Insuring a Car & Vehicle in Spain: Motor Insurance

All vehicles must have at least third party insurance. Proof of insurance must be carried at all times. There are penalties for drivers of vehicles without valid insurance.

Types of Insurance

Spanish insurance policies may differ to other countries standards, including EU countries. For example when a car is considered a write-off in Spain the insurance company will only refund a percentage of the value.

• It is obligatory for all cars to have - at least - third party, fire and theft insurance (part comprehensive). This is called: Seguro de terceros o de responsabilidad civil obligatoria
• Fully comprehensive "all risks" insurance (Seguro a todo riesgo) is available and often obligatory when leasing a car or buying on hire purchase
• Optional driver and passenger insurance (Seguro de ocupantes) provides compensation for loss of earnings and death. Special insurance may be required for exceptional contents and accessories

The Spanish insurance system operates on a no-claims bonus (bonification/sistema bonus-malus). In order to benefit evidence of no prior claims will need to be provided. It can significantly reduce the cost of insurance. A permium may be reduced by electing to pay an excess (franquicia).

Claiming after an accident

• To find out about what to do after a motor vehicle accident in Spain, see AngloINFO INFOrmation Page, Accidents in Spain

If an accident is caused by an uninsured vehicle, the damaged/injured party is entitled to compensation from the Insurance Compensation Pool (Consorcio de Compensación de Seguros).

If the car is registered in another country, a Green Card, certificado internacional de seguro de automovil must be displayed.

Insuring an EU Registered Car in Spain

If the car spends over six months of the year in an EU country other than Spain it is necessary to take out a European insurance policy with the home insurer. EU regulations mean that all vehicles must be insured in the country in which they are registered. Therefore if the car is (for example) UK-registered it cannot be insured with a Spanish company. The vehicle can, however, be insured with a British insurer in Spain, by using the Spanish branch of a UK insurance company.

As the law stands a foreign registered car can spend six months per calendar year on Spanish roads without any additional paperwork. It can remain in Spain indefinitely as long as it is garaged on private land (not left on the roadside) for six months per year. The vehicle will need to maintain a valid roadworthiness (MOT in the UK).

• See AngloINFO INFOrmation Page, ITV Vehicle Roadworthiness in Spain

To register a car in Spain it needs to be deregistered in the country of origin then re-registered with the authorities in Spain.

• For further information see AngloINFO INFOrmation Page, Registering a Foreign Car in Spain

Further Information

• Information on moving a car to Spain from EURES  
• Information from Spainlawyer.com
• The Council for compensation and insurance in Spain: Consorcio de Compensación de Seguros
• Information on driving in Europe from Europa
• AngloINFO INFOrmation page on the Green Card System
• AngloINFO INFOrmation page on Driving in Spain
• AngloINFO INFOrmation page on ITV Vehicle Roadworthiness in Spain