Guide to Insurance in Spain

Living in Spain inevitably brings up issues of insurance, be it household, health, life or motor insurance and don´t forget travel insurance for visits to the UK or your home country.

Insurance Brokers

The easiest way to obtain Insurance is from Brokers who speak English. There are many Insurance Brokers in the Costas and Islands and also in the major cities of Spain.

If you buy property in Spain with a mortgage will be required to take out a Home Owners Insurance Policy and also a Life Insurance policy.

Different types of insurance you may need

Health Insurance

Private medical and health insurance is also available and can be obtained from many familiar English speaking Health Insurance companies. Costs are very competitive and enable you to have all the advantages of first class treatment with English speaking Doctors, Consultants and Surgeons.

It is also worth pointing out that health insurance in Spain is generally much cheaper than the UK.

Car Insurance

Car Insurance and Motorcycle Insurance is mandatory as with all European countries.

As of 1995, Spanish law requires that all vehicles be covered with at least the minimum insurance that would compensate any damages incurred against a third party. Insurance is also mandatory even if your car is kept off the road.

You are required by law to carry your licence and Insurance policy with you in your car. Be aware that the Spanish police, particularly the Guardia Civil, are taking special care to find drivers without insurance. There is an agreement between insurance companies and the police that allow the police to check the records of the Insurers in order to identify uninsured vehicles.

The price for driving without insurance ranges from 600 to 3,000 euros and the exact amount of the fine depends on what type of vehicle you are driving, what the vehicle is being used for and how long you have been driving without insurance.

Further, if your car is towed by the ´Grua´ and taken to the Police pound for whatever reason, and upon collecting it cannot produce the certificate of insurance or relevant documents such as the Permissio de Circulacion and an up to date ITV (Spanish MOT equivalent), they will not let you take the car away and they will charge you a daily rate for storing the car. It can get very expensive indeed.

Specialist motor insurance for ex-pat cars

Did you know that there are insurance companies who specialise in insuring vehicles registered in the UK (with UK license plates). Make sure you read the small print in your policy though. You will probably see a clause that states you have been driving the car in Spain for less than 1 year.

Should you have an accident you will be required to fill out an incident report which will also ask you for details of either the Spanish ITV or the UK MOT.

Be advised that if your UK MOT runs out and you don’t have a valid ITV certificate, your insurance will be invalid.

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