Insurance In Spain
Discover which forms of insurance are required in Spain and what additional coverage you require to safeguard your lifestyle and family while living in Spain.
Knowing which insurance is required in Spain and completing the paperwork to obtain Spanish insurance might take a lot of work for individuals migrating to Spain.
This page provides an overview of insurance in Spain for expatriates, including information on what the law requires and what you may require in addition to the mandatory Spanish insurance.
Overview Of Spanish Insurance
The Spanish insurance market is one of the top fifteen in the world. In 2018, the value of premiums taken out in Spain was €64.4 million, a 1.5% increase over the previous year.
Car insurance, health insurance, and life insurance are the most popular types of insurance in Spain. Multi-risk home insurance that covers the structure, contents, and liability is also popular.
The Directorate-General for Insurance and Pension Funds (also known as Direccion General de Seguros y Fondos de Pensiones – DGSFP) of the Ministry of Economy and Business regulates insurance companies in Spain. The Spanish Association of Insurers represents approximately 98% of Spanish insurance companies in Spain (Asociacion Empresarial del Seguro – UNESPA).
Which Insurance In Spain Is Legally Required?
Car Insurance
In Spain, local law requires a minimum level of car insurance, known as seguro a terceros. This covers third-party damage, fire, and theft. If you want comprehensive insurance, choose seguro a todo riesgo, which will cover damage to your car, the other car, and any other issues that may arise.
Lower monthly payments may be available if you can demonstrate that you last filed a claim several years ago and are willing to pay a higher excess (franquicia). In certain cases, you can present your previous country of residence’s accident or insurance history. In Spain, car insurance companies include:
Once you are a resident of Spain, you may need to obtain a Spanish driver’s license. You will also need to learn the road rules for driving in Spain.
Most vehicles, including trucks, RVs, motorcycles, scooters, boats, and planes, require insurance to operate legally. Bicycles, on the other hand, do not require insurance.
Health Insurance
Spain has a government-run healthcare system that provides free healthcare to all Spanish citizens. If you qualify for the state system as a resident, your mandatory social security contributions in Spain will cover it.
Many expats choose to budget for optional private health insurance. The advantages include more options and shorter wait times.
Furthermore, private insurance may provide you with greater access to English-speaking medical professionals. Expats frequently use the following international health insurance companies:
Social Insurance
Spain, like many other European countries, has a social security system in which all employees and self-employed workers earning at least the minimum wage must contribute monthly to social security. Social security in Spain includes, in addition to healthcare:
- work-related sickness or injury
- family and child benefits, including parental allowance
- invalidity benefit
- old-age pension
- unemployment benefits
Optional Forms Of Insurance In Spain
Dental Insurance
Dental work is not typically covered by health insurance policies in Spain. You can, however, add it as a supplement or purchase a separate dental policy. Before purchasing a dental insurance policy, carefully consider the costs and benefits, as some provide a discount on services.
Although a 50% discount may appear appealing, consider how frequently you will use the policy and whether it is more expensive than your annual check-ups and cleaning.
In addition, you may be locked into a single network of providers; if this is the case, you should check to see if your nearest English-speaking dentist in Spain is on the list before signing.
Dental insurance can be purchased for as little as €10-€20 per month. Packages that include more specialized treatment, such as implants, will be more expensive.
Home Insurance
Building insurance is not required by law, but it is frequently recommended when purchasing a home in Spain. Your Spanish mortgage provider may insist on building insurance and will frequently offer you an in-house deal. You are not required to take this, and you are free to look for more competitive options. In Spain, home insurance providers include:
Look for insurance that covers natural disasters, fire, flood, and other types of damage. Furthermore, new construction should already have coverage against defective workmanship.
Insurance is frequently included in apartment building service fees. This insurance is not a replacement for building insurance, so only make assumptions about the coverage once you have thoroughly read the policy details.
Contents Insurance
In Spain, you are not legally required to have contents insurance. As a result, approximately eight million Spanish homes lack contents insurance. Furthermore, many more people are uninsured.
However, if you intend to rent out your property or frequently leave it empty – for example, if you travel – you may feel more secure with insurance. For an additional fee, many insurers cover portable goods (such as cell phones, laptop computers, and bicycles) outside the home.
Unemployment And Injury Insurance
In Spain, government-run programs help the unemployed and the poor, but foreigners should check to see if Spain’s social safety nets are available to them.
It would help if you looked into how much you might receive under Spain’s unemployment system versus the costs of unemployment and injury insurance. This coverage is available through your health insurance provider, pension fund, or separately.
Life Insurance
A common type of insurance among Spanish residents is life insurance. It is not required, but it provides for your dependent family members (such as your spouse and children) in the event of your death, either as a lump sum or as regular payments.
Mortgage payments and one-time costs, such as funeral expenses, can be covered by life insurance. It is ideal for shopping around for the best deal based on what your policy should cover.
Pet Insurance
If you have a pet in Spain, domestic animal insurance usually covers medical expenses. In addition, it may cover burial or cremation costs, travel, and theft. Some services may also include assistance in locating misplaced pets.
Travel Insurance
Private health insurance may cover a basic level of travel insurance (Seguros de viaje): check the level of coverage offered. If you frequently travel abroad, participate in extreme sports (such as skiing or cycling), or visit for extended periods of time, you should consider purchasing specialized travel insurance.
There are single-trip, multi-trip, and annual options available, with the ability to cover long trips of up to 120 days. In addition, insurance may cover problems that arise during your trip, such as canceled flights.
Commercial Insurance In Spain
If you own a business in Spain, you must ensure that you have adequate business insurance. In Spain, insurance for businesses and freelancers includes:
- Business Liability Insurance – All businesses require public liability insurance to protect themselves. This covers you for third-party accidents, injuries, and damage that occur on your premises or as a result of your business activities. You can also choose to extend coverage against financial or reputational harm caused by your business actions or decisions.
- Premises Insurance – This safeguards your commercial property against damage caused by fire, floods, natural disasters, or vandalism. It is not required for all businesses, but many landlords insist on it for their tenants.
- Contents Insurance – This protects all movable equipment from theft and damage. It will not, however, cover vehicles, which require a separate vehicle insurance policy.
- Business Interruption Insurance – If your company suffers a financial loss as a result of an unexpected closure, this can cover operational costs such as employee salaries.
Conclusion
You now know what insurance covers what and which one may be required for your time in Spain. You must consider whether you can cover the potential damage or cost out of your own pocket. There is no need for insurance if you can. Consider getting insurance if the amount needs to be clarified because it can rise unexpectedly and jeopardize your financial stability.