7 myths about car insurance in Spain for expats

You have just moved to Spain and need to insure your car. You look for information and everything is chaos: contradictory answers, forums that don’t clarify anything and advice that is rather confusing. Is your licence valid or not, can you be insured as a foreigner, are you going to be charged more?

At The Insurance Centre we hear these questions every day. That’s why we’ve debunked the 7 most common myths about car insurance for expats. Number 7 could save you hundreds of euros a year.

Myth 1: “I can’t drive in Spain with my foreign licence”

It depends on where your licence is from, but in most cases, yes—you can legally drive in Spain with a foreign licence for a limited time.

• If you’re from the EU or EEA: your licence is fully valid in Spain.
  
• If you’re from outside the EU: you can drive for up to 6 months. After that, you may need to exchange your licence (if your country has an agreement with Spain).
  

What does this have to do with insurance? Everything. Many people think they can’t get insured without a Spanish licence, but that’s not true.

Myth 2: “Insurers won’t cover foreign drivers”

Spanish insurers do cover expats and foreign drivers. Many even offer policies tailored to them.

The confusion often comes from miscommunication, or from insurers that simply don’t speak your language or understand expat needs. That doesn’t mean they won’t insure you—it just means the process can be trickier without the right help.

At The Insurance Centre, we specialise in helping expats find car insurance that suits their licence, their documents, and their language.

Myth 3: “I need a Spanish NIE or permanent residency to get car insurance”

You don’t need to be a permanent resident, but you’ll need to prove your legal stay in Spain—this could be a NIE (temporary or permanent) or proof of address.

Having a Spanish address also helps, especially for paperwork. But if you’re still getting settled, there are still options available.

Myth 4: “I can only insure a car with Spanish plates”

In most cases, yes—you’ll need to register your car in Spain to get full insurance here.

However, if you’ve just arrived with a foreign-registered vehicle, there are temporary or transitional insurance options while you complete the registration process.

Be aware: Driving a foreign-plated car for too long in Spain without legalising it could result in fines, and your insurance might be invalid in case of an accident.

Myth 5: “Basic insurance covers everything I need”

Third-party insurance (the legal minimum in Spain) only covers damages you cause to others—not to your own car.

And it often doesn’t include things like roadside assistance, legal help, or theft protection.

As an expat, you may need extra coverage:

• To travel between countries
  
• To get help in your language
  
• To have access to support if you’re unfamiliar with Spanish legal processes
  

There are affordable options with broader coverage, especially if you go through an expert who understands expat needs.

Myth 6: “Driving in Spain is just like home, so insurance doesn’t matter much”

Spain’s traffic laws and insurance system have their own rules, and they may differ a lot from what you’re used to.

For example:

• Claims in Spain often separate property and personal injury processes
  
• The bonus-malus (no-claims discount) system is different from the UK, US, or Germany
  
• The “amicable accident report” (parte amistoso) is a crucial document—and you need to know how to fill it out properly
  

Having a policy that includes legal guidance and support in English (or your language) can save you time, money, and stress if something goes wrong.

Myth 7: “It’s better to buy insurance directly from a Spanish company”

Not always.

Some traditional Spanish insurers may:

• Refuse to recognise your foreign no-claims bonus
  
• Not accept your driving licence
  
• Have customer service only in Spanish
  
• Confuse you with unnecessary paperwork
  

Working with a specialised broker—like The Insurance Centre—means:

• We speak your language
  
• We understand the unique needs of expats
  
• We compare multiple insurers to find the right fit for you
  

And we make sure you know exactly what you’re covered for—no surprises.

So, how do I choose the right insurance as an expat?

Here’s a quick checklist:

1. ✅ Make sure they accept your current driving licence
   
2. ✅ Ask if they offer support in your language
   
3. ✅ Find out what documents they need
   
4. ✅ Understand exactly what’s covered (and what’s not)
   
5. ✅ Ask if you can transfer your no-claims bonus from abroad
   

And above all—don’t rely solely on Facebook groups or random forums. Always double-check.

Getting car insurance as an expat in Spain isn’t as hard as it seems. Most of the confusion comes from old info, assumptions, or bad experiences.

The truth is:

• You can drive with a foreign licence (at least temporarily)
  
• You can get insured, even without permanent residency
  
• You don’t need to go it alone
  

At The Insurance Centre, we’re here to guide you through the process—clearly, in your language, and with no hidden surprises.

Got questions? Not sure if your licence is valid? Wondering what coverage fits your situation?
Reach out to us—no pressure, no obligation. Just helpful advice.