Car Insurance In Spain [In-Depth 2022 English Guide]

If you prefer to drive and have decided to buy a car in Spain, you should make sure you are complying with all the necessary rules and regulations. One of these is to get car insurance since you cannot drive your car unless you have it. To help you navigate the process, this article will explain the steps in detail as well as give you information on costs and other important aspects of insurance you will need to take into account.

Is Car Insurance Required In Spain?

Car insurance in Spain is a legal requirement and you may be fined up to 3000 euros if you are found to be driving without it. Your vehicle, be it a car, truck, motorbike or scooter, is required to have at least third-party liability. Bicycles are exempted from insurance. Since it is a legal requirement, car insurance is among the largest insurance markets in Spain, and constitutes 31% of all non-life insurance.

You will need to register your car before getting insurance. While you can drive a car without registration for 3 to 6 months, you will need to have the minimum level of insurance. Insurance is applied to the vehicle in Spain unlike many other countries, and not the person. You have the option to add multiple drivers to the policy depending on how many will use the car. But even this is not necessary: anyone can drive the car as long as they have your permission and a valid driving license.

You can also continue using the car insurance you had in another EU country. But you will need to confirm if your provider will give you international coverage. If you were previously living in a non-EU country, however, you will be able to use your previous insurance only for 3 to 6 months. Once this period has lapsed, you will need to register your car as well as take out new insurance on it in Spain.

3 Car Insurance Types In Spain

Responsabilidad Civil Obligatoria Or Seguro Obligatorio – Third Party Liability

This is the minimum level of coverage required by law. It covers damages and costs incurred by third parties in an accident, including damage to the vehicle, personal injuries and any legal costs like processing of fines. This will not cover damages to you or your own vehicle. If you wish, you can even include add-ons like roadside assistance. Make sure you look at the extent of coverage and all the exclusions before finalizing your plan.

Responsabilidad Civil Obligatoria, Incendio Y Robo – Third Party Fire And Theft

This level will cover the standard third party damages as well as provide a certain level of cover for your vehicle. This includes damage from natural disasters, fire, storm and accidents as well as theft and vandalism. Some companies let you pick the extra coverage and might offer replacement vehicles and even cover serious mechanical breakdowns of your car.

Todo Riesgo – Comprehensive

A comprehensive policy will cover the costs of all damages incurred by you or the third party, even if the accident was your fault! However, you must remember that your insurance company will not provide cover if you were violating the law at the time of the accident (e.g. drinking and driving).

It is an all-risk option and usually covers mechanical problems and other issues that could have resulted from the incident. There is a certain peace of mind that comes with this insurance, even if it comes at an increased price. Almost anything that can happen to your vehicle will likely be covered under this policy.

You can either get this kind of policy with or without a deductible. The higher the value of the deductible you choose, the greater the discount you can get on the insurance price.

How To Decide What Types Of Car Insurance To Get?

Firstly, you should consider the age of your car. If you have an old car that has a low market value, a third party liability cover would be sufficient. It covers the legal requirement, does not cost much and yet will cover most of your insurance needs. However, suppose you are a car enthusiast and own a particularly expensive car. In that case, you should get a comprehensive plan which will help you cover for any damages that occur to your vehicle during an accident.

You should also consider how often you drive the car. For someone who is a frequent traveler and uses their car daily, the probability of damage is a lot different than for someone who will only be using their car occasionally. You should see if taking out a more expensive plan makes sense, or you can get away with the bare minimum too. Similarly, people who drive often or have risks associated with their driving should consider getting a comprehensive cover.

The third party extended coverage can be useful if you are worried about specific aspects and want them insured. For instance, if you do not have a garage with your living space and have to park out on the street overnight, your car has a higher risk of being in situations like theft and fire. Your insurance plan should reflect these risks.

How Much Does Car Insurance Cost In Spain?

The average premiums are close to 350 euros a year, which is slightly above the average of the EU. If you want only the basic level i.e. third-party coverage, you can get it as cheap as 150 euros. Although, at most places it will cost you somewhere between 250 and 300 euros. Fully comprehensive policies are more expensive, at 400 euros or more per year.

How To Pay Less For Car Insurance In Spain?

Increase Your Deductible

You can reduce your premium if you voluntarily increase the amount you will pay as excess or deductible. Deductible is the sum that you have to share and pay towards each claim. While most policies have a compulsory deductible, you might be able to take out some comprehensive packages without any deductible at all. These will automatically be more expensive than the standard comprehensive policies. The amount of deductible can range anywhere from 90 to 6000 euros, although the most common amount chosen is 300 euros.

If you get temporary policies (3 to 6 months), those will also tend to be more expensive.

Find Out Ways To Bring Down Your Premium

Premiums will increase depending on your driving record too. If you or someone on the insurance policy for your car has a poor driving record or is under 25, you will likely have to pay a higher premium. Similarly, if your license has points for drinking and driving or speeding, the premium will increase.

Try To Stay Out Of Accidents

Spain has a no-claims bonus system. This means that you can reduce your premium on a yearly basis if you do not file any claims. Each company will offer its own rates, but the most common is a 5% discount for each year that you do not file claims. The maximum discount you can go up to is 65%.

You even have the option to carry over your no-claims time period to a new provider if you shift between companies. Most companies will allow this, and some will even carry over this period if you were previously living in another EU country.

Which Is The Best Car Insurance In Spain?

There are a number of factors that play into your choice for an insurance provider. You might not just want to go for the cheapest option since it might exclude some things you need. Instead, take a look at the following aspects:

Policy coverage: both third party and comprehensive plans can vary in their specifics from company to company. So you should look into the details of the plan you are opting for to see what is included or not
Deductible options: as mentioned above, some policies have a compulsory deductible. You should also check if there is an option to increase it voluntarily
No-claims bonus: you should confirm what discounts the company offers for a no-claims period, and if it will accept a transfer of such time periods from abroad
Reputation: the company’s reputation, and the years it has been in service also matter
Roadside assistance: a lot of companies will provide roadside assistance at an extra cost too
Claims process: you should check how easy the process is and how quickly you can get reimbursed after making a claim
Value of the car: some companies will take the value of the car as new for total loss, fire or theft if this happens within the first two years

There are numerous options for getting car insurance in Spain. The three overall types of plans are broadly the same. But the specifics might differ a little for each. Here are the top providers:

Caser Insurance

Caser Insurance was founded in 1942 and has been operating in the Spanish market for almost 70 years. It is one of the largest companies in the country. The Swiss insurance group Helvetia currently has a majority stake in the company.

Caser offers to design products specifically tailored to the client’s needs and also regularly invests in new technology to ensure the efficient administration of its insurance as well as retirement products. Here are a few features of its car insurance:

A new feature called Caser Autohelp is included in all coverage types. If your car gets into an accident, Caser Autohelp is automatically informed and will call emergency services. This is even in the case that you are unable to ask for help yourself
Up to 60% discounts for no-claims period
For the first two years the vehicle value is taken at full. From the third year this goes up to 120%
Carry out assessment within 24 hours and they will repair your car at the location of the incident
English customer support available all day
They will send the car to a garage of your choice, cover travel expenses and send you a car to take you to a hotel after an accident

Liberty Seguros

Liberty Seguros is a part of the Liberty Mutual Group. It was founded in 1912 and is one of the largest insurance groups in the world, presently operating in five continents. The company has been active in the Spanish market since 2001 and has a ‘branchless’ model that deals with customers through its Service Centers. It has around 100,000 international clients in Spain. Its strength lies in the household and motor insurance areas. Their car insurance offers the following benefits:

Complete coverage for both the driver and passengers, as well as roadside assistance and assistance with managing your fines
No-claims discounts going up to 65%
Personal accident cover for the driver of the car, including compensation and monthly income
Extended cover for travel and roadside assistance round the clock. As a customer, you will get telephone numbers provided to you for use in Spain and abroad
The ‘named driver’ category which offers price reduction to customers who fall under this category

Reale Seguros Expatriats

Reale Seguros is a prominent name in the market, and has been operating in Spain since 1988. It is part of the Italian Reale Mutual Group founded back in 1828. Their innovative techniques have helped them survive nearly two centuries in the business. The group offers a wide variety of products for individuals as well as small industries. Their car insurance in particular offers the following:

Carry forward the no-claims bonus from your country
Replacement of vehicle in case of accident, breakdown or theft
Cover up to 12,000 euros in factory accessories of your car even if you don’t declare them
For the first three years the car is valued at 100% and after the fourth this is increased to 130%
Their travel assistance covers the vehicle as well as driver, passengers and even your luggage! The services include alternative means to travel in case your car breaks down, medical and health assistance, expenses due to early return and search and delivery of lost luggage along with compensation for delays

Mapfre Insurance

Mapfre is a multinational insurance company based out of Madrid, Spain. It is the leading insurance company in Spain and also has a huge market presence in Latin America. Overall, they operate through 5,800 offices in 5 continents and offer products for individuals, professionals as well as businesses. As an expat in Spain, you can also benefit from their newly launched English customer service if you ever run into problems. They offer the following packages in car insurance:

Third party Insurance – this includes both the basic and extended versions and covers fire, theft and more
All Risk Insurance – this is their comprehensive plan which you can get with or without a deductible
Car Insurance for Young People – this package is specifically for drivers under 30 and those who have recently started driving. Their prices are in accordance with the driving habits of this cohort
Ecological Car Insurance – this plan is specifically for electric, hybrid and ecological cars which emit less than 120 grams of CO2 per km and rewards good drivers.

AXA Insurance

AXA Spain is one of the leaders in the Spanish insurance market, particularly the non-life segment. They currently serve around 3 million corporate and individual customers through various companies. Their large presence in all provinces along with the 7000 information and sales points make them one of the most efficient providers. They offer the following in car insurance:

Their Eco Kit covers your electric or plug-in hybrid against theft of the charging cable or station and they also assist you in case of a lack of battery
If you are a frequent traveler to the mountains or areas close to hunting grounds, you can get protection against any unforeseen accidents with hunting animals
With their online consultation tool, you can check if you will be provided cover in specific circumstances that you might be concerned about
They have a wide network of workshops across the country
If you cannot move your car, they will pick up your car and after repair drop it off at a spot of your choosing all for free

3 Other Important Factors Regarding Car Insurance And Driving In Spain

What Do I Need To Consider Before Switching Providers?

Contracts are signed for a year, and usually you will not be able to pay monthly (however, you might be able to negotiate quarterly installments with some companies). This means that once you have opted for a provider, you cannot change them halfway during the year. You will have to wait for the contract period to end before changing providers for whatever reason. And if you do plan on switching, you should give a notice of at least a month or two according to Spanish law, or it will be automatically renewed. If you still choose not to pay, you might be held liable in court.

Moreover, if you sell your car you will need to continue paying the premium for that year! But the good thing is, as long as you have official documentation which says that your car has been re-registered, you can get this amount adjusted by your insurance provider in a new policy. Keep these in mind whenever you take out insurance on your car!

Is My Car Insured Even Outside The Country?

Your insurance provider will provide coverage for your car for up to 90 days outside of Spain. For the most part, you will have the same level of coverage as within the country, but it is a good idea to check your policy or contact the company to get to know the exact details. You should carry your Green Card with you at all times whenever you are travelling outside the country where the vehicle was registered and subsequently insured.

What Do I Do If I Am In An Accident?

If you have an accident, you will need to fill out the blue accident form. This is available in multiple languages including Spanish and English so feel free to use the one you are most comfortable with since they are all the same. Moreover, if the accident happened with someone who has their vehicle insured from another country, make sure you have a copy of their Green Card (take a picture of it on your phone maybe?).

Conclusion

Spanish law requires third party liability coverage at the least on all vehicles. But even within this category, you are bound to find a variety from various providers. Now that you know the ins and outs of the entire process, you should be able to find yourself a suitable provider who will offer the most affordable packages with the best cover.