Car Insurance in Spain for Expats (2026 Guide) | Requirements & Costs
Car insurance in Spain for expats works differently from the US, UK, Canada, Latin America and many EU countries. For expats, new residents and foreign drivers, understanding how insurance works is essential to avoid fines, rejected claims or registration problems.
This complete 2026 guide explains:
- Legal requirements for car insurance in Spain
- Insurance types (terceros vs todo riesgo)
- Rules for foreign licences and imported vehicles
- Costs, documents and claims
- How expats choose the right policy
Compare expat-ready car insurance options here:
Table of Contents
- Do Expats Need Car Insurance in Spain?
- Minimum Legal Requirements
- Types of Car Insurance in Spains
- Car Insurance for Expats: What’s Different
- Insurance for Foreign-Plated Cars
- Driving in Spain with a Foreign Licence
- How to Insure a Car as a New Resident
- Car Insurance Costs in Spain (2026)
- Required Documents
- Claims & Roadside Assistance
- Choosing the Right Coverage Level
- Related Guides
- FAQs
- Get Expat Car Insurance Quotes
Do Expats Need Car Insurance in Spain?
Yes. Car insurance is mandatory for all vehicles driven or parked in Spain, regardless of whether you are:
- A resident or non-resident
- Driving a Spanish or foreign-plated car
- Using the vehicle daily or occasionally
Driving without insurance violates Spanish civil liability law and can result in fines between €600 and €3,000, plus vehicle immobilisation.
Car insurance is only one part of the broader protection expats need when living in Spain. Legal requirements, visas, healthcare access and property insurance are often interconnected. For a complete overview of how all insurance types fit together, see our Expat Insurance Guide Spain:
Minimum Legal Requirements
Spain requires Third-Party Liability Insurance (Seguro a Terceros) as the legal minimum.
It covers:
- Damage to other vehicles
- Injury to third parties
- Property damage
It does not cover damage to your own car.
All car insurance policies in Spain are regulated and supervised by the Spanish insurance authority (DGSFP), ensuring consumer protection and legal compliance.
Types of Car Insurance in Spain
Spain has three standard coverage levels:
Third-Party (Terceros)
- Legal minimum
- Covers damage to others only
- Cheapest option
Third-Party with Extras (Terceros Ampliado)
Adds:
- Theft
- Fire
- Glass / windscreen
Fully Comprehensive (Todo Riesgo)
- Covers damage to your own vehicle
- Includes vandalism, weather, collisions
- Available with or without excess (franquicia)
When is comprehensive insurance really worth it?. See the Full Decision Guide:
Car Insurance for Expats: What’s Different?
Expats often face extra complexity due to:
- Foreign driving licences
Some insurers restrict coverage if a licence hasn’t been exchanged.
- No-claims bonus transfer
Spain does not automatically recognise foreign NCB, but some insurers accept official letters.
- Residency status
NIE, address and registration status can affect eligibility.
- Imported vehicles
Temporary coverage may be needed during import and re-registration.
UEI works only with insurers that accept expat profiles.
For expats preparing a move to Spain, car insurance is usually part of a wider relocation checklist that includes visas, healthcare, housing and legal registration.
Insurance for Foreign-Plated Cars
EU-Plated Vehicles
- Short-term insurance possible
- Re-registration required after residency
Non-EU Vehicles (UK, US, Canada, LatAm)
- Coverage is limited
- Often requires temporary policies
- Registration deadlines are strict
Driving in Spain with a Foreign Licence
Rules vary by nationality:
- EU licences → valid indefinitely
- UK licences → exchange agreement exists
- US / Canada / others → exchange or test required
Licence status affects insurer acceptance.
Driving without valid insurance is considered a serious offence under Spanish traffic law, enforced by the Dirección General de Tráfico (DGT).
How to Insure a Car as a New Resident
Insurers typically request:
- Passport or NIE
- Spanish address
- Driving licence
- Vehicle registration
- ITV (if applicable)
If you want expat-ready options (foreign licences, imported vehicles, fast activation), explore Expat Car Insurance Spain.
Car Insurance Costs in Spain (2026)
Coverage Type | Typical Annual Cost |
Third-Party | €180–€350 |
Third-Party + Extras | €260–€500 |
Comprehensive | €450–€1,200 |
Prices depend on:
- Driver age
- Car value
- Location
- Licence type
- Claims history
Choosing the Right Coverage Level
The right policy depends on risk, not just price.
- New, financed or high-value cars → Comprehensive
- Older, low-value cars → Third-party
Detailed decision guide:
Related Guides
Related Insurance Products
FAQs — Car Insurance in Spain
Is car insurance mandatory?
Yes.
Can expats insure cars easily?
Yes, with the right insurer.
Can I use foreign insurance?
Only temporarily.
Get Expat Car Insurance Quotes
Tailored policies for expats, foreign licences and imported vehicles.