The Hidden Costs and Risks of Relying on ARAG, Hyatt Legal, or CLC
Every so often, someone calls our office or asks during a case evaluation:
“Do you take ARAG, Hyatt Legal, CLC, or other prepaid legal plans?”
It comes up often enough that it’s worth addressing clearly. The short answer? No, we don’t accept legal insurance or prepaid legal plans. Here’s why—and what you need to understand before enrolling in one.
What Are Prepaid Legal Plans or Legal Insurance?
Prepaid legal plans—sometimes called “legal insurance”—are marketed as a way to make legal assistance more affordable. They’re typically offered in two ways:
- As an optional add-on sold directly to consumers
- Bundled into employee open enrollment benefit packages at work
Popular providers include ARAG, Hyatt Legal, and CLC. You (or your employer) pay a monthly premium—usually around $20—to the provider. In exchange, you receive limited coverage like:
- A “free” initial consultation or case review
- Percentage discounts on attorney fees
- Fixed-rate pricing for some services (e.g., ARAG might offer $300 flat for a DUI case)
On the surface, this may sound like a good deal. But here’s why we decline participation—and what you should consider before you enroll.
1. You’re Paying for Legal Help We Already Provide Free
Most criminal defense attorneys, including us, already offer a free case evaluation. If the plan’s biggest perk is an evaluation you could get elsewhere without paying, then you're spending $20/month on a covered matter that’s already available—at no cost.
2. The “Discount” on Attorney Fees Is Often Meaningless
Legal fees for complex personal legal matters such as DUIs, domestic violence, or felony charges aren’t flat or standardized. They depend on:
- Your criminal history
- The court handling the case
- The number and seriousness of charges
- Case complexity
Without a public rate baseline, any “25% discount” can be misleading. A network attorney might inflate fees, then apply a discount—bringing it back to what they would’ve charged anyway. These aren’t real savings. They're default values dressed up as deals.
3. Who Legal Plans Actually Pay: The Biggest Problem
Providers like ARAG or Hyatt Legal typically reimburse attorneys only a few hundred dollars for legal services that demand months of effort.
No seasoned criminal defense attorney can dedicate adequate time and legal advice at those rates. These plans tend to attract:
- New grads seeking experience
- Attorneys juggling cases out of coffee shops or their cars, with no staff or investigators
- Lawyers who pressure clients into fast plea deals to avoid trial
These network attorneys are often overloaded, underpaid, and too stretched to give your case the legal help it deserves.
Real Client Experiences With Prepaid Legal Plans
We frequently help clients who started with legal insurance—and regretted it. Here are common patterns we’ve seen:
The “Delay Until You Break” Lawyer
One client spent nearly a year with a network attorney who kept rescheduling hearings, did no investigation, and never filed a single motion. The tactic? Delay until the client gave up. Under stress, they nearly pled guilty just to be done. We took over, filed the overdue motions, and aggressively pushed back.
The “Who Are You Again?” Lawyer
Another client’s attorney from a prepaid plan didn’t know their name, only referring to them in court as “my client.” That lack of preparation hurt their standing with the judge. We stepped in and rebuilt the case from the ground up.
The “Vanishing Act” Lawyer
One person’s prepaid plan attorney stopped responding altogether—no calls returned, no updates, and no action. Hearings were continued without explanation. When we reviewed the case, no discovery had even been requested. We had to reconstruct the entire defense.
The reality? Switching attorneys mid-case often means higher costs, more delays, and cleaning up avoidable damage.
4. Serious Legal Matters Often Aren’t Even Covered
Most legal insurance excludes the very types of legal matters that carry real stakes:
- Domestic violence charges (e.g., harassment or violating protection orders)
- DUI/DWI charges
- Felony-level assaults
- Serious misdemeanors involving jail time
You might get an evaluation—but we already offer that. And realistically, are you going to file claims forms with HR for criminal charges?
These plans weren’t designed to help you defend your freedom or reputation. They exist to help with low-stakes items, not high-consequence litigation.
Why Legal Insurance Rarely Adds Value
Some people believe these plans might help with things like estate planning, aging parents, debt collection defense, or traffic tickets. But even there, risks persist:
- Family Law: Custody rights, child support, and divorce are high-stakes. You don’t want cut-rate representation.
- Estate Planning: Mistakes in living wills or trusts are often discovered too late—after you’ve passed.
- Traffic Violations: Minor cases might qualify, but even then, you may still face waiting periods or poor service.
At best, legal insurance may help with minor issues—like identity theft, basic forms, or selling property. But for anything serious, you need skilled, experienced legal assistance, not a modal dialog of disclaimers and limited access.
The Bottom Line
If you’re facing a DUI, domestic violence charge, or other serious personal legal matter, a $20/month plan won’t deliver what you need.
You want a dedicated legal team that can advise, investigate, and defend—without compromise.
We provide free case evaluations for criminal cases in Kirkland, Bellevue, Redmond, and the Greater Seattle area.
Schedule Your Free Case Evaluation with Knauss Law
Talk to an experienced defense attorney who knows how to fight—and win.
425-300-5566