Planning to get behind the wheel in Spain? Make sure you check out our complete guide to car insurance in Spain.

If you’re going to drive in Spain, it’s important to keep to the right side of the road and obey local laws. Car insurance is a legal requirement in Spain, so you don’t want to leave home without adequate cover.

To help you understand the Spanish car insurance market, this guide looks at key questions, including:

Overview of car insurance in Spain

You must insure all vehicles in Spain for at least third party liability. This includes cars, trucks, vans, motorcycles and scooters. But bicycles do not need insurance. Anyone caught driving without insurance by the Spanish police can be fined up to €3,000.

To get car insurance in Spain, you will need to register your car. You can drive foreign vehicles for a limited period (3-6 months) without Spanish registration, but you need to have at least third party insurance. All vehicles need insurance, even those that are parked or idle, although insurers usually only cover roadworthy vehicles.

As in many countries, insurance covers the vehicle, not the driver. You can add drivers to the policy, although those under the age of 25 or with a poor driving record may affect premiums. If sold, the policy can often be transferred to another car, although premiums may change.

Motor insurance is one of the largest insurance markets in Spain, accounting for  31.5% of non-life insurance  in 2017. The General Directorate of Insurance and Pension Funds   (  Direccion General de Seguros y Fondos de Pensiones – DGSFP  ) regulates insurance companies in Spain.

Motorcycle insurance

Anyone who rides a motorcycle, moped or scooter in Spain requires third party liability insurance as a minimum. You can also take out an extended policy that covers theft, roadside assistance and more, depending on the classification of your car. To purchase insurance cover, you need a driving license valid in Spain. Motorcycle insurance providers in Spain include Linea Directa.

Can you use car insurance in another country in Spain?

If you move to Spain from another  EU country  , you can continue to use your existing insurance policy. However, you will need to check with your insurer to see if you have international cover.

Non-EU citizens can use the insurance in their country for a limited period (3-6 months), but if you are moving to Spain from a non-EU country, you will need to register your car and buy car insurance in Spain after the end of this period.

Types of car insurance in Spain

There are three main types of car insurance in Spain:

Liability to third parties (  responsabilidad civil obligatoria or seguro obligatorio)

This usually covers all damages and costs incurred by third parties, including car damage, personal injury and legal costs. However, a standard policy will not cover any of your out-of-pocket costs.

You can customize third party insurance to include additional services such as roadside assistance, so be aware of coverage and exclusions when purchasing this type of insurance. It’s a worthwhile option if you have an older or less expensive car, or if you don’t drive often.

Fire and theft by third parties (  responsabilidad civil obligatoria, incendio y robo)

This covers standard third party claims and also covers a certain amount of damage to your own vehicle. This usually includes damage from fire, storm, natural disasters and accidents, as well as theft and vandalism.

Like standard third party liability policies, you can customize this insurance to suit your requirements.

Comprehensive (  todo riesgo)

This type of insurance covers all costs incurred by you and third parties, even if the accident is your fault. However, be aware that companies usually won’t pay if you break the law (such as drunk driving).

Comprehensive insurance is appropriate if you have an expensive car that will cost a lot to repair, if you drive every day or if driving involves special risks. However, don’t forget that your premiums will increase as the risks increase.

Car insurance costs

Car insurance in Spain averaged just over  €350 per year  in 2016, slightly above the EU average. Premiums have fallen from an average of over  €450 in 2005  . Third party coverage can cost as little as €150, but is usually €250-300. Fully comprehensive policies are likely to be €400 a year or more.

As in most countries, Spanish premiums are determined by factors such as the value and age of the car, the profile and age of the driver, and any additional risks associated with the policy. In Spain, where you live also matters a lot, as higher premiums are associated with busy cities like Madrid and Barcelona.

You can reduce your annual premiums by voluntarily increasing your excess or deductible, which is the amount you have to pay for each claim. Most policies provide for a mandatory additional amount, although comprehensive packages can usually be taken without an excess. They will be more expensive than standard comprehensive policies. Some insurers also offer temporary (3-6 month) policies at a higher monthly rate.

Additional forms of car insurance in Spain

In addition to standard third party and comprehensive policies, most companies also offer additional coverage. Here are some of the more common types:

  • Breakdown Assistance  – covers towing and repair costs, as well as replacement transport costs;
  • Claim Protection  – allows you to protect your no-claims bonus if you make a claim;
  • Legal costs insurance  – covers legal costs in the event of a legal case due to an accident;
  • Personal accident insurance  – covers medical expenses and can provide compensation in the event of death or disability.

Bonuses and penalties for car insurance in Spain

Spain has a no-claims bonus system where drivers can reduce their premiums year on year if they don’t make any claims. Each company will have its own no-claims schedule. You usually get a 5% discount for each year you have no claims. The maximum discount is about 65%.

You can carry over claim-free periods from other insurers when switching providers if you can provide evidence of a claim-free history. Spanish insurers usually recognize no-loss periods obtained in other EU countries. They may also recognize a good driving record in some non-EU countries, but this depends on the insurance company.

While no-claims periods earn discounts, premiums are likely to increase if you have an accident history. Expect to pay through the nose if you:

  • were involved in any incidents that occurred through your fault;
  • have any points on your license for things like speeding or drink driving;
  • is a young or inexperienced driver. Drivers under the age of 25 in Spain usually have to pay higher premiums.

Auto insurance companies in Spain

If you are having a hard time choosing between insurance companies,  Acierto.com  will help you compare their services. 

How to choose Spanish car insurance

When looking for car insurance in Spain, it’s a good idea to consider a number of factors rather than automatically choosing the cheapest policy. Other factors you may want to consider include:

  • Bonus without claims  – what discounts does the company offer and is it possible to transfer the periods without claims from abroad?;
  • Policy coverage  – third party and full coverage may vary from company to company. What’s included and how much does it cost to add what you might need?;
  • Excess/deductible  – is there a mandatory excess and what are the options for its voluntary increase?;
  • Company reputation  – what do customers and reviewers say about this company and its practices?;
  • Claims process  – how easy is it and how quickly will you get a refund after making a claim?;
  • Roadside assistance  – what level of cover does the company offer and will it cost extra?

Obtaining car insurance in Spain

Each car insurance company will have its own application process. To simplify the process, most companies now allow customers to apply online. A few smaller companies may ask you to apply by phone or email.

Most insurers ask for the following as a minimum requirement:

  • Spanish driving license or license that can be used in Spain
  • NIE number
  • Spanish address of the insured
  • Spanish bank account details

Once the insurance company has processed your application, you should receive your insurance certificate, an EU accident claim form and a green card to use if you use Spanish car insurance abroad. It is no longer a legal requirement to carry your car insurance documents, although it is a good idea to carry a copy in case you need to provide proof of insurance at any time.

Filing a claim to a Spanish auto insurer

Companies will have their own claims procedure which they should clearly explain to you when you take out your policy. In general, when making any claim, you are expected to:

  • complete the EU road accident report form (  declaration de siniestro de automóvil),  which must be signed by both parties;
  • obtain a copy of the police report form if you are involved in an incident where the police are called;
  • get the contact details of the other party along with any witnesses to the accident;
  • if possible, take pictures of the damage.

If you have comprehensive insurance and make a claim for damage to your own car, your insurance company will usually assess the damage before paying for the repairs. Spanish companies usually only pay a percentage of the value of the car if it is written off.

You usually have a set period of time within which you must file a claim. This usually happens within 2-5 days after the accident. Thefts should be reported to the police and the insurance company immediately. Insurance companies will wait 30 days before paying out if the car is stolen.

Termination of the contract or change of supplier

Auto insurance policies in Spain are automatically renewed after the contract expires. You will therefore need to notify your provider if you wish to cancel or switch to another company.

All companies have their own cancellation policies, terms and conditions. You can usually cancel the contract midway with two months’ notice, but you probably won’t get a refund of any amounts paid up front. As insurance premiums in Spain are usually paid in six-monthly or annual sums, be careful not to lose out.

You can usually cancel without penalty for the following reasons:

  • your insurer increases your premiums or changes the terms of your contract;
  • the insured car is written off or stolen

Your insurance company has the legal right to refuse to renew the contract if it gives you 15 days notice of its expiry.

Generally, you will need to write a letter or email to your insurance company informing them of your intention to cancel, along with the reasons for doing so. Some companies now allow customers to cancel online.

Filing a complaint against a Spanish car insurance company

If you want to complain about a Spanish car insurance company, follow these steps:

  • The first step  is to make a written complaint to the ombudsman or the customer service department of your insurance company. Your insurer must provide you with information about its ombudsman. If not, you can find them on  the DGSFP website  .
  • Step two  . If you are not satisfied with the response or do not receive a response within two months, you can file a complaint with the DGSFP. They will assess the complaint after contacting the insurer and issue a report stating whether they believe the company has complied with the law;
  • Step Three  – If you’re still not satisfied, you can go to court. You also have the right to go to court before filing a complaint with the DGSFP. However, keep in mind that you are responsible for legal costs.

Roadside assistance in Spain

Many insurance companies in Spain offer breakdown assistance as an additional service. Some comprehensive policies include this as standard.

You can also join a membership club such as  the Royal Spanish Automobile Club  (RACE). Overseas organizations such as the RAC also provide breakdown cover in Spain.

If you break down on Spanish roads, you should try to move your car to the nearest safe place (such as a roadside stop) and contact your coverage provider. If you don’t have coverage, RACE can help you, but you’ll have to pay for the service.

Breakdown assistance usually covers the cost of towing, alternative transport for the car driver and passengers, and the cost of emergency repairs. RACE membership costs approximately €16.50 per month, including roadside assistance in other countries.

Useful resources

Car insurance in Spain