Top 7 myths about insurance in Moldova: Truth vs. Perception

Insurance services are often surrounded by misunderstandings and preconceived notions. Why do these myths arise? Most often, they stem from a lack of financial literacy, anecdotal personal experiences, or confusion between different types of insurance. Misconceptions can heavily influence people’s decisions – for instance, the low rate of home insurance (only 2–3% of homes in Moldova are insured (stiri.md) suggests that many homeowners avoid getting insured, possibly due to the belief that “nothing bad ever happens” or that it’s a waste of money. Such beliefs can leave individuals and businesses vulnerable to financial disasters. It is essential to distinguish between perception and reality when it comes to insurance, in order to make informed and rational decisions.

Let’s debunk seven common myths about insurance in the Republic of Moldova, revealing the truth behind each one and providing concrete examples from the local market.

Perception: Some people believe that paying an insurance premium is a pointless expense, especially if nothing happens. Therefore, they prefer to save money by avoiding policies.

Truth: Insurance turns a potential financial disaster into a manageable cost. A car accident or a fire can cost tens or hundreds of thousands of lei, while the insurance premium represents only a fraction of those amounts. In 2023, insurers in Moldova paid over 1.007 billion lei in claims (bnm.md), and in 2024 that figure increased by about 28%, with the highest payouts being for motor and property policies (bnm.md). These figures clearly show the efficiency of the protection mechanism offered by insurance.

A concrete example: A Moldovan insurer paid 1.6 million lei for an accident covered under the Green Card insurance policy. That’s an amount unaffordable for the average person, but fully covered through insurance. When an incident occurs, a policy provides real protection, and if nothing happens, the premium brings peace of mind. Insurance is a risk management tool essential in an unpredictable economy.

Perception: Many drivers confuse Compulsory Motor Third-Party Liability Insurance (MTPL) with comprehensive coverage, mistakenly believing that if they have an MTPL policy, any damage to their own vehicle will also be covered. In other words, they assume MTPL compensates both third parties and their own car in the event of an accident.

Truth: MTPL does not cover damage to your own vehicle. By law, MTPL policies only cover liability to third parties – meaning material damage or bodily injury you cause to other drivers, passengers, or property in an accident that is your fault. For example, if you cause an accident, your MTPL will pay for the other driver’s car repairs and possible medical expenses for victims, but not for your own vehicle. “The MTPL policy does not cover damage to the policyholder’s own vehicle or personal injuries if they are at fault.” To protect your own car, you need a separate voluntary policy – Comprehensive Car Insurance (see Myth 3).

The law sets clear limits: up to €100,000 for property damage and up to €500,000 for bodily injury (total, per accident). In 2024, approximately 631 million lei were paid as MTPL compensation to third parties – about 27% more than in 2023, when payouts totaled 497 million lei (bnm.md).

To protect your own vehicle, Comprehensive Car Insurance insurance is needed (optional). If you are at fault or if no responsible party is identified, without Comprehensive Car Insurance you will have to cover the repair costs yourself. Therefore, don’t rely on MTPL for your own damages – its purpose is different. In conclusion, the myth that “MTPL covers everything” is false and potentially dangerous; drivers must understand MTPL’s limitations and buy Comprehensive Car Insurance policies if they want full auto risk coverage.

Perception: This idea comes from the fact that owners of new cars (especially those bought via leasing or loans) are usually required or encouraged to get Comprehensive Car Insurance, while owners of older vehicles typically don’t insure them. As a result, many assume that Comprehensive Car Insurance is useful or available only for brand-new or very recent cars, and that if your vehicle is a few years old, “it’s not worth it” or “no one will insure you.”

Truth: Comprehensive Car Insurance is not reserved for new vehicles only. Many insurers in Moldova offer Comprehensive Car Insurance policies for used cars, depending on their condition, value, and year of manufacture. Age limits set by insurers (usually up to 10–12 years) cover a large portion of active vehicles. The premium may be higher for older vehicles, but the protection remains valid. Comprehensive Car Insurance covers damage from collisions, theft, vandalism, or natural events.

In 2024, Moldovans purchased Comprehensive Car Insurance policies totaling 627.3 million lei in gross written premiums (bnm.md) – a significant amount that shows thousands of drivers (including those with used cars) are insuring their vehicles. A practical example: if your car is hit by severe hail, MTPL won’t help (there’s no liable third party), but Comprehensive Car Insurance will – as long as it’s included in your policy. Therefore, this myth is false: any vehicle owner who relies on their car and wants to protect it financially should consider Comprehensive Car Insurance.

Perception: This myth has two sides. On one hand, some people believe that health insurance (whether state-mandated or private) is ineffective, because “you still end up paying out of pocket” or insurers always find a way to deny reimbursements. On the other hand, healthy young people often ignore medical insurance altogether, thinking they’ll never need it. At its core, this myth suggests that health insurance is useless because either you won’t get sick or insurers won’t help when you do.

Truth: Both public and private health insurance policies work and pay according to contractual terms, and the data proves this. First, it’s important to distinguish between Moldova’s mandatory state medical insurance (managed by CNAM) and voluntary private insurance (typically offered by commercial insurers, such as medical subscriptions, travel coverage, or supplemental health plans). The state policy covers a basic package of services, but it has its limits; a private health policy helps cover additional costs that the state doesn’t reimburse. The public insurance doesn’t cover everything, and a private policy can give access to broader services without financial stress.

In 2024, insurers paid out 84.7 million lei in health-related claims (bnm.md), up from 71 million lei in 2023 (bnm.md). These funds covered treatments, surgeries, medical services, and compensation for thousands of insured individuals – clear proof that policies pay out when a covered risk occurs.

In conclusion, the myth that “health insurance doesn’t pay” is unfounded. Health insurance is a key element of personal security: nobody wants to need it, but when a costly medical issue arises, it can make the difference between getting timely treatment or delaying it due to lack of funds. The key is choosing a policy that fits your needs and understanding what it covers – so you don’t end up with unrealistic expectations. Insurers honor their obligations.

Perception: This belief is especially common among young adults, who often think that insurance – whether for life, health, or even property – is something you only need later in life. “Nothing will happen to me, I’m young and healthy” is a common mindset, with the assumption that serious risks (illness, death, accidents) are far off. As a result, many young people either skip voluntary insurance altogether or postpone it, thinking any money spent now would be wasted.

Truth: Being young and healthy doesn’t mean you’re immune to risk. Accidents, illness, and other emergencies can happen at any age. The advantage of being young is that insurance is more affordable (premiums are lower for younger people), and the chance of being accepted without exclusions is higher. For example, traffic statistics show that novice drivers cause a significant share of accidents: drivers with less than three years of experience were responsible for over 13% of all traffic incidents in one year, leading to dozens of deaths and hundreds of injuries. So even at 18–20 years old, a serious accident is not unlikely – and without insurance (MTPL, Comprehensive Car Insurance, or personal accident), the financial and medical consequences can be severe.

Another practical reason: buying insurance at a young age often means a lower lifetime cost than if you start later. For instance, a policy taken at 25 will typically cost much less for the same coverage than one bought at 45. Moreover, some policies are long-term or even lifelong – once signed while you're healthy, they stay in effect, and you keep the benefits regardless of health issues that might arise later (the insurer can’t exclude you or raise prices due to conditions that develop after the contract starts).

In short, youth is not a magic shield against misfortune. Being young and capable is the best time to get insured – not a reason to avoid it. You benefit from low costs, access to good policies, and build a smart habit of integrating insurance into your financial planning. The myth that “it’s not worth it when you’re young” ignores life’s unpredictability: anything can happen, and insurance is the smart way to be prepared.

Perception: This is perhaps the most widespread concern — the belief that insurance companies will do anything to avoid compensating clients: they hide behind fine print, delay claim processing, or deny requests on bureaucratic grounds. The image is of companies that are happy to collect premiums but “bury their heads in the sand” when it comes time to help the customer. This myth has formed from unfortunate individual experiences and a historical distrust of financial institutions.

Truth: Licensed insurance companies are legally required to pay justified claims and are regulated by the National Bank of Moldova (BNM). In 2024, total payouts reached 1.28 billion lei (bnm.md), 28% more than the previous year – clear evidence that the system works. Abusive claim denials are penalized and often resolved.

In conclusion, insurance companies that operate legally cannot afford to “avoid” paying out claims: their reputation, legal obligations, and regulatory oversight ensure that most claims are paid as stipulated in the contract. The numbers speak for themselves, and the myth that “no one will compensate you” is largely fueled by fear, not fact. Of course, as in any field, it’s best to work with trusted insurers (all UNAM member companies meet this standard) and licensed brokers who clearly explain your rights and obligations. That way, you’ll know that your policy will fulfill its purpose when needed.

Perception: Some small businesses or even managers of large companies may see insurance as a retail product (meant for individuals: car, home, or health insurance), and assume that companies can handle risks in other ways (like self-insurance or prevention measures). The impression is that only individuals “need” insurance, whereas businesses either have nothing important to insure or can absorb losses on their own.

Truth: Nothing could be further from the truth – insurance is just as vital for businesses as it is for individuals, if not more. Every company, from a small Limited Liability Company to a large corporation, faces risks that could threaten operations: fire, theft, work accidents, liability toward clients or third parties, natural disasters, business interruptions, financial risks, and more. Without proper coverage, a single unforeseen event could cause massive losses or even bankruptcy. Many insurance products are designed specifically for business needs: commercial property insurance, general liability coverage (for third-party damages caused by the company), malpractice insurance (for medical, legal, and other sectors), trade credit insurance, agricultural insurance (for crops or livestock), performance bonds, employer liability, group health or life policies as employee benefits — and the list goes on.

In 2024, insurers paid out 171 million lei in claims to legal entities – over 2.5 times more than in the previous year. Comprehensive Car Insurance and MTPL policies cover company vehicle fleets, while property, liability, agricultural, and guarantee insurance are essential for stability.

Moldovan businesses – large and small – use insurance as a tool to protect investments, partnerships, and staff. From shops to construction or logistics companies, insurance solutions can be tailored to each industry. The corporate segment is a major part of UNAM members’ portfolios. So, the idea that only individuals need insurance is false – for businesses, a policy can mean the difference between survival and collapse. Smart companies don’t view insurance as a pointless cost, but as a strategic risk management tool.

Myths about insurance spread easily, but can only be overcome with accurate information and fact-based reasoning. As consumers of insurance services – whether individuals or entrepreneurs – it’s essential to educate ourselves on the role and benefits of these financial tools. Insurance is not a hidden tax or empty promise – it is a solid contractual commitment, governed and guaranteed by a well-established institutional framework (BNM, CNPF, special legislation, and in some cases, compensation funds). A clear understanding of insurance helps us integrate it wisely into both personal life and business strategy: from protecting your family and home, to ensuring business continuity and employee security.

In personal life, insurance offers peace of mind – knowing you have a financial Plan B if things take an unexpected turn. In business, insurance ensures continuity and protects investments – so you can move forward with confidence that one unexpected incident won’t undo years of work. Therefore, both individuals and companies should treat insurance as a trusted partner, not a waste of money.