How Does Motor Insurance Work in Malta?

The  motor insurance industry in Malta is growing rapidly as a result of the increase in the number of vehicles and the changing needs of consumers.  New regulations aimed at protecting the victims of traffic accidents have caused various changes in policy terms and conditions.

Due to this, understanding how motor insurance works can be confusing. Whether you’re a new driver or ready to renew your motor insurance policy, there are many aspects of motor insurance to consider.

To help you out, we’ll explain the different aspects of motor insurance, from buying a policy and filing a claim to policy renewal.

Contents

• Buying a motor policy
• Filing a claim what is the claim process
• Renewing your policy

Buying a Policy

The first thing you need to understand about motor insurance is how a policy works. To help you understand, we have included the different steps you should think about and consider before buying a policy, from start to finish.

1. Choose the Right Policy for You

There are three different types of motor insurance policies to choose from, these being third-party cover, third-party, fire and theft cover and comprehensive cover. Choosing the right policy for you is an essential first step in understanding how motor insurance works.

Different factors affect what motor insurance you need, from your age to your vehicle type to more complex issues.  If your car is fairly new, Comprehensive cover is the best option, if on the other hand it has a low value then third party cover might be sufficient.

2. Understand Different Policies and Quotes

Different motor insurance providers have different policies and premiums, so it’s important to do some in-depth research to discover what is right for you. For example, if you’re a young driver, you might want to see if there are insurance policies out there that cater specifically to your needs.  Motor insurance can be very expensive for first-time drivers, so seek out policies that are targeted for these drivers

Gasanmamo offers an affordable motor insurance policy for young drivers called Boosh. It is specifically designed for drivers between the ages of 18-24 and offers a range of additional benefits at an affordable premium.  Why not discuss it with a member of our team today?

3. Think About Policy Limits

Insurers provide an IPID (Insurance Product Information Document) that gives clear, concise information about the policy to help you better understand and compare insurance policies before purchasing. It outlines key features of the policy, including what is covered, what is not covered, any significant exclusions, how claims are handled.  Make sure you read this and understand what limits and excesses apply.  An excess is the first part of the amount you claim that you will be responsible for paying, and for many motor insurance providers, it is higher for young drivers or higher-value vehicles.

4. Speak to a Licensed Insurer

One of the best ways to understand how motor insurance works is through speaking directly to a licensed insurer. This way you can ask questions and gather all of the information you need about how a policy works before making an informed decision. Speak to one of our team today to find out more.

What is the Claim Process?

What is the procedure when making a motor insurance claim? Well, that looks a little different for everyone, but to help you understand more, it will look a bit like this:

1. Contact your insurance agent or representative

If you are involved in an accident, no matter what type, it’s important to contact your insurers immediately and put it on their radar. Take photographs of the collision and any damage that has occurred if it’s possible and get the details (names and phone numbers) of everyone involved. You will then be asked to fill in the claim form that will be provided to you by your insurance agent or representative. This can also be done online through the company’s website.  It’s also very important to provide them with any other information they may need, alongside your photographic evidence. 

2. Claim Any Benefits From Your Insurance

Depending on the kind of insurance policy you have, you may be entitled to some additional benefits when you make a claim. For example, some comprehensive covers may offer a free courtesy car or roadside assistance. This is also something to consider before choosing your motor insurance policy.

At Gasanmamo, we offer a range of different benefits with our motor insurance policy, including free protection for your no claims discounts and a discount when insuring multiple vehicles. Get a quote from us today.

3. Get Your Vehicle Fixed

Once you have sorted your motor insurance claim, it’s time to get your car fixed. If you have comprehensive cover, your insurer will arrange for it to be inspected and then, if you are covered authorise the payment of the repair costs to the repairer of your choice.  When your car is fixed the insurer will pay the repairer directly.    In some cases the insurer may offer you a cash payment and you can then settle the cost with the repairer yourself.

If you have a third-party cover or third-party, fire and theft, your policy will not cover any accidental damage to your vehicle, meaning you will be responsible for the costs unless you were not to blame for the accident. In that case, you can claim these costs from the insurer of the other driver.  Your insurer would normally assist you in this process but cannot make a claim on your behalf.

Renewing your policy

Motor insurance doesn’t last forever. In fact, it expires every year. So, to make sure you’re getting a good deal when it comes to renewal, there are a few things you should know about, which we have included down below.

1. When do I Need to Renew my Policy?

You will usually receive notice that your policy is ending around a month before it expires. This gives you the opportunity to review the terms of your existing policy and decide if it is still right for you. You might decide to go for comprehensive cover, or drop down to third-party, add or remove drivers, depending on your insurance needs.  If you have comprehensive or third-party fire and theft cover, make sure that you revise the insured value of your vehicle as this would have likely gone down due to depreciation,

If you’re happy with your current policy, you may not have to do anything else.

2. What is a No Claims Discount?

A no claims discount is usually offered by most insurance providers. This policy basically means that for each year you are ‘claims free’ on your insurance, you are entitled to a discount. However, the amount is something that will differ depending on your provider, which is why it is so important to do your research.

3. Will My Insurance Premium Increase After a Claim?

In some  instances, your insurance policy will increase after a claim, even if the accident wasn’t your fault. This is due to your provider needing to cover the costs of your repairs and may also consider the circumstances of the accident and whether you are at a higher risk of being involved in an accident in the future.  If you were not at fault in the accident and your insurer was able to reclaim the cost of your claim from the insurer of the responsible vehicle, then your claim will not affect the premium you will pay.

Understanding how motor insurance works isn’t easy. However, we hope we have managed to answer some questions for you and break it down in a way that is easy to understand. If you have any more questions on how motor insurance works, or you would like to make a claim, get in touch with one of our agents today. 

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.