An easy guide to car insurance in Spain for expats

Acquiring car insurance for the first time in Spain can feel a little daunting, especially if you’re not speaking Spanish and are used to the system on your home turf. This guide aims to make the process simpler and offers tips for overcoming common niggles.

How Spanish car insurance compares to UK car insurance

At first glance, car insurance in Spain might seem familiar to those coming from the UK. Both countries offer similar tiers of coverage: third-party (the legal minimum), third-party fire and theft, and comprehensive insurance (known as todo riesgo in Spain). However, there are some key differences that might catch you off guard.

For starters, you may be used to automatic renewals in the UK; keep an eye on how your Spanish insurance contract works as it often renews without prior contact, and cancelling might require advanced notice.

Also, you may have heard that Spanish car insurance is tied to the car, not the driver. This was once true, but not anymore. In the UK, insurance usually follows the driver, so switching between cars or letting someone borrow your vehicle may require special permissions from your car insurance provider. In Spain, many policyholders also follow this approach.

Why third-party car insurance is the most common in Spain

Unlike the UK, where many drivers opt for fully comprehensive coverage, third-party insurance is by far the most common choice in Spain. This is largely due to the fact that Spain’s minimum required insurance is third-party liability, known as seguro obligatorio, which is a legal requirement for all vehicles. It’s designed to cover any damages you might cause to others, but it doesn’t protect you or your own vehicle.

This type of insurance is not just the cheapest option, but it’s also a more practical choice for the many Spaniards (and expatriates) who drive older cars. A big difference between Spain and the UK for example, is that Spanish car owners tend to run their vehicles into the ground before buying a new one. If your car isn’t brand new or high-value, the additional cost of comprehensive coverage might not be worth it. Instead, many opt to protect only against third-party damages, which keeps premiums affordable. Expatriates who are used to comprehensive UK policies might be surprised by this, but for those driving older vehicles, it makes perfect sense.

Common car insurance niggles in Spain

One common frustration among expatriates is that getting credit for your no-claims bonus isn’t always straightforward. In the UK, this discount can make a big difference to your premiums, but Spanish insurers might not recognise your UK record at first. However, some providers like Linea Directa are expat-friendly and can be more flexible if you provide proof of your claims history. Make sure to ask about this upfront when shopping for quotes.

Another grumble is understanding the policy documents, especially if your Spanish isn’t up to scratch. While some of the bigger companies offer English-language services, smaller local providers might not. If you’re unsure about the terms, don’t hesitate to get help from a translator or seek out an English-speaking broker.

How much does Spanish car insurance cost?

Compared to the UK, car insurance costs in Spain can feel refreshingly affordable. On average, you can expect to pay between €250 and €400 a year for third-party insurance, depending on factors like your car’s age, your driving experience, and where you live. Cities with heavy traffic, like Madrid and Barcelona, can drive premiums higher, so it’s a good idea to shop around.

If you’re looking to save, increasing your exceso (excess) is one way to lower the premium, much like in the UK. Additionally, bundling your car insurance with other policies (such as home or health insurance) with the same provider can lead to discounts. You may also benefit from having an older car or opting for a lower-value vehicle, as the premium for comprehensive coverage tends to rise with car value.

How to get Spanish car insurance

The process of applying for car insurance in Spain is relatively straightforward, but make sure you have all the necessary documents ready:

• NIE number (Número de Identificación de Extranjero)
• Valid Spanish, EU or UK Driving Licence
• Vehicle registration documents
• ITV (MOT equivalent) certificate
• Proof of address

For UK expatriates, switching to a Spanish driver’s licence can sometimes reduce your premium, as it shows you’ve fully integrated into the system. However, this isn’t a requirement to get car insurance.

Car breakdown and recovery in Spain

In both Spain and the UK, major breakdown recovery services exist. Generali for example, offers roadside recovery services similar to the UK’s AA and RAC.

However, in Spain, these services are often tied directly to your car insurance policy rather than as separate membership services, which is commonplace in the UK.

Therefore, when shopping around for your car insurance in Spain, you should carefully check whether the policy includes Asistencia en carretera (roadside assistance)​.

One major difference is that roadside repairs are less common in Spain. While in the UK, mechanics may attempt to fix your car at the roadside, Spanish services often default to towing your vehicle to the nearest garage, especially in more rural or remote regions​.

In Spain, when your car is towed, it is usually taken to the nearest authorised garage. Unlike in the UK, where you can often choose where your car is towed.

In remote regions, this can result in longer wait times for towing services. Expatriates who are living in rural areas should be prepared for potential delays, particularly during peak summer.

Courtesy cars in Spain

The availability of courtesy cars in Spain can differ significantly from what UK expats may be used to. In the UK, courtesy cars are often provided by breakdown services like the AA or RAC as part of their membership packages. In Spain, courtesy cars are more commonly provided through fully comprehensive insurance policies – seguro a todo riesgo – rather than through roadside assistance memberships.

For information and tips on buying a second-hand car in Spain, please view our guide.