Common mistakes taking out insurance as an expatriate in Spain
The most common fines for expats in Spain and how your car insurance can help
One of the biggest mistakes expats make when moving to Spain is assuming their home country insurance will work here. It won’t. And discovering this after an accident or medical emergency can cost you thousands of euros you didn’t budget for.
If you’re an expat in Spain, you need specific insurance policies that comply with Spanish legislation and actually protect you. The mandatory ones are car insurance (if you drive) and health insurance (if you’re applying for residency), but there are three more you should consider depending on your situation: home, pets and life. The good news is that in Spain prices are generally lower than in other European countries, and you can contract everything in English with agents specialized in expats.
This guide explains exactly what insurance you need, how much it costs, what it covers and how to contract it without complications or surprises.
What insurance do you need as an expat in Spain?
Not all expats need the same insurance. It depends on your personal situation, whether you have a car, whether you’re an owner or tenant, and whether you have pets or family.
Health insurance: mandatory for residents
If you’re going to apply for residency in Spain, you need private health insurance that covers all medical contingencies without copayments. It’s one of the requirements they’ll ask for at the immigration office. Even if you later access the Spanish public system, this private insurance gives you immediate access to specialists and hospitals without waiting lists.
Prices vary depending on your age and coverage. A 40-year-old person can find policies from 50 euros per month with complete coverage in private hospitals. Families typically pay between 150 and 300 euros monthly depending on the number of members and extra coverage like dental or optical.
Important aspects you should verify: that it covers complete hospitalization, 24-hour emergencies, GP, specialists without consultation limits, and that it doesn’t have long waiting periods for pre-existing conditions. Many Spanish insurers have agreements with the main private clinics on the Costa del Sol, Valencia, Barcelona and Madrid.
Car insurance: mandatory if you drive
If you have a car in Spain, insurance is mandatory by law. You cannot drive without it. At minimum you need third party insurance (civil liability), but most expats choose comprehensive insurance, especially during the first years while familiarizing themselves with Spanish roads.
Prices start at 200 euros per year for third party and can reach 600-800 euros annually for comprehensive, depending on the car’s value, your driving history and your age. If you bring a no-claims bonus from your country, many insurers recognize it and give you discounts.
When contracting your car insurance, make sure it includes 24-hour roadside assistance, replacement car in case of accident or breakdown, legal defense and coverage throughout Europe if you travel. It’s also useful to have driver and windscreen coverage, especially in rural areas where flying stones are common.
Home insurance: essential protection
Although technically not mandatory for owners, home insurance is fundamental. If you have a mortgage, the bank will require it. If you’re a tenant, many landlords will also ask for it, or at least require you to have contents insurance.
Basic home insurance for a 100 square meter apartment costs between 150 and 300 euros per year. This covers structural damage, contents, civil liability and home assistance. Large houses or villas with pools can cost between 400 and 800 euros annually.
Important coverages are: water damage (very common in Spain), theft, fire, weather events, civil liability (if someone gets injured on your property), 24-hour assistance for plumber, electrician or locksmith. If you live in a rural area, verify it covers damage by animals or forest fires.
Pet insurance: peace of mind for your best friend
If you have a dog or cat, pet insurance protects you from unexpected veterinary expenses and, in the case of dogs, covers your civil liability if your pet causes damage to third parties. In some autonomous communities, civil liability insurance is mandatory for certain dog breeds.
Prices range from 10 euros per month for basic coverage to 40-50 euros monthly for complete coverage that includes surgeries, chronic illnesses and specialized treatments. Civil liability is normally included and covers up to 150,000 euros in damages.
Verify that your policy covers accidents, illnesses, emergency surgeries, oncological treatments and doesn’t have excessive waiting periods. Some policies also include search expenses if your pet gets lost and coverage for travel throughout Europe.
Insurance table according to your expat profile
| Profile | Mandatory insurance | Recommended insurance | Approx. monthly cost |
|---|---|---|---|
| Single without car | Health | Home (contents) | 60-100€ |
| Single with car | Health + Car | Home | 90-150€ |
| Couple without children | Health + Car | Home + Life | 150-250€ |
| Family with children | Health + Car | Home + Life | 250-400€ |
| With pet | Health + Car | Home + Pets | 120-200€ |
| Retirees | Health | Home + Life + Funeral | 150-300€ |
Frequently asked questions about insurance for expats
Can I use my insurance from my country in Spain? It depends on the type of insurance and the country. The European Health Insurance Card gives you access to the Spanish public system for temporary stays, but it’s not valid for permanent residents. Foreign car insurance is generally not valid if you reside in Spain for more than 6 months per year. You need to register your car and contract Spanish insurance.
How does my age affect the price of health insurance? Age is the most important factor in pricing. A 30-year-old person might pay 40 euros per month, while someone aged 65 might pay 150 euros or more for the same coverage. That’s why it’s advisable to contract your insurance as soon as possible to lock in a lower base price.
What happens if I have a pre-existing medical condition? Most insurers accept pre-existing conditions, but may apply waiting periods (normally 6-12 months) before covering them. It’s important to be honest in your application, because if you omit information, the insurer can reject your future claims.
Do I need a NIE to contract insurance in Spain? For most insurance yes, you need a NIE (Foreigner Identity Number). It’s one of the first procedures you should do when arriving in Spain. Some insurers specialized in expats can process your application with your passport while you process the NIE.
Can I pay insurance monthly or must I pay the whole year? Most insurers offer monthly payment through direct debit. Some give discounts of 5-10% if you pay the full year in advance. Monthly payment is more convenient to manage your budget.
Common mistakes you should avoid
Many expats make the same mistakes when contracting insurance in Spain. The first is waiting to have a problem before contracting insurance. If you have a car accident without insurance, fines start at 600 euros and can reach 3,000 euros, plus damages you’ll have to pay out of pocket.
The second mistake is choosing the cheapest policy without reading the exclusions. Not all cheap insurance is a bargain. Many have high deductibles, important exclusions or very limited coverage. Always read what your policy covers and doesn’t cover.
The third is not updating your insurance when your situation changes. If you buy a new car, move to a bigger house or adopt a pet, you need to inform your insurer. Otherwise, you might not be covered when you need it most.
How to contract your insurance without complications
The easiest way is to work with an agent specialized in expats who speaks your language and understands your specific needs. A good agent will explain the options, compare prices from different insurers and help you with all the documentation in Spanish.
Look for agents with real experience working with expats, who have a physical office in Spain and offer service in your language. It’s also important that they help you in case of claims, because that’s when you’ll need their support most.
Before contracting any insurance, request several quotes, compare not only the price but the coverage, verify there are no exclusions that affect you, ask about discounts for combining several insurance policies with the same company, and make sure you fully understand the waiting periods and cancellation conditions.
Take the next step
Now that you know exactly what insurance you need as an expat in Spain, it’s time to protect your new life without overpaying or getting surprises. Insurance is one of those things you hope you’ll never need, but when the moment comes, the difference between having it or not can be thousands of euros.
At The Insurance Centre we’ve been helping expats like you find the perfect coverage for their situation for 30 years. We speak your language, we know the best Spanish insurers and we accompany you in every step, from contracting to any claim you need to make.
Ready to protect your life in Spain? Contact us today and receive personalized quotes without commitment. You can call us at 952 451 033, send us a WhatsApp at 619 000 712, or email us at info@theinsurancecentre.net. We’ll respond in your language and help you choose exactly what you need.
About Our Team
At The Insurance Centre, we’ve been helping clients since 1999 with friendly, professional, and multilingual insurance services tailored especially for expatriates in Spain. We work with top-tier, reputable insurance providers and have proudly received awards for excellence in customer service and expat insurance for the past 10 years.
We are fully registered with the Dirección General de Seguros (DGS) and are members of the Colegio de Mediadores. Our team speaks English, Spanish, French, and Swedish, ensuring clear and confident communication with clients from around the world.
