How car insurance works in Spain

How car insurance works in Spain

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In Spain, as in many countries, insurance is a vital aspect of responsible vehicle ownership.

The Spanish insurance market follows a structure similar to other nations, with a focus on providing coverage options that cater to diverse needs.

The obligation for getting the insurance is for the owner of the car. Although another person or legal entity could be the policyholder, the owner details must appear always on the policy.  

The civil liability will always be the responsibility of the car owner. In case of a fine it  is the owner who will be notified by the Road Traffic Authorities. 

Another important thing to understand about your car insurance in Spain is that the car must be always insured, even if it is kept in a garage for a long time or you don´t use very often or even you don´t use at all, if the car is not officially off the road with the Traffic Authorities then there must be an insurance policy in force. 

Types of car insurance avalibles in Spain

In Spain, there are primarily three types of car insurance: 

THIRD PARTY INSURANCE:  This is the minimum legal requirement and covers damages to third parties, including people and property

Limitations: it generally doesn´t cover damages to your own vehicle

THIRD PARTY FIRE AND THEFT:  offers the third party cover plus cover in case of theft, total or partial and cover for fire, total or partial of the insured vehicle .

 The damages caused for attempt to theft are also covered and usually without any excess. 

FULLY COMPREHENSIVEOffers broader protection, encompassing  damages to both third parties and your own vehicle. Usually you add an excess in order to reduce the premium, as higher excess the premium will be lower.

In this type of insurance is important to declare all the accessories installed on the car, as this is going to increase the value of the car and this is the way to insure the real value of the car.

Beyond these, drivers can customize policies with additional options such as:

ROADSIDE ASSISTANCE: providing  services relating to the car and to persons. The services may be requested by the insured party calling to the provided roadside assistance help telephone numbers. Most of the companies don´t accept the reimbursement of the invoices if they haven´t been contacted before.  The cover could be only in Spain or also abroad.

Service relating to the car:

Technical help on the roadside, for example to start the battery or change a tyre



Send replacement parts or even the keys, etc.

Service relating to persons:

Medical and health assistance

Send medication

Convalescence in a hotel

Repatriation,  etc. 

Windows breakage: replacement costs caused  by  fortuitous breakage of windscreens, windows or even sunroof

Fine reclamation:  legal consultation via telephone, preparation of reports, drafting documents in opposition, defence depositions and appeals to higher courts, submission of documents, etc.

Animal collision damage:  Damage suffered by the insured vehicle on roads suitable for traffic, as a consequence of a traffic accident due to a collision with a domestic or game animal.

Hail Damage:  damage caused to the vehicle by the direct action of falling hail stones

Luggage coverage: payment of compensation if as a consequence of an accident, fire, explosion,  theft,  the personal effects or luggage of the occupants of the insured vehicle are destroyed damaged or have disappeared.  Usually excludes money,  jewellery, precious objects, hearing and seeing devices ,etc….only suitcases, clothes, shoes, toiletries and cosmetics, 

Replacement vehiclein case of accident or breakdown the company provide a courtesy car for the period of time that appears on the policy. 

Understanding these options allows drivers to tailor their coverage based on individual needs and preferences on the Spanish roads.

It is really important you know all the terms of the policy you are buying, the clauses are different on each Company, and the additional covers are also different. Check everything before taking it to be sure the product is what you need and contact with an expert company such as Bmi Brokers, where we will provide all the assistance you may require.