Expat Car Insurance in Spain

Car insurance is mandatory in Spain with minimum coverage of third-party liability insurance (Seguro de Responsabilidad Civil) which covers damage or injury caused to third parties (Terceros) if the policy holder is at fault. Higher levels of coverage, such as Comprehensive insurance, covers damage to the policyholder’s vehicle and more.

Spain requires a minimum of third-party liability (Seguro de Responsabilidad Civil) coverage for vehicles.

Generally, no. Unless specifically covered by the terms of your car insurance policy, auto insurance usually does not cover you on international territory.

Yes, a non-resident of Spain can own a car, though there are requirements. Expats (non-residents) must possess a valid driver’s license, register the car in Spain, and obtain Spanish license plates.

Yes, American cars can be driven in Spain if the vehicle is correctly registered. Foreign plates cannot be insured, so vehicles must be registered in Spain and drivers need to hold a third party liability insurance policy. See the next FAQ for registration details.

For expats to register a car in Spain, the requirements are:

• Vehicle registration certificate: Official document providing proof of registration of the vehicle..
• Auto insurance: Non-residents will need to have a valid insurance policy in place.
• Import taxes or VAT: If you purchased your car outside of the EU, you may be required to pay import taxes or VAT.
• Annual road taxes: You will need to pay annual road taxes to keep your car registered.
• Vehicle inspections: You will need to pass vehicle inspections every two years. If your vehicle is older than 10 years, it will be subject to inspection every year.

Additional information:

• Situations vary from person to person. The specific fees and taxes you will be subject to will depend on your individual circumstances.
• It’s best to consult with a tax professional or lawyer in Spain. They can help you assess your specific needs and recommend the best course of action.

Yes, your car insurance for Spain provides coverage in other EU countries! Your vehicle can be driven across the EU and Schengen Area with no time limit on the coverage. In the event of an incident/accident, coverage will be provided in accordance with the terms and limits established in the territory in which the incident/accident takes place.

Expats need an EU license to drive their insured vehicle. U.S. military and DOD civilians will be able to obtain a Spanish driver’s license by virtue of an agreement with the Spanish government.

Please note that we can issue quotes and policies while the driver’s license is being converted. This process is usually faster for U.S. military than non-military due to circumstances beyond our control. The driver will only be covered once they possess an EU driver’s license.

You will electronically receive a copy of your car insurance policy translated into English, along with the official policy documents in Spanish.

Clements’ car insurance policies for Spain are annual (issued in one-year increments), but if you need insurance for less than one year, you may be able to receive a pro rata refund on your annual policy, minus any cancellation charges or one-time fees. Speak with one of our insurance professionals to discuss your best option.