There are an estimated 2m drivers without insurance in Spain, where there’s also more insurance fraud than in any other EU country. Note, however, that driving without obligatory insurance ( seguro obligatorio) is a serious offence, for which you can be fined up to €3,000 or even imprisoned. You must carry your insurance documents when driving and can be fined €60 for not having them if you’re stopped by the police.
Car insurance is available from many Spanish insurance companies and a number of foreign insurance companies in Spain, including direct insurance companies (who don’t use agents). Always shop around and obtain a number of quotations. In the summer of 2006, there was intense competition among car insurance companies for customers so it’s worth shopping around to find the best deal.
All Spanish and most insurance companies in Western Europe provide an automatic ‘green’ card ( certificado internacional de seguro de autómovil), which extends your normal insurance cover (e.g. comprehensive) to other European countries. This doesn’t include cars insured in the UK, however, where insurance companies usually provide a green card for limited periods only (e.g. 30 or 45 days) and for a maximum number of days per year, e.g. 90. However, you should shop around, as some companies allow drivers a green card for up to six months a year. Green cards are also expensive. Nevertheless, if you’re British and have comprehensive insurance, it’s wise to have a green card when visiting Spain.
If you drive a British-registered car and spend over six months a year on the continent, you may need to take out a special (i.e. expensive) European insurance policy or obtain insurance with a European company. Another alternative is to insure with a British insurance company in Spain. Note that EU rules require all vehicles to be insured in their country of registration. For example, if you keep a British-registered car in Spain, you can insure it through the Spanish branch of a British-based insurance company, but you cannot insure it with a Spanish insurance company. Similarly, if you have a Spanish-registered car, it must be insured with a Spanish insurance company (or a foreign insurance company with an office in Spain).
The following categories of car insurance are available in Spain:
Third-party: Third-party insurance ( responsabilidad civil obligatoria or seguro obligatorio) is the minimum required by law. You should make sure that you fully understand the cover provided for the driver and passengers and that it meets your needs. You can choose to pay an extra premium for additional cover up to a specified or unlimited amount ( ilimitada), which is highly recommended. Unlimited third-party cover usually costs around €35 extra per year. Note that a driver and his family don’t count as third parties and must be insured separately.
Roadside assistance ( asistencia en viajes), glass breakage ( rotura de lunas) and legal expenses ( defensa penal) in the event of a court case may be included in basic third-party cover or can be added for an additional premium.
Third-party, Fire & Theft: Third-party, fire and theft insurance ( responsabilidad civil obligatoria, incendio y robo), known in some countries as ‘part comprehensive’, includes cover against fire ( incendio), natural hazards (e.g. rocks falling on your car), theft ( robo), broken glass (e.g. windscreen), legal expenses ( defensa penal), and possibly damage or theft of contents (although this is rare). Insurance against the theft of a stereo system is usually available only from the manufacturer (it may be included in the purchase price). You may be able to take out fire cover independently, although it’s usually combined with theft cover.
Comprehensive: Comprehensive (sometimes called ‘fully comprehensive’) insurance, known in Spain as ‘all risks’ ( todo riesgo), covers all the risks listed under third-party, fire and theft (above) plus all other types of damage to your vehicle irrespective of how it’s caused. Note that some insurance companies don’t provide comprehensive cover for vehicles more than two or three years old (although it’s possible to get comprehensive cover on vehicles up to ten years old). Comprehensive insurance may be compulsory for lease and credit purchase contracts. Note that Spanish insurance doesn’t usually pay for a replacement car when your car is being repaired after an accident.
Driver & Passenger Insurance: Driver and passenger insurance ( seguro de ocupantes) is usually optional and can be added to insurance policies. Driver protection allows the driver of a vehicle involved in an accident to claim for bodily injury to himself, including compensation for his incapacity to work or for his beneficiaries should he be killed. There are usually various levels of driver and passenger accident insurance, e.g. from €5,000 to €25,000 for death and permanent disability.
Special Insurance: Special insurance can be purchased for contents and accessories such as an expensive car stereo system.
Insurance premiums in Spain are among the lowest in the EU, although they vary considerably according to numerous factors, including the following:
Short-term policies (for periods of less than a year) are available from some companies, although premiums are high, e.g. 50 per cent of the annual rate for three months and 70 per cent of the annual rate for six months. Value added tax (VAT/ IVA) at 16 per cent is payable on insurance premiums. You can reduce your premium by choosing to pay an excess ( franquicia).
If you’re convicted of drunk or dangerous driving, your premium will be increased considerably. In fact, if you’re convicted of drunk driving, your insurance company will probably refuse to pay on a claim!
Insurance companies must give two months’ notice of an increase in premiums.
A foreign no-claims bonus ( bonificación/sistema bonus-malus) is usually valid, provided you’ve had insurance within the last two years, but you must provide written evidence from your present or previous insurance company, not just an insurance renewal notice. You may need an official Spanish translation . Always insist on having your no-claims bonus recognised, even if you don’t receive the same percentage reduction as you received abroad (shop around).
Most companies offer a 5 per cent discount for each year of no claims up to a maximum discount of 60 per cent, although some offer a maximum of only 50 per cent (or less). Foreign insurance companies may offer a more generous no-claims bonus than Spanish companies.
If you have an accident, you’re usually required to pay a penalty ( multa) or your bonus is reduced, e.g. one accident may lose you two years’ no-claims bonus. You can usually pay an extra premium to protect your no-claims bonus. No-claims bonuses usually also apply to a second family car.
In the event of an accident, claims are decided on the information provided in accident report forms ( declaración de siniestro de automóvil) completed by drivers, reports by insurance company experts and police reports. You must notify your insurance company of a claim within a limited period, e.g. two to five days. Many companies have 24-hour helplines for claims, in Spain and abroad. If you have an accident, the damage must usually be inspected and the repair authorised by your insurance company’s assessor, although sometimes an independent assessor’s report may be permitted. An inspection may be unnecessary for minor repairs. Note that when a vehicle is a write-off, Spanish insurance companies usually pay only a percentage of its ‘book’ value, which is often less than its actual value.
If your car is stolen, you must report it to the local police immediately and submit a copy of the police report with your claim. After reporting your car stolen, 30 days must elapse before an insurance company considers a claim.
There’s little communication or co-operation between insurance companies in Spain and trying to recover uninsured losses is a nightmare.
Spanish insurance companies are forbidden by law to cancel third-party cover after a claim, except in the case of drunk driving or when a driver is subsequently disqualified from driving. A company can, however, refuse to renew your policy at the end of the current period, although they must give you 15 days’ notice. Note also that, if you have an accident while breaking the law, e.g. drunk driving or illegal parking, comprehensive insurance may be automatically downgraded to third-party, which means that you must pay for your own repairs and medical expenses.
If you wish to cancel your car insurance at the end of the current term, you must notify your insurance company in writing by registered letter and usually give two months’ notice. You may cancel your insurance before the term has expired if the premium is increased, the terms are altered, or your car has been declared a write-off or stolen. If you cancel your policy during the term of the insurance, e.g. you sell your car, and don’t take out another policy, your insurance company isn’t required to give you a refund.
If you’re going to be motoring abroad or you live abroad and are going to be driving in Spain, it’s important to have motor breakdown insurance ( seguro de asistencia en carretera), which may also include holiday and travel insurance, including repatriation for your family and your car in the event of an accident or breakdown.
Motor breakdown insurance covering Spain and other European countries is provided by car insurance companies and Spanish motoring organisations. Insurance companies usually offer an optional accident and breakdown service ( asistencia en viaje), which is adopted by some 75 per cent of Spanish motorists.
The breakdown service normally covers the policy holder, his spouse, single dependent children, and parents and grandparents living under the same roof. The 24-hour telephone number of the breakdown service’s head office is shown on a card, which should be kept in your vehicle.
If you have an accident or break down, you simply call the emergency number and give your location, and a recovery vehicle is sent to your aid. Although accidents are covered anywhere in Spain, in the event of a breakdown you must be a certain distance from your home, e.g. 15 or 25km (9 or 15mi).
The insurance provides for transportation in the event of a breakdown or illness, although transportation to hospital (if necessary) and medical treatment are covered up to a limited amount. An interest-free loan and an emergency message service is normally provided in the case of a robbery. The retrieval of your vehicle is also guaranteed from within Spain or abroad. If you’re unable to find spare parts locally to repair damage, your insurance company will arrange to have them shipped to you (at your expense).
Most foreign breakdown companies provide 24-hour centres where multilingual staff provide help and advice on motoring, medical, legal and travel matters. Some organisations also provide economical annual motoring policies for those who frequently travel abroad, e.g. owners of holiday homes in Spain.
 Blinklist |
 Bloglines |
 Del.icio.us |
 Digg |
 Diigo |
 Facebook |
 Furl |
 Google |
 Ma.gnolia |
 Mr.Wong |
 Netvouz |
 Simply |
 Spurl |
 StumbleUpon |
 Technorati |
 Yahoo |
