That time of the year again!

Insurance Policies

We all know the feeling, dragging to the insurers office every year to pay our car license and insurance, or even more frequently if you have more than one car or a fleet of classic cars.

It’s a dragging feeling yet a good one, when you know that if you have the right protection, it might be worthwhile in the future.

Below you will find out about each type of insurance which you motor enthusiasts can benefit from on the island and the details of how insurance works.

Today there are different types of insurance.

The most common, which you all have been offered are these

Third party only

This is the cheapest and the most basic cover one can obtain as required by law. Through this policy you will be covered only for the damage you cause to other people. Damage can be caused to anything while using your car– other cars, property, life etc. In addition, it also covers any passengers in your car and pillion-riders on a motorcycle.

Although there is a limit on the amount of liability covered by such policy, it run into millions, hence its cover is still adequate

Third party fire and theft

This is like the first cover but with an extension to include any theft or fire caused to your car. So if you are driving and your car catches fire accidentally you will be covered, subject to each insurer’s policy terms.

Fully comprehensive

This is the most expensive cover out of all three, however in contrast to the other two policies, this also includes cover for your car.

So, if one simply damages his car by accident, for instance colliding into a wall on a public road, if it is worth the money one can claim the damage made and he will be refunded for the repairs he makes on his car. 

What you need to know about

No Claims Discount (NCD)

One must not forget that a discount is provided by the insurer when you don’t register any claims throughout the year. Therefore the less you claim, the cheaper your insurance fee goes, up to a certain limit. Insurers offer a claim bonus which is ranked by percentages, if in 1 year you don’t have any claims you will continue increasing the discount percentage, until you reach the maximum discount percentage provided by your insurer.

This varies between 65% to 70%, depending on the insurance provider, such discount would be on the insurance fee only. The license fee is not within the control of the insurer, as this is charged by a government authority. Therefore no discount can be given on that by the insurer.

No claims discount is not affected if:

Accident is not your fault, hence the insurer will recover any expenses which it pays on your behalf

If roadside assistance is called

You can also pay an extra fee to ‘protect’ your no claims discount on certain policies, in the event of a claim. With some insurers, NCD becomes automatically protected after a number of years at no extra fee. 

Yanika Caruana

Accountant, Classic car enthusiast/owner. She loves roaming around and doing DIY projects.


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