is ARAG’s legal insurance really worth it? In this comprehensive guide, we’ll take an in-depth look at what ARAG covers, examine the limitations of their plans, and ultimately help you decide if ARAG’s legal insurance makes sense for your situation.

What Does ARAG Legal Insurance Cover?

ARAG legal insurance plans cover a wide range of common legal matters, including:

• Consultation and advice from a lawyer via phone or in person
• Document review and preparation (wills, leases, contracts etc.)
• Representation for issues like traffic violations, property disputes with landlords, consumer matters and more
• Family law services including adoption, name change, prenuptial agreements and contested divorce (with limitations)
• IRS audit services
• Identity theft defense
• Access to online legal tools and resources

Most plans allow you to use any lawyer, with discounted rates if you use a lawyer within the ARAG network. Certain levels of coverage also extend benefits to your spouse and dependents.

Importantly, ARAG plans have no deductibles or copays and provide unlimited consultations. You can access benefits immediately after signing up, with no waiting periods.

What Legal Issues are Not Covered by ARAG Plans?

While ARAG plans cover a wide range of common legal needs, there are some notable exclusions:

• Pre-existing legal matters – Any case opened prior to starting coverage is excluded.

• Intentional acts – For example legal defense if you intentionally commit a crime.

• Business matters – Anything related to self-employment or business ownership.

• Patent/copyright cases – ARAG won’t cover disputes related to intellectual property.

• Class actions – You can’t participate in class action lawsuits under ARAG plans.

There are also limitations on the extent of representation provided for certain matters:

• Contested divorce – ARAG will appoint a lawyer and pay legal fees up to a set amount, such as 20 hours. Fees beyond that come out of your pocket.

• Bankruptcy – Advice and document preparation may be covered but actual bankruptcy filing and representation often excluded.

• Estate planning – Simple will preparation may be covered but more complex trust and estate matters are not.

Be sure to read the fine print to understand exactly what is and isn’t covered by a particular ARAG plan.

What Do ARAG Legal Insurance Plans Cost?

ARAG legal insurance plans range in price from $6 to $20 per month depending on the level of coverage.

The ARAG UltimateAdvisor plan, which is one of the most comprehensive options, runs about $16-20 per month. It provides a wide range of family, civil and consumer protection benefits with no copays or deductibles. Paralegal review of documents and letters/calls made on your behalf are included.

More basic plans like the ARAG LegalSelect plan start around $6-8 per month. They offer advice and lawyer referrals for a range of legal matters but have greater limitations on actual legal representation.

Spousal coverage generally adds another $5-8 per month, while dependent children can often be included at no additional cost.

Overall, ARAG plans are at the lower end of pricing compared to other legal insurance options. The trade-off is less robust coverage for certain legal matters.

Pros of ARAG Legal Insurance

There are several advantages that make ARAG legal insurance appealing for many people:

Access to legal advice – For a relatively small monthly fee, you can consult with a lawyer on any personal legal matter. Advice over the phone is unlimited. This can provide significant peace of mind.

Preventative legal services – ARAG makes it affordable to have lawyers review or prepare documents proactively, before disputes occur. For example, having a lawyer review a lease.

Discounted lawyer fees – Even for matters that exceed your coverage limits, ARAG plans provide reduced hourly rates with in-network lawyers.

Identity theft services – All ARAG plans include identity theft assistance such as placing fraud alerts and negotiating with creditors.

No copays or deductibles – Unlike health insurance, ARAG plans have no hidden costs or surprise bills.

Starts immediately – You get full access to benefits right away with no waiting periods.

Cancel anytime – ARAG legal plans are month-to-month and can be canceled anytime.

Cons of ARAG Legal Insurance

There are also some potential drawbacks to consider:

Limited family law coverage – Contested divorces often reach coverage limits very quickly. Expect significant out-of-pocket costs.

Business/employment not covered – ARAG plans exclude anything related to business ownership or employment disputes.

Pre-existing cases excluded – Only new legal matters that arise after coverage starts are eligible.

No class actions – You can’t join class action lawsuits under ARAG plans.

Mixed online reviews – While most customer reviews are positive, some cite claim denials or poor customer service interactions.

May duplicate existing benefits – Many homeowners/auto policies already include basic legal protections.

For maximum value, it’s important to understand ARAG’s limitations and weigh costs versus potential benefits for your unique situation.

Is ARAG’s Legal Insurance Worth It? Our Final Take

At the end of the day, whether ARAG’s legal insurance makes sense depends on your particular circumstances and needs.

If you currently run a business or anticipate issues like bankruptcy/criminal charges down the road, the protections are likely insufficient. In that case, self-insuring with an emergency legal fund may be preferable.

On the other hand, if you just want an affordable way to consult lawyers about common civil, family or consumer issues that come up, the legal advice access and discounted rates can be very valuable. ARAG makes this kind of preventative legal assistance budget-friendly.

For individuals who are risk-averse and get peace of mind having a lawyer on call, the relatively small monthly investment in ARAG’s legal insurance may be worthwhile. Just be sure to read the fine print and understand the coverage limitations.

Ultimately there is no “right” answer – it’s about weighing the costs versus potential benefits for your unique situation. Carefully consider whether ARAG’s legal insurance plans makes sense as part of your overall financial strategy.