There are various types of car insurance in Spain available and the purpose of this article is to go through some of the differences.
Whilst we all want to pay a low price for our car insurance in Spain make sure it includes what you would expect. You only find out if your insurance is any good when you make a claim.
In Spain there is a legal requirement to insure your vehicle. Whilst a basic policy may allow you to circulate on the road it probably won’t offer you the cover most people would want from an insurance policy.
The policies available include:
- third party only,
- third party, fire and theft,
- third party, fire, theft and total loss and
- fully comprehensive with or without an excess.
In addition to these main products, it is possible to add an array of add-ons to tailor the insurance to the client’s needs.
Let’s start with the main policies for car insurance in Spain:
This is the legal minimum required in Spain. With this type of cover you are insured if you damage another person’s vehicle, for example. In simple terms, if there is a claim and it is deemed your fault the insurance company will pay out. The other driver will have their vehicle repaired. However, any damage to your vehicle will have to be paid by you.
This type of policy only covers third party damage. Whilst it is the cheapest type of policy it could leave you with a large repair bill.
A basic third party policy will also not cover your vehicle in the event of theft or damage by fire.
Third Party Fire and Theft
This level of car insurance in Spain provides the legal minimum of third party insurance. In addition, you have the added benefit that if the vehicle is destroyed by fire or stolen that you are covered.
Third party, fire, theft and total loss
One more step up and you can also include total loss cover. This is not fully comprehensive cover. The difference here is that the additional of total loss cover on top of the third party protections explained before. In the event of the insurer declaring the vehicle a write-off (not worth repairing) then they will pay out an agreed sum to the policy holder. However, if you damage the vehicle but it is not a total loss then you will have to pay to repair the damage.
If your car is new or fairly new, then you will probably want to consider fully comprehensive car insurance in Spain. Not only do these policies cover your obligations in respect of damage to others it also includes protection for your own damage. So even if an accident is deemed your fault you will have a level of protection for your vehicle.
If for example, you drove into the back of another car then it will almost certainly be deemed your mistake. As a result, your insurance company will liaise with the other person’s company to repair their vehicle. In addition, your insurance company will organise the repair of your vehicle. All you have to do is pay the excess. This the amount you pay to repair your vehicle before the insurance company pays. If the damage to your car is less than this amount, then it will not be worth making a claim and you can pay for the repair. If, however, it the repair bill is higher than the excess then the insurance company will pay the difference.
The level of excess is agreed by you with the broker at the outset. For a new car it is possible to ask for an excess of zero. The insurance company would then pay all the cost of the damage, even if the accident was your fault. However, in order to reduce the price of car insurance in Spain most people opt for an excess of between 100 and 300 euros. Clearly the higher the amount of excess the lower the premium.
Accident and breakdown assistance, windscreen protection and courtesy cars.
These days a lot of insurance companies include these services as standard. However, not all insurance companies do. If they are included, we do not recommend removing them and if they are not we suggest you ask for them to be included.
It is illegal to tow a car in Spain. Therefore, if you do not have accident or breakdown recovery you will have to pay. The tow truck may drive you first to the cash machine before taking you to your destination or the garage to ensure payment.
If a stone hits your windscreen, then your visibility may be effected or the crack may gradually get worse. If it is included in your insurance you can usually make an appointment or possibly roll up to a specialist windscreen replacement centre, such as Carglass. They will repair or replace your windscreen and organise with the insurance company directly to receive payment.
We are all reliant on our vehicles to get to work, to take the children to school or to do the weekly big shop. If it is going to be in the garage for a number of days whilst it is being repaired, then if you don’t have a courtesy car you will have to rent one. In some tourist areas this can be difficult in the summer and also very expensive.
Remember if the accident was not your fault then you do not pay for the repairs to your vehicle.