The Different Classes Of Motor Insurance
If you’re driving your vehicle on public roads, then there’s a legal requirement to have motor insurance in place. This is necessary to protect you and your vehicle, alongside keeping others on roads and highways safe.
As motor insurance is essential for vehicles in use, it’s no surprise that the European motor insurance market is in steady growth. Statistics show that the motor vehicle insurance market market is projected to reach a market size of $197.4bn in 2024.
Recent research also predicts that the market is likely to increase by a further 3% each year through to the end of 2026. This could reflect an elevated demand with more cars on the road, and an expansion in younger drivers requiring motor insurance, particularly after the pandemic.
As there are more drivers than ever, it’s a good time to take a look at the different classes of motor insurance so you can select the right one for you and your vehicle.
Contents
What are the different classes of motor insurance?
What is third-party only motor insurance?
A guide to third-party, fire and theft motor insurance.
Comprehensive motor insurance explained.
Be protected with motor insurance from GasanMamo.
What are the different classes of motor insurance?
In general, motorists will find three different classes of motor insurance on the market. When considering which one to go for, it makes sense to think about you, your driving needs and the type of vehicle you have.
What is motor insurance? Ultimately, it’s the cover you buy to protect yourself from financial liability if your car has an accident or is damaged, plus this can also cover the costs associated with the theft of your vehicle.
You might need to name more than one driver on your insurance if someone else, such as a family member, is going to drive your car or other vehicle. This may influence the type of insurance you get and can also affect the overall price, particularly if a named driver has just started driving.
Typically, drivers will find the different classes of motor insurance are:
Third-party only
Third-party, fire and theft
Comprehensive
Let’s explore each one to see which one is best for you and your vehicle.
What is third-party only motor insurance?
Third-party only motor insurance is essentially the minimum motor insurance cover you require to drive and operate your vehicle on public roads. Put simply, this insurance type covers you if you injure someone (a third-party) or damage their vehicle whilst driving.
However, it’s notable that third-party only motor insurance doesn’t cover you if your car is stolen or damaged. For many drivers, this is a more reasonably priced option, but does carry a certain risk in case your own vehicle sustains damage.
A guide to third-party, fire and theft motor insurance
Some may see this policy as mid-level coverage. This is because you have the same third-party coverage as third-party only, but also gain coverage to your own vehicle if it is damaged by fire, theft or attempted theft.
Here is what you can typically expect:
Third-party
If someone else is injured or their car is damaged and it is your fault as a result of your driving, they are covered under your policy to have their vehicle repaired. Medical compensation may also be included if they are hurt.
Fire
You can have the cost of repairing your car covered if it has been damaged by either accidental or deliberate fire.
Theft
You can get coverage for the cost of replacing your car if it has been stolen and the cost of repairs if your car has been damaged during an attempted theft.
Comprehensive motor insurance explained
As the name suggests, comprehensive motor insurance offers more extensive policy coverage than the two other motor insurance classes. How does motor insurance work if it is comprehensive?
Basically, comprehensive motor insurance covers personal damage to yourself, your vehicle and compensation for a third-party if they are involved in an accident which is your fault.
This means that if you have an accident, you can get any damage to your vehicle repaired, and also your insurance will cover the costs of damage to a third-party for personal injury or vehicle damage. Fire and theft damage is generally also covered in this type of policy.
As with all motor insurance policies, every insurance provider will offer their own specific types of coverage. It’s important to choose the right policy that suits you, your type of vehicle and your individual needs.
Be protected with motor insurance from GasanMamo
Gasanmamo provides you with years of experience in our specialist motor insurance team. Our friendly group of experts are always happy to help and talk you through the different classes of motor insurance policies.
You might also want to know about the additional benefits you can secure, ranging from discounts for multiple vehicles to free roadside assistance, making us Malta’s most popular motor insurance provider.
Get a quote today, or contact our team for a chat.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
