All vehicles must have at least third party insurance. Proof of insurance must be carried at all times. There are penalties for drivers of vehicles without valid insurance.
Spanish insurance policies may vary from the standards of other countries, including EU countries. For example, when a car is considered a write-off in Spain, the insurance company will only refund a percentage of the value.
The Spanish insurance system operates on a no-claims bonus (bonification/sistema bonus-malus). In order to benefit, evidence of no prior claims will need to be provided. It can significantly reduce the cost of insurance. A premium may be reduced by electing to pay an excess (franquicia or deducible).
If an accident is caused by an uninsured vehicle, injured party or owner of damaged property is entitled to compensation from the Insurance Compensation Pool (Consorcio de Compensación de Seguros).
If the car is registered in another country, a Green Card must be displayed.
If the car spends over six months of the year in an EU country other than Spain, it is necessary to take out a European insurance policy with the home insurer. EU regulations mean that all vehicles must be insured in the country in which they are registered. Therefore if the car is (for example) UK-registered it cannot be insured with a Spanish company. The vehicle can, however, be insured with a British insurer in Spain, by using the Spanish branch of a UK insurance company.
To register a car in Spain it needs to be deregistered in the country of origin then re-registered with the authorities in Spain.
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AngloINFO Franchising: Be your own boss - where you want to be!
Do you dream of having your own, profitable, easy-to-operate business? AngloINFO might be the solution!
Now in its twelfth year of business, AngloINFO is the world's leading network of expat information websites - with over three million monthly visitors from around the world.
We have an established network of 81 local websites in 37 countries with many more in development.
Our 54 local franchisees are the key to our success and come from a huge range of backgrounds, ages and nationalities. The common factor is a passion for success.