In Malta, many people see insurance as something to buy once and forget about, assuming it will take care of everything. However, there are common misconceptions that could leave you and your family exposed during life’s most unexpected moments. Whether it’s protecting your home, health, or financial future, understanding your insurance coverage is key to safeguarding your well-being.

Let’s clear up 5 common insurance myths that might leave you and your loved ones vulnerable when it matters most.

Myth #1: "I’ve Got Insurance, So I’m Fully Covered."

Many Maltese homeowners and renters assume that once they have an insurance policy in place, they’re fully protected. However, one of the most common and dangerous mistakes is undervaluing your home or possessions, which can lead to underinsurance. This is where the average clause becomes a significant concern, potentially reducing your payout during a claim.

The Reality: If your property or contents are insured for less than their actual value, the average clause can kick in. This clause reduces your payout proportionally, based on the level of underinsurance. For example, if your home should be insured for €200,000 but you’ve only insured it for €100,000, any claim you make will be reduced by half. This means that in the event of a claim for €40,000, you’d only receive €20,000, leaving you to cover the rest out of pocket.

To avoid this, it’s essential to accurately assess the value of your home and belongings, ensuring they are fully covered and reviewing your policy regularly.

Myth #2: "Third-Party Car Insurance Is All I Need."

While third-party car insurance is the legal minimum required by Maltese law, it only covers damage or injury to others. Many drivers think this is enough, but if you're in an accident, third-party coverage won’t cover the repair costs for your own car.

The Reality: With Malta's narrow, winding roads and often congested traffic, accidents are more common than you'd think. Comprehensive car insurance will cover not just the damage to others but also your vehicle in case of an accident, theft, or vandalism. It's a small price to pay for peace of mind on Maltese roads.

Myth #3: "I Don’t Need Life Insurance—The Government Will Take Care of My Family."

It’s easy to assume that Malta’s social safety net and the state pension will take care of everything if something happens to you. However, government benefits may not be enough to cover your family’s long-term financial needs.

The Reality: Life insurance is a crucial part of ensuring your loved ones are looked after, especially if you have a mortgage or children in private schools. In Malta’s current economic climate, a tailored life insurance policy can provide your family with financial security when they need it most.

Myth #4: "Private Health Insurance Isn’t Necessary—I Have Free Healthcare."

While Malta boasts an excellent public healthcare system, many people are opting for private health insurance for quicker access to specialists, private hospitals, and better elective surgery options. Assuming the public system is enough could mean long waiting times when you need treatment the most.

The Reality: Health insurance in Malta isn’t just for expats or the wealthy—it’s an increasingly popular choice for locals who want quicker, more comprehensive care. With private healthcare, you can avoid long waiting lists and choose your preferred doctor or specialist.

Myth #5: "I Don’t Need an Insurance Review—My Policy is Fine as It Is."

Many Maltese residents believe that once they’ve purchased insurance, they’re set for life. However, life changes—whether it’s buying a new home, getting married, or starting a business—can affect your insurance needs.

The Reality: It’s essential to review your insurance annually to make sure your coverage still meets your needs. As your circumstances change, your insurance should change too.

Why It’s Important to Get Local Advice

Maltese residents face unique challenges when it comes to insurance, from navigating busy roads to understanding what’s covered in home policies. That’s why it’s essential to get advice from someone who understands the local market and can tailor a policy to fit your specific needs.

As your local Tied Insurance Intermediary for MAPFRE Middlesea pl.c. through Laferla Insurance Agency Ltd. and MAPFRE MSV Life p.l.c., I can help you review your current policies, identify gaps, and ensure you’re covered for Malta’s most common risks—from car accidents to home security. With over 25 years of experience serving the Maltese community, we know how to help you get the right coverage without overpaying.

Ready for a free insurance review? Contact us today to ensure you’re fully covered—Malta’s unpredictable weather and traffic won’t catch you off guard!