Car Insurance In Portugal [In-Depth 2022 English Guide]
If you have recently moved to Portugal and are considering getting car insurance, wait a minute. Before you take out a car insurance company, you need to know all the information you will need along the way. It is mandatory to find out everything before you take car insurance in Portugal so that you can have an idea about all the options available. This way, you will get the best financing options and insurance services for your car by protecting your vehicle in the long run. There can be different scenarios.
For example, if you are coming with your car to the country, you must have valid car insurance. When you legalize your vehicle, you can get temporary insurance from an insurance company authorized to proceed legally with its operations in Portugal. But once the temporary period is over, you will have to look for a permanent car insurance solution, and it should also be according to all your needs and requirements.
It is worth it to get car insurance because it will surely be a lot of fun when you explore a beautiful country like Portugal in your car. If you plan to get a rebate on your premiums, your driving history will play an essential role.
This article will discuss everything you need to know to get car insurance in Portugal and give you all the information about how the car insurance industry operates in the country. Stay with us and keep reading to find all the information you need about car insurance for ex-pats and foreign residents in Portugal.
How Important Is Car Insurance In Portugal?
If you are moving to Portugal or have already done it, you need to know that car insurance is mandatory in the country. All the vehicles on the public roads must have insurance, and only then will you be eligible to get the protection in case of an emergency. On the other hand, you will get limited liability coverage and insurance companies responsible for compensating for any physical injury you might get or automobile injury due to the accident if a third party is involved.
The maximum coverage you can get in case of a car accident due to a third party in Portugal from the car insurance company is €7.3 Million. However, it is essential to note that it will not cover the collateral damage at all, which is going to be caused due to the driver on their own and glass breakage.
To get car insurance in Portugal, you need to have a Green Card, which will be given to you by the insurance company. This is important for you to keep because it will be used as proof of insurance that will be very handy for you in case of an accident. You will be heavily fined if you do not carry it with you.
Choosing The Best Car Insurance Company In Portugal
A good thing about car insurance in Portugal is that it is highly customizable, and you can make it according to your needs and requirements. However, finding the right car insurance company is still overwhelming because so many are available. Keep in mind that if your vehicle is very old, it is not worth it to keep paying for its coverage. The insurance company will not cover any damages you have caused and will only provide you with the car’s residual value.
If you are lucky enough, you will find a car insurance company in Portugal that will take a deductible amount for any eventual claim. Mostly it is a fixed percentage of the total amount, and you have to pay this fixed amount to the insurer. However, there is no need to worry because you don’t have to pay deduction agreements.
The regulations will differ and depend upon the insurance company you choose and what kind of premium you have signed with them. You must convey everything clearly on day one to the insurance company to ensure you don’t have anything to worry about later on!
The Best Protection For Your Vehicle In Portugal
There is often a misconception regarding car insurance that the damages will only be paid for the damage caused to a third party and damage to your vehicle. This is false because other protections are available as car insurance for your vehicle. There are many scenarios in which your car can get damaged. For example, if you are driving on a bumpy road and your windscreen gets chipped.
In this case, you will have to pay for the glass replacement damage yourself if you do not have coverage for it. If you do not have any torrents, you will have to get involved in many legal matters to determine who is responsible and liable for covering all the damages. Legal production is available to protect your rights and support you in such an emergency. And all of this will be very difficult for you if you already do not have insurance coverage because the legal process will be in a language you don’t even know, Portuguese.
Additional coverage is required when getting car insurance because civil liability policies will not provide coverage for the medical treatment of the injured driver in case of a car accident on the road. That is why it is always a plus point to have additional coverage if you look forward to getting healthcare.
Documents Required To Get A Car Insurance In Portugal
You must have the following documents when you want car insurance in Portugal.
- Driving license
- Single vehicle document
- Passport
- Periodic inspection certified if your car is old
- Old insurance certificate
Types Of Car Insurance In Portugal
There are certain things you need to keep in your mind when you are trying to get car insurance in Portugal. Price and your budget is not the only important thing after all. It is pretty complicated to get car insurance in Portugal.
If you are Portuguese, it proves that it will be a little bit more complex for you if you are from another country trying to get car insurance. Multiple car insurance options are available for Portugal. Take a look at them below.
English-Speaking Car Insurance In Portugal
A must-know fact is that there are more than 70 offers from insurance companies available in Portugal. If you are from another country, there will always be a language barrier which will cause problems getting the best car insurance in the country. If you don’t know for days, the best thing for you is to get in touch with an English-speaking broker.
There are many English-speaking brokers in Lisbon, and they will help you get car insurance in Portugal. A broker is a reliable option for you because they are responsible for making comparisons of all the major insurance companies in the country and will find the best one for you, depending on your exact needs and requirements.
Getting in touch with an English-speaking broker is an advantage because you can ask them any question that you have in your mind regarding car insurance in Portugal, and you will not have any ambiguity in your mind.
Portuguese Car Insurance
If you already have a car with a European license plate, you can get Portuguese car insurance quickly. For that, you have to follow the simple steps in getting your contract modified by the car insurance company, and then you can get your hands on the Portuguese number plate for your vehicle.
All Risk Car Insurance Portugal
Another name for this type of insurance is personal damage insurance for your car. If you get this car insurance for your vehicle, then there are chances that you will be able to get comprehensive coverage for your car. This coverage is more than normal insurance. As it might sound like from the name of this insurance that it is all-risk insurance, it is not precisely that.
No car insurance available worldwide will provide you with 100% coverage; you need to keep that in mind. Portuguese insurance will cover most of the damages even if you are the one who is responsible for the damage to your vehicle out there on the road.
All Risk Automobile Insurance Coverage
The all-risk car insurance provides coverage in the following situations:
- Shock
- Collision
- Fire
- Flight
- Natural disaster
- Explosion
- Reversal
- Strikes
- Medical Assistance
- Travel Assistance
Process Of Insuring A Car Registered In Europe
This insurance will give you coverage for two months; after that, it will not be valid. It is a long process and will also cost you a lot of money. A better thing to do is purchase a new vehicle directly in Portugal once you have moved to the country.
It is possible to transfer your bonus to Portuguese insurance. It is important to note that not all companies will be interested in considering your background. You can still keep your car insurance from an agency in the country that currently provides services in Portugal.
Process Of Insuring A Vehicle Registered In Portugal
This process is much more symbolic than the previous one mentioned above. In this option, you get Third party Insurance and full coverage. It is possible to get a discount, but it is essential to remember that some insurance companies do not need a deductible in case of glass breakage of your car.
Note: Ensure that you take your time and make a comparison before they finally see. There are more than 70 companies available in Portugal right now which are providing car insurance depending on your needs and requirements.
How To Choose A Car Insurance Company In Portugal?
To calculate the price of car insurance you will get, you need to keep in mind the place where you live and the features of your vehicle. Stay up to date about what is going on in the market, and then you will be able to make the best decision by considering your needs and requirements to choose the best car insurance service in Portugal.
Consider the following factors before choosing a car insurance company in Portugal:
Conducting Research Properly
It is simple to research the car insurance companies available in Portugal using the internet. All you need to do is search on the internet, and then you can make different evaluations and simulations to choose the best option available in the market. Search about the features and characteristics of your vehicle and then get an idea about the value of your car and how much you will have to pay for car insurance when you are in Portugal.
They will also require your contact details, so you need to learn basic Portuguese. If you can’t speak the language, it can be a problem for you and create a language barrier. In that case, you can get the help of a local or hire an English-speaking broker to help you in this regard.
Keep Multiple Car Insurance Options In Mind
Mostly there is a misconception that car insurance will only be valuable if the car is less than a decade old. However, that is not true because getting car insurance for your vehicle depends upon your unique situation. The best thing for you to do is to get car insurance from the same company for all the cars in your family.
It will benefit you if you also get life insurance in Portugal because it can give you big discounts on the final amount you will have to pay to the insurance company. If you are looking forward to saving more money, you can always contact the insurance company and ask them if they can provide you with a further price reduction. This will only be possible when you are getting a combination of all the policies from the company.
Get in touch with an insurance professional to help you out, and they will be able to get you amazing discounts. However, it is essential to remember that it is not about getting a discount every time. Every insurance coverage has limits and restrictions; you need to keep that in mind. You never know what kind of situation can arise anytime. Unfortunately, if you ever have to face an accident regarding your vehicle, service could be more expensive than you thought it would be!
Top Car Insurance Company In Portugal
INVO Expat
INVO Expat is a well-known car insurance company in the country that provides a secure service according to the needs of its customers. We provide you with a customized experience at the best price possible. They have excellent customer support, and you can get in touch with them to get car insurance in Portugal right now.
INVO Expat Pricing and Plans
| Basic | Intermediary | Fully Comprehensive |
| 150/year | 200/year | 350/year |
| Civil Liability | Civil liability | Civil liability |
| Defence and appeals | Defence and appeals | Defence and appeals |
| 24/7 assistance: No | 24/7 assistance | 24/7 assistance |
| Windshield and glass repair: No | Windshield and glass repair | Windshield and glass repair |
| Theft: No | Theft | Theft |
| Fire: No | Fire | Fire |
| All accidents coverage: No | All accidents coverage: No | All accidents coverage |
Allianz Car Insurance
Allianz Car Insurance is the best car insurance company in Portugal. Currently, they also have a partnership with R2. 6 different options are available in this car insurance, and all of them provide different levels of protection to the driver.
The benefit of this car insurance is that it also provides comprehensive roadside assistance in case of an accident or if there is a fault in your vehicle. It also includes emergency repair services or if you need to transport your vehicle from one location to another in case of an emergency.
They also have a bonus policy that rewards a good driver with a yearly discount. It can also reach up to 50%, depending on your situation. Overall, there are many benefits that you can get after using this car insurance service in Portugal.
You can choose the insurance package depending upon your needs:
- Two liability options
- Four damage waiver options
- RC total loss coverage
Is It Possible To Drive A Car Without Insurance In Portugal?
If you drive a car in Portugal without car insurance, you face different consequences and risks. Getting third-party liability insurance in Portugal is compulsory if you want to take a vehicle out on the road. It is illegal in Portugal to drive a car without car insurance or if your car insurance is expired.
You will have to pay a heavy fine and get in trouble with the legal authorities in Portugal. The fine you have to pay for driving a car in Portugal without insurance is between 500 and 2500 euros. Another risk is that you might lose two points on your driving license because it is a severe offense in the country, and you can also get banned from driving for a while.
Getting car insurance as early as possible once you move to Portugal and start driving your vehicle is always better. There are many benefits of getting car insurance in Portugal, such as not being liable to pay any compensation if you are ever in a car accident. Everything will be covered by car insurance, and you will not be obliged to compensate if someone has been injured in the accident because of you.