Introduction

Selecting car insurance in Spain can be a challenging task due to the multitude of options available. Spanish law mandates that all vehicles must be insured to a minimum of third-party liability coverage. Those caught driving without insurance can face penalties of up to €3,000. It's crucial to note that car insurance is associated with the vehicle, not the driver. Therefore, a separate policy is required for each vehicle. If you decide to purchase a car in Spain, obtaining insurance for it is a necessary step. Keep reading to gain further insights into car insurance in Spain and make an informed choice regarding the ideal coverage for your needs.

Types of Spanish Car Insurance

Compulsory Third-Party Car Insurance (seguro a terceros)

Third-party car insurance provides coverage for damages and expenses related to third parties, encompassing harm to their vehicles, personal injuries, and legal costs. However, it usually doesn't cover damages to you or your own vehicle.

Additional features like roadside assistance can be added by paying extra.

Opting for third-party insurance is advisable when you have a low-cost vehicle, minimizing the risks. If repairs are costly, replacing the vehicle with a similar one won't incur significant expenses.

Third-party fire and theft (responsabilidad civil obligatoria, incendio y robo)

Enhance your third-party coverage to include compensation for losses due to fire or theft. Note that this doesn't encompass damages resulting from collisions or accidents involving your vehicle.

Comprehensive Car Insurance (seguro a todo riesgo)

Opting for comprehensive insurance ensures coverage for all expenses arising from an accident, regardless of fault, encompassing both your own costs and those of third parties.

While premiums are higher compared to third-party insurance, the added peace of mind is invaluable. Particularly for newer or high-value vehicles, comprehensive coverage is often a prudent choice.

However, it's vital to note that driving illegally and causing an accident will nullify your insurance coverage. For instance, if you were driving over the legal alcohol limit or speeding, you won't receive any payout.

What does the term "insurance excess" mean?

Car insurance excess is the sum you're responsible for when making a claim. Higher premiums accompany lower excess amounts, which can range from €300 to €500, for instance.

For minor claims, you might opt to not go through insurance, considering the potential impact on future premiums. Your perspective on this sum should align with your excess.

Is a few hundred euros a reasonable excess? If it approaches €1000, you might find it too substantial to cover independently.

The balance between lower premiums and a higher excess hinges on your risk assessment. The choice is yours when selecting your car insurance in Spain.

Car Insurance for Non-Residents in Spain

If you're relocating to Spain from another EU country, you can maintain your existing car insurance; just ensure it includes international coverage.

For individuals from non-EU nations, including the UK, using their home country's insurance is possible for a limited period (typically 3-6 months). However, upon settling in Spain, it's essential to register your vehicle and acquire Spanish car insurance once this grace period ends.

Comparing Spanish Car Insurance

Obtaining quotes from multiple insurance providers is advisable, given the significant variation in car insurance prices across Spain. The positive news is that prices have decreased since 2006.

As a general reference, anticipate spending approximately €350-€550 for comprehensive insurance coverage annually. However, the final cost is influenced by various typical risk factors, including vehicle value, driver profile, and age. Additionally, your location within Spain matters, with larger cities often incurring higher premiums.

Excess Car Rental Insurance in Spain

Numerous renters in Spain have tales of facing a significant excess fee at the end of their car hire. In the event of damage to the rental vehicle, you might be responsible for an excess payment before insurance coverage kicks in. This holds true even if the damage is not your fault.

What exactly is an excess? It's a predetermined sum you agree to pay to your insurer if you make a claim. Typically, the higher the excess, the lower the insurance premium.

The excess amount can vary widely, ranging from €500 to several thousand euros, contingent on the rental company and the type of vehicle you choose. When you pick up the car, the rental agency generally presents you with two options:

1. They may place a substantial hold on your credit card (often around €1000) and charge the card for any damages upon return.
2. They might offer you excess insurance, which tends to be quite costly. Notably, many car rental companies, particularly GoldCar, employ high-pressure tactics to convince you to opt for the most expensive coverage.

If you frequently rent cars throughout the year, an annual policy could lead to savings. Most policies cover excesses up to around €10,000 and may also encompass additional charges imposed by the rental company, such as tire, undercarriage, and windscreen damage. We personally use iCarHire when renting cars.

It's important to note that even with excess insurance, the car rental agency will still put a hold on a certain amount on your credit card. You'll need to settle the initial damage payment in case of an accident. They will charge your card, and later, you can seek reimbursement from your insurance post-trip.

Choosing to purchase excess insurance directly at the rental counter eliminates the need for the car rental company to place a hold on your card. However, it's worth mentioning that excess insurance from the rental company is typically more expensive compared to purchasing from a specialized provider before your journey.

Selecting Car Insurance in Spain – A Handbook for Expats

Review the fine details! Understand the inclusions and exclusions.

• Compare the excess amounts specified in the policies.
• Check if it covers aspects like tires, undercarriage, and windscreen.
• Inquire about the availability of a no-claims protection policy.
• Find out if roadside assistance is part of the package or its additional cost.
• Confirm if the policy offers personal accident coverage to handle medical expenses.

Applying for Car Insurance in Spain

If language poses a challenge, opt for a company that facilitates online application to streamline the process significantly.

Essential requirements for application include:

1. Possession of a Spanish driving license or a license valid in Spain (like an EU license). Note that a UK driving license is no longer sufficient post BREXIT.
2. Spanish residence card (NIE or TIE).
3. Proof of your Spanish address.
4. Spanish bank account details.

Thank you for reading our Car Insurance in Spain guide. You're now well-equipped to choose the ideal car insurance policy.