Car insurance

Car insurance for expats in spain

In Spain, just like on Mallorca, it’s essential to have car insurance, and it can only be obtained if your vehicle has a Spanish registration and license plates.

Any vehicle used by tax residents (residents) must be registered in Spain.

For young drivers in Spain, the cost of car insurance is significantly higher. This is mainly due to the higher claim rates among young drivers. Some insurance companies have stopped offering coverage to drivers under the age of 25, or they will only issue the policy if it’s bundled with a life insurance plan.

However, we work hard to find the best options tailored to your needs, even for younger drivers. Our goal is to ensure you’re fully covered at competitive rates, with flexible policies designed to suit your personal circumstances. Whether you’re a new driver or have been on the road for years, we’ll help you navigate the sometimes tricky landscape of car insurance in Spain, so you can drive with confidence.

What sets us apart in car insurance:

1. Low Rates & High Savings: We work closely with insurers to get you special rates and help you save significantly.

2. Experts in All Vehicle Types: From standard cars, to luxury vehicles, and even car rentals groups.

3. Free & personalized advice in your language: Our consultation Is free and non-binding. We offer neutral guidance in your native language to help you make the best decisions.

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What benefits does our car insurance cover?

Third party liability:

  • Personal injury (incl. medical expenses, pensions, etc.)
  • Material damage (car repairs or whatever else was damaged)
  • Pure financial losses

Partially comprehensive cover:

  • Fire
  • Glass
  • Theft (incl. items attached to the car such as entertainment equipment, navigation systems, etc.)

Fully Comprehensive cover:

  • Available with or without excess
  • Damages on your own car

serviceplus, more than just standard

At Iberia insurance brokers customers receive an Iberia Service+. But what does that mean? It’s very simple, our customers are worth a lot to us, and so we want to offer our customers more service through the standard insurance service. Service for which no one of our customers has to pay extra or has to conclude an extra contract – just our service for you.

  • Selection of insurance from more than 10 different insurance companies
  • 24/7 hotline – free – Spain wide
  • personal consultation for the customer on spot
  • Cost-benefit analysis of the pension schemes with optimization suggestions
  • Advice in your language

Frequently asked questions about car insurance:

The car liability insurance in Spain not only provides the mandatory legal protection but also gives you peace of mind, knowing that you won’t be left alone in difficult situations.

  1. Personal injury: If you are involved in an accident and someone is injured, your third party insurance will take care of medical costs, hospital bills or necessary rehabilitation measures. This means you don’t have to worry about financial burdens in an already stressful moment.
  2. Property damage: Whether it’s another driver’s damaged car or damage to someone else’s property, the insurance will step in and cover the cost of repairs or replacement so you don’t have to pay out of pocket.
  3. Legal support: If legal problems or disputes arise, the insurance will be there to help you and cover legal and court costs. This way you are also legally protected and can rely on professional support.

  1. Fire: If your car is damaged or destroyed by fire – whether from a fire in the engine or an external incident such as vandalism – partial insurance will cover the cost of the damage. This is essential protection, especially in regions of Spain that are more prone to hot summers and occasional fires.
  2. Theft: If your vehicle is stolen, partial insurance in Spain will help to offset the loss. This protection is particularly reassuring in tourist areas where the risk of car theft can be higher.
  3. Natural damage: Spain can boast extreme weather conditions such as hail, floods or storms. Spanish partial insurance usually covers these natural hazards, which is a great advantage.
  4. Vandalism: Scratched paint or broken windows due to vandalism? Partial insurance protects you against the costs of such damage. An important aspect, especially in larger cities or in holiday regions.

  1. Accidental damage to your own vehicle: Whether it is an accident caused by yourself or an accident involving a hit-and-run by another road user – fully comprehensive insurance in Spain covers damage to your own vehicle, including repair costs or replacement in the event of a total loss.
  2. Theft and vandalism: If your car is stolen or damaged, whether by burglary, theft or deliberate vandalism, the insurance will step in. This can be a crucial protection, especially in urban areas or tourist hotspots in Spain.
  3. Damage caused by natural events: Spanish fully comprehensive insurance also covers damage caused by extreme weather conditions, such as floods, landslides, hail or storms, which are more common in certain regions of Spain (such as the coast or mountainous regions). This cover is often already included in the standard contract, which in Central Europe is often only offered as an additional option.
  4. Fire and explosion: If your vehicle is damaged by fire or explosion, the insurance will cover the cost of repairs or replacement. This is an important cover, especially in the hotter and drier regions of Spain, where fires are more common.
  5. Glass breakage: Damage to windows, such as stone chips or cracks in the windshield, is also covered. This cover is included as standard in many Spanish fully comprehensive policies.
  6. Damage caused by animals: If you have an accident with an animal – whether on country roads or in rural areas – the damage to your vehicle is also covered.
  7. Optional excess: In Spain you can often choose between different models, with or without an excess (franquicia). A higher excess lowers the monthly cost, while fully comprehensive with no excess is more expensive but offers the best protection.

In most countries, the damages of the injured road user are covered by the insurer of the person who caused the accident. This is regulated differently in Spain. The so-called “Convenio” is a framework agreement between all motor insurers licensed in Spain and stipulates that the injured party is compensated by their own insurer.

In Spain, you’re not allowed to tow a vehicle yourself, and there are some good reasons behind this rule, mainly focused on safety and regulations.

Unlike in some countries where grabbing a tow rope and pulling a friend’s car to the nearest garage might be a common practice, Spain takes a stricter approach. Self-towing is seen as too risky. The Spanish traffic laws specify that only authorized towing services can tow vehicles.

Why? First and foremost, it’s about safety. Towing a car without the proper equipment or experience can be dangerous. If the tow line isn’t secured correctly or the vehicle isn’t properly stabilized, it could easily lead to accidents—especially on Spain’s narrow, winding roads. Professional tow trucks are equipped with specialized gear to ensure the car is safely moved, something that’s hard to replicate with a DIY approach.

Then there’s the issue of road rules. Traffic in Spain, particularly in busy cities, can be chaotic. A self-towed vehicle could become an added hazard, slowing down traffic or causing confusion among other drivers. Also, for tourists or those unfamiliar with local driving customs, self-towing can add to the risk of miscommunication on the road.
So, if your car breaks down in Spain, it’s better to call a professional towing service. Not only will it help you avoid fines, but it also spares you the stress and potential dangers of trying to do it yourself.

Insuring young drivers between 18 and 25 in Spain can be tricky, and it’s not just because insurance companies want to make things hard—there are real reasons behind it. For starters, this age group is statistically involved in more accidents compared to older, more experienced drivers. That means higher risk for insurance companies, and as a result, the premiums for young drivers can be significantly higher.

In Spain, some insurers might even refuse to insure drivers under 25, or they require you to bundle your policy with something like life insurance to mitigate their risk. This can make finding the right policy a bit of a challenge for younger drivers.

How does this compare to the UK, Scandinavia, or Holland? Well, in those places, while young drivers do also face higher premiums, the market tends to be more flexible. For example, in the UK, options like black box insurance—where your driving is monitored to determine your premium—are more common, allowing young drivers to prove they’re responsible and lower their costs. Similarly, in places like Scandinavia and Holland, there’s generally more focus on safer driving incentives and even programs that reward young drivers who take advanced driving courses.

In Spain, these kinds of tailored options for younger drivers aren’t as widespread yet, so it can feel a bit more limited in terms of flexibility. All in all, it’s not impossible to get insured as a young driver in Spain, but it does come with a few more hoops to jump through compared to other countries.

  • The injured road user reports the damage to their car insurance company.
  • The insurance company then coordinates with the other party’s car insurance and clarifies the question of fault.
  • The injured party then takes their car to a garage they trust.
  • The insurer then sends an expert to determine the amount of the damage together with the garage.

If you are involved in an accident or encounter a damage situation in Spain, there are a few important steps you should follow to resolve things smoothly.

  1. Stay calm
  2. Call the police
  3. Fill out the accident report
  4. Take photos
  5. Inform Iberia Insurance Brokers

For more detailed advice read our post on reporting car accidents in Spain

It is also mandatory to carry a standard accident report (Declaración Amistosa de Accidente, DAA). You will find a translation of the individual items below.
Both parties enter their details and make a written statement on the question of fault. This report is signed by both parties and submitted to the respective insurer.

Please print and keep with your vehicle documents. The items in the questionnaire are numbered consecutively. Download the DAA form here

  1. Date and time of the accident
  2. Location of the accident, street, kilometer marker, etc.
  3. Injuries in the accident (including minor injuries) yes/no
  4. Other property damage besides to vehicle A or B yes/no
  5. Witnesses with addresses and indication of whether they were passengers in vehicle A or B
  6. Insured according to the policy: Name, address
  7. Vehicle: Make, model, license plate number
  8. Insurer: Name, policy number, agency, possibly green insurance card with number, indication of whether comprehensive insurance exists
  9. Driver: Name, address, driver’s license number with class, place and date of issue, validity of the driver’s license
  10. Indicate the point of initial impact to vehicle A by an arrow
  11. Mark the point of impact with an arrow
  12. Estimated damage
  13. See below
  14. Sketch with street names, traffic signs, position at the moment of the collision
  15. Remarks
  16. Signature of both drivers

Checklist for item 12: Each driver should mark the items that apply to their side regarding the accident.

  1. The vehicle was parked
  2. I started from a standstill
  3. I stopped
  4. I was exiting a parking lot, property, or farm road
  5. I was entering a parking lot, property, or farm road
  6. I was entering a roundabout
  7. I was driving in a roundabout
  8. I rear-ended another vehicle that was driving in the same direction and lane
  9. I was driving in the same direction in another lane
  10. I changed lanes
  11. I was overtaking
  12. I turned right
  13. I turned left
  14. I was reversing
  15. I drove into the opposite lane
  16. I came from the right (at an intersection)
  17. I did not observe a priority sign

Indicate the number of boxes checked!

Zurich Car Insurance offers flexible coverage options that allow you to pay only for what you need. Key benefits include four levels of protection, starting with the mandatory liability coverage up to €70 million, roadside assistance, and basic legal and accident coverage. Additional perks like the freedom to choose from over 800 repair shops and optional add-ons, such as extended legal protection or coverage for glass damage, ensure tailored solutions for every driver.
However, optional coverages such as theft, extended accident insurance, or total loss coverage may increase premiums. While Zurich’s flexibility is a strong advantage, the need to pay extra for certain benefits could be a drawback for drivers seeking more comprehensive protection at a base level.

Liberty Car Insurance provides key advantages for expatriates in Spain, including full coverage for drivers and passengers, roadside assistance from kilometer zero, and a no-claims bonus of up to 65%. It also offers vehicle replacement at original value for total loss, fire, or theft within the first two years. Additional benefits include legal support for traffic fines, accident insurance, and the option to choose your repair shop, offering flexibility and peace of mind.
A potential downside is that adding optional coverages, such as vandalism or theft protection, can increase premiums. Additionally, reduced premiums under the “designated driver” category apply only to specific drivers. While it’s especially beneficial for expatriates, others might find more tailored options elsewhere.

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Iberia Insurance Broker reviews your existing insurance policies and provides you with comparative offers from various insurers including Allianz, Liberty, Zurich, DKV, and many more. With our headquarters in Mallorca and specialists throughout Spain, we are always on hand to offer you advice that saves you money.

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Denise Latocha

Denise Latocha

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