What you need to know about car insurance in Spain as an expat

Relocating to Spain as an expat comes with many exciting opportunities, but also some challenges — like navigating the world of car insurance. If you plan to drive in Spain, understanding how car insurance works here isn’t just practical; it’s legally essential. But where should you start? Let’s break it down step by step so you’re ready to hit the road with peace of mind.

Why is car insurance mandatory in Spain?

In Spain, car insurance is a legal requirement for anyone who owns or drives a vehicle. The minimum level of coverage required is third-party liability insurance (known as Seguro de Responsabilidad Civil). This protects you financially if you cause damage to another person’s property or injure someone in an accident.

Driving without insurance isn’t just risky; it’s illegal. If you’re caught, you could face hefty fines, and your vehicle might even be impounded. For expats, this makes understanding and securing the right insurance especially important.

Key things expats need to know about car insurance in Spain

1. Types of Car Insurance in Spain

Car insurance policies in Spain typically fall into three main categories:

• Third-Party Liability Insurance: This is the legal minimum. It covers damage or injuries you cause to others but doesn’t protect your own vehicle.
• Third-Party, Fire, and Theft Insurance: This includes the basics of third-party liability but adds coverage for damage caused by fire or theft of your car.
• Comprehensive Insurance (Todo Riesgo): This is the most extensive coverage, protecting your vehicle against a wide range of risks, including accidents where you are at fault.

2. Legal Requirements for Expats

To drive legally in Spain, you must meet these conditions:

• Have Valid Documentation: You’ll need a valid driver’s licence. EU licences are accepted, but if you’re from outside the EU, you may need an international driving permit (IDP) or a Spanish licence.
• Register Your Vehicle: If you’ve brought your car from abroad, it must be registered in Spain after six months. This process includes passing the ITV (Inspección Técnica de Vehículos), Spain’s equivalent of an MOT test.
• Obtain Spanish Car Insurance: Even if you already have insurance from another country, it may not be valid in Spain. You’ll need a local policy tailored to Spanish regulations.

3. How to Choose the Right Insurance as an Expat

Understand Your Needs

Start by asking yourself:

• How often will I use my car?
• Is my car new or second-hand?
• Do I need additional coverage for theft or natural disasters?

Research Providers

Many Spanish insurance companies cater specifically to expats. They often offer policies in English, making the process much easier if you’re not fluent in Spanish. Some well-known insurers include Mapfre, AXA, and Liberty Seguros.

Compare Quotes

Shop around! Prices can vary widely depending on your vehicle’s make and model, your driving history, and the level of coverage you choose. Online comparison tools can save you time and money.

Check for Discounts

Some insurers offer discounts if you have a clean driving record or if you bundle your car insurance with other policies, such as home or health insurance.

4. Steps to Get Insured as an Expat

Step 1: Gather Your Documents

You’ll need:

• A valid driver’s licence
• Proof of vehicle registration (or import documents if your car is from abroad)
• Proof of address in Spain (like a utility bill or rental contract)
• Your NIE (Foreigner Identification Number)

Step 2: Choose a Policy

Decide on the level of coverage that fits your needs and budget. Remember, third-party liability is the minimum requirement, but more comprehensive coverage may save you money in the long run.

Step 3: Contact an Insurance Provider

Reach out to an insurer and provide the necessary information about you and your vehicle. Many companies allow you to complete this process online or over the phone.

Step 4: Pay and Receive Your Policy

Once you’ve paid the premium, you’ll receive a policy document. Keep this in your car at all times, as you may need to present it during a roadside check.

5. What Happens in Case of an Accident?

If you’re involved in a car accident, follow these steps:

1. Stay Calm: Ensure everyone’s safety and call emergency services if needed.
2. Document the Incident: Fill out a European Accident Statement (Declaración Amistosa de Accidente), which helps insurers determine fault. Most insurers provide this document.
3. Notify Your Insurer: Report the accident to your insurance provider as soon as possible, ideally within 24 hours.

Tips for expats to save on car insurance in Spain

• Choose a Higher Excess: Opting for a higher deductible can lower your premium.
• Install Safety Features: Cars with alarms or immobilisers may qualify for discounts.
• Drive Safely: Avoid accidents to maintain a clean driving record and qualify for lower rates.
• Pay Annually: Paying your premium in one lump sum is often cheaper than monthly instalments.

Getting car insurance in Spain as an expat doesn’t have to be overwhelming. By understanding the legal requirements, choosing the right policy, and following the proper steps, you can drive confidently knowing you’re protected. Remember, The Insurance Centre is here to help expats like you navigate these challenges. Reach out to us for personalised advice and support.

So, are you ready to take the wheel? With the right car insurance in place, you can enjoy the freedom of driving in Spain without the stress.