Motor Insurance is Mandatory for Drivers in Spain
Spanish law requires that all motor vehicles in Spain must have third party insurance in place, designed to compensate third parties injured or who suffer loss in a road traffic accident. The current limit is set at €70m for personal damages and €15m for material damage.
Most expatriates extend the obligatory third party cover by adding comprehensive insurance, which covers the vehicle for damage to itself, along with emergency breakdown cover. Motor insurance rates tend to be competitive in Spain, and most Insurers will apply any no-claims discount to which the client is entitled in their home country.
According to estimates, around two million cars are circulating on Spanish roads without any insurance. The Guardia Civil are proactively using technology to identify those vehicles, and owners can expect to receive a fine of € 601 - € 3,005.