Car Insurance in Malta
Third party vs comprehensive — costs, coverage, and what affects your premium
Is Car Insurance Mandatory in Malta?
Yes. Under Maltese law (Motor Vehicles Insurance (Third Party Risks) Ordinance, Cap. 104), all motor vehicles on public roads must have at minimum Third Party Liability insurance. Driving without it is a criminal offence and can result in heavy fines, licence suspension, and vehicle impoundment.
Car insurance in Malta is regulated by the Malta Financial Services Authority (MFSA). All insurers operating here must be licensed by the MFSA.
Types of Cover
Third Party Only (TPO)
The legal minimum. Covers injury and property damage caused to other people — it does not cover your own car.
- Covers: bodily injury to third parties, damage to third-party vehicles and property
- Does not cover: damage to your own car, theft, fire, or weather damage
- Best for: older, lower-value cars where repair cost exceeds insurance benefit
Typical cost: €280 – €600 / year
Third Party, Fire & Theft (TPFT)
Extends TPO to include your own car if it is stolen or damaged by fire.
- Covers: all TPO benefits + theft, fire damage to your vehicle
- Does not cover: accidental damage to your own car (e.g. collision, scrapes)
- Best for: mid-value cars where theft risk is a concern but full repair cover is not needed
Typical cost: €350 – €750 / year
Comprehensive
Full coverage including your own vehicle for accidental damage, regardless of fault.
- Covers: all TPFT benefits + accidental damage to your own car, windscreen, weather events
- Usually includes: courtesy car, 24/7 breakdown assistance (varies by policy)
- Best for: newer, higher-value cars, finance/lease vehicles, or drivers who want peace of mind
Typical cost: €600 – €1,800 / year
Typical Insurance Costs in Malta
The table below shows indicative annual premiums for a standard driver aged 30–45 with a clean licence and several years no-claims bonus. Younger drivers or those with claims history will pay substantially more.
| Car example | Third Party | Comprehensive |
|---|---|---|
| Small hatchback (2010–2016, ~€5k value) | €280–€380 | €500–€800 |
| Family hatchback (2016–2020, ~€12k value) | €320–€480 | €700–€1,100 |
| Compact SUV (2018–2022, ~€20k value) | €380–€560 | €900–€1,500 |
| Large SUV / premium (€30k+ value) | €450–€700 | €1,200–€2,200+ |
These are indicative ranges only. Always get quotes from multiple insurers for your specific vehicle and driver profile.
What Affects Your Premium
Increases your premium
- • Driver under 25 (significant surcharge)
- • Driving licence less than 3 years old
- • Previous claims or convictions
- • High-performance or modified car
- • High engine CC or CO₂
- • Higher car value
Reduces your premium
- • No-claims bonus (up to ~60% discount)
- • Named driver policies
- • Older driver (35–60 typically cheapest)
- • Lower engine size / electric vehicle
- • Agreed value vs market value
- • Higher voluntary excess
No-Claims Bonus
Malta insurers recognise no-claims bonus (NCB), also called no-claims discount (NCD). This is typically built up year by year:
- 1 year claim-free: ~10–15% discount
- 2 years: ~20–25%
- 3 years: ~30–35%
- 5 years: ~45–55%
- 6+ years: up to ~60%
Some insurers offer NCB protection as an add-on — this preserves your discount after one claim per year, for a small additional premium.
NCB earned abroad (e.g. UK, EU) is generally accepted by Maltese insurers, though you'll need a letter from your previous insurer confirming the claims-free years.
Main Car Insurers in Malta
The following insurers actively write motor insurance in Malta. It is always worth getting quotes from several before committing.
- Mapfre Middlesea — one of the largest insurers on the island, strong local presence
- GlobalCapital Insurance — Maltese insurer, competitive for standard cars
- Laferla Insurance — well-known local broker with access to multiple underwriters
- APS Bank Insurance — often competitive for straightforward profiles
- HSBC Life Assurance (Malta) — motor products alongside life/home cover
Several UK insurers also write Maltese policies, particularly for expatriates. Check whether your UK insurer can cover a Maltese-registered vehicle.
Insuring an Imported Car
UK and Japan imports are common in Malta and most insurers will cover them without issue once the car is registered with Transport Malta. However:
- Make sure the car is fully registered (VRT paid, plates issued) before insuring — some policies require Maltese plates to be in force.
- For modified or significantly upgraded imports, declare all modifications at quote stage to avoid voided claims.
- Japan imports with non-standard specifications may be valued differently — agreed value policies can protect against undervaluation.
Getting the Best Deal
- Always compare quotes from at least 3 insurers.
- Pay annually rather than monthly — monthly premiums typically cost 10–15% more overall.
- Consider a higher voluntary excess to reduce your annual premium, especially on older cars.
- If adding a young driver to a policy, consider a named-driver arrangement to keep costs manageable.
- Review your cover each year — loyalty does not always pay, and switching can save significantly.