Expat car insurance in Spain: Everything you need to know

Last updated on March 31st, 2020 at 10:26 am.

If you’re relocating to Spain, it’s likely you’ll want to take your car with you if you currently live in Europe. Considering measures put in place in the European Union and the EEC, many people may assume that they don’t need to buy Spanish car insurance. To a certain extent, this is true, as expat car insurance from your home nation will include third party cover. However, there is a limit to the amount of time you can drive your car in Spain without notifying the Spanish authorities. 

From here, the law requires that you purchase Spanish car insurance. In Spain, every car and trailer that enters and remains the country must be insured. You can face fines of up to €3,000 or even imprisonment if you drive without insurance. In this article, we explain how to insure your car in Spain, the associated costs and how it’s calculated.

How do I insure my car in Spain?

If you have taken out an insurance policy in the UK or another EU country, you will have third-party insurance in the EU, EEC and Switzerland for a limited period. Most insurers will offer up to 90 days of inclusive cover in a foreign country. In the UK, some insurers will offer cover for up to six months of the year. However, after this point, you have to register your car with the Spanish authorities. Furthermore, if you intend to apply for residency, you should register your car with the local traffic department within 30 days of arrival.

It is important to note that you cannot insure a foreign-registered car with a Spanish insurance company. In order to obtain legitimate Spanish insurance, you must first register the vehicle with the authorities. Remember, EU rules require all vehicles to be insured in the country in which they’re registered. From here, the process of purchasing car insurance is very similar to the rest of the EU, with options including:

• Third-party (seguro obligatorio – which is the minimum required by law).
• Third-party, fire & theft or part comprehensive (responsabilidad civil obligatoria, incendio y robo).
• Comprehensive (todo riesgo).
• Roadside assistance (asistencia en viajes).

How much does expat car insurance cost?

The good news is that insurance premiums in Spain are amongst the lowest in the EU. Therefore, you may even save some money compared to expat car insurance. However, costs will vary depending on the provider, the type of cover you choose and your vehicle. In Spain, cars fall into eight categories based on their age, repair costs and engine size. Some companies will also take into account how much the car is driven per year, whether the car is used for business or leisure, and if it’s kept in a garage overnight. 

Furthermore, as you might expect, the record of the driver will be taken into account. Drivers under 25 or with less than three years’ experience are likely to have higher premiums. Equally, if you have any drink or dangerous driving convictions your premium will be higher. However, there is one variable that might surprise you; if you live in a rural area, your insurance is likely to be cheaper. By contrast, premiums in areas like Madrid tend to be higher.

Make sure you’re covered

Certainly, the EU has introduced many useful regulations that allow drivers to cross borders with expat car insurance. However, if you are moving to Spain, it essential to make sure you take out Spanish insurance on your foreign vehicle. Although it might seem like an intimidating bureaucratic landscape to navigate, there are in fact many similarities between Spain and other European nations. Once you’re covered, you can be confident you fully comply with Spanish law and are covered in case of an accident.