insurance misconceptions

The world of insurance is very much still a wonder to many who might be hesitant of the terms and conditions attached to any policy. Truth is, there never existed a better method of protecting oneself and the assets important to a person.

We’ve already covered some of the most common myths that surround insurance policies, but there’s still so much ground to cover. Put your mind at rest with these statements that are about to bust rumours that make the rounds amidst conversations.

MYTH #1: TRAVEL INSURANCE IS TOO EXPENSIVE AFTER COVID

It is no mystery how the covid pandemic has shifted people’s views on travel and the destinations they intend on heading too. After two years, this virus has become common knowledge and many are still daydreaming about their well-deserved vacations.

Travel insurance policies have been offering a certain amount of coverage against the threat of covid in line with vacations. Whether it is getting a positive covid test and being unable to travel to getting covid when you are abroad, a travel policy will have your back to keep your mind at rest. Truth is, our travel insurance policies now include an automatic cover against covid; so, you don’t have to add an extension to your policy. Full travel coverage may start from as little as €40 to European destinations, which is a very small expense in line with the considerable amount of coverage it offers.

MYTH #2: HAVING MULTIPLE INSURANCE POLICIES WITH SEVERAL AGENCIES WILL GET ME THE BEST PRICE

Although many insurance companies offer similar coverage in their policies, it doesn’t mean that picking one at random or based on the cheapest price possible will tick all the boxes you require. Whilst the fee is a big factor which might sway you to one company or the other, make sure you understand the extent to which the policy will cover you or your assets.

Furthermore, at Thomas Smith Insurance Agency Ltd., you’ll be granted a well-deserved customised price if you have multiple policies – not just on specific aspect such as insuring multiple cars, but you’ll also be eligible if you get a home insurance, business cover or even a boat insurance policy. Speak to our representatives to learn how you may benefit from this arrangement.

MYTH #3: I DON’T NEED A HOME POLICY AS I’M STILL RENOVATING MY PROPERTY

Whilst your home might still need a couple or more finishing touches, the property itself is still insurable. In fact, many entities – such as the bank if you require a loan on the property –  will require a home insurance policy to finish off the proceedings.

The reason why this is done is because the building itself is a considerable asset and should any accidental damages occur, your buildings home insurance will cover it.

If your home is undergoing renovations or extensions, you may still issue a home insurance policy. However, it is important to note that the home insurance policy would not cover any loss or damage to the actual home as a result of the renovation or extension works. To be covered against this, one would need a Contractors All Risks insurance policy in place. Best to speak to your insurer for adequate guidance during such a process.

Once your property is finished, you may then talk to your insurer to add coverage for home contents.

MYTH #4: THE CAR COLOUR RELATES TO A DIFFERENCE IN MOTOR INSURANCE

Whether your car’s colour is as black as night, white as cotton or a fancy colour you personally chose, its hue will not have any effect whatsoever in the policy you are offered.

When issuing a car coverage policy, your insurer will take into consideration factors such as the engine size, the year of manufacture, costs that might be incurred to repair it should an accident occur, the driving record of the driver, and many more.

MYTH #5: IF ANOTHER INDIVIDUAL DRIVES MY CAR, THEY WILL BE COVERED THROUGH THEIR INSURANCE POLICY.

In Malta, a motor insurance policy is issued on the vehicle, not on the driver. Whether it’s the primary driver or any other person making use of the vehicle, should an accident occur, it is the car’s own policy that comes into play.

That is why during the drafting of a motor insurance policy, the insurer will ask you if you wish to add additional drivers to be covered under the policy. In such a case, make sure to mention any other individual that might make use of your car or potentially getting covered for any person over the age of 25. In the case of an accident, if the current driver at the time is not covered by the vehicle’s insurance, you might get into unnecessary trouble.

MYTH #6: I SHOULD BOOK TRAVEL INSURANCE EVERY TIME I BOOK A HOLIDAY.

If you’re a seasoned traveller and can’t keep your feet on the same ground for too long, the Annual Travel Insurance might be just what you have been hoping for.

There is no need to take out a travel policy before every trip or even inform your insurer about it. Just speak to our representatives about the details of annual travel policy; where you may travel an unlimited number of times during a 12-month period using the same policy. It saves you time and effort!

MYTH #7: MY EMPLOYER PAYS FOR MY HEALTH INSURANCE SO I’M FULLY COVERED

Certain companies offer their employees a health insurance in addition to their salaries as a fringe benefit. Whilst this is much appreciated, it is best to check with the respective insurance provider or even with your employer what is covered by that policy and speak to your insurer to see whether you can upgrade the cover and/or even include cover for your family members.