Car Insurance in Spain: Comparing, Switching and Costs

Car insurance in Spain got noticeably more expensive in 2025, and many residents on Mallorca have been paying the same premium for years without ever comparing it. Yet switching here is easier than in many other countries, once you know the deadlines. This post explains the three price tiers Terceros, Terceros ampliado and Todo Riesgo, the terms franquicia and bonus, how to get the no-claims years from your home country recognized, and the cancellation rules. The basics of Spanish car insurance with an overview of providers are in our guide to car insurance in Spain, here we look at comparing and switching in practice.

Terceros, Terceros ampliado or Todo Riesgo?

Spanish insurers essentially sell three tiers. Terceros is pure third-party liability (seguro a terceros), the legal minimum. It pays for damage you cause to others, but nothing for your own car. Terceros ampliado extends liability with individual add-ons, usually glass breakage (lunas), theft (robo) and fire (incendio). That roughly corresponds to third-party, fire and theft cover.

Todo Riesgo is Spanish fully comprehensive insurance: besides damage to third parties it also covers damage to your own vehicle, regardless of who is at fault. With a franquicia, meaning an excess or deductible, the annual premium drops considerably, but you pay a fixed amount out of pocket for every at-fault claim.

A rule of thumb from everyday life: for a car worth less than about 8,000 euros, Todo Riesgo rarely pays off. For a newer vehicle, comprehensive cover with a franquicia often makes more sense than without, because the gap in premiums is large and you only pay the excess if you claim.

What car insurance costs in Spain

According to the price index of the comparison portal Kelisto, the average price of car insurance in Spain rose by 8 percent in 2025 to 975.60 euros per policy. A Todo Riesgo policy now averages more than 1,400 euros a year. The days when Spanish insurance was automatically cheaper than back home are over, at least if you do not compare.

The ranges depend heavily on age, where you live, claims history and the vehicle. The bonus, bonificación in Spanish, works much like a no-claims discount: every claim-free year lowers the premium, a reported at-fault claim pushes it back up. Unlike in some countries, the system is not standardized, every insurer sets its own scale. That is exactly why comparing at every renewal date is worth it.

Getting your no-claims bonus recognized

You do not have to write off the claim-free years you earned in your home country. Most Spanish insurers accept a certificate from your previous insurer and place you in a cheaper band accordingly. Here is how:

Can I have my no-claims bonus from abroad credited in Spain? Yes. With a no-claims certificate from your previous insurer, most Spanish providers recognize the claim-free years. Depending on the insurer, the discount on the entry premium is often 20 to 40 percent.

Cancelling and switching: these deadlines apply

Spanish car policies renew automatically for another year. If you want to switch, Article 22 of the Spanish insurance contract law (Ley 50/1980 de Contrato de Seguro) requires you to object to the renewal at least one month before expiry, in writing or via the customer portal. Conversely, the insurer has to notify you of a cancellation or premium increase at least two months in advance.

Driving without insurance is not an option: under the motor liability law (Real Decreto Legislativo 8/2004) the fine is between 601 and 3,005 euros, and the vehicle can be immobilized on top. If an uninsured or unidentified vehicle damages your car, by the way, the state-run Consorcio de Compensación de Seguros steps in.

Finca tracks, second cars and other Mallorca particularities

If you drive along an unpaved finca track, pay attention to two add-ons. Glass cover (lunas) quickly pays for itself with gravel and stone chips, and roadside assistance should apply from kilometer 0 (asistencia desde km 0), otherwise you are stranded without a tow on your own property or a few meters in front of it.

For a second vehicle it is important to know: in Spain every registered vehicle must be insured, even if it sits in the garage for months. There is no suspended or laid-up cover as in some countries. If you want to take a car off the road for a longer period, you can apply for a baja temporal at the DGT, and only then does the insurance obligation end. And if you have just brought a car with foreign plates to the island: sort out the insurance question alongside the re-registration, how that works is in our guide to re-registering a car on Mallorca.

Before signing, it is also worth checking these points:

• The size of the franquicia and whether it also applies to glass and theft
• Roadside assistance from kilometer 0 and a replacement car in the event of a claim
• Cover for drivers under 25 or with less than two years on their license
• Free choice of garage or being tied to approved repair shops
• Whether the ITV due date is monitored (some policies pay only limited amounts with an expired ITV)

Conclusion

Premiums in Spain rose by an average of 8 percent in 2025 to around 975 euros, and automatic renewal means loyal customers pay the full amount. If you compare once a year, get your no-claims bonus recognized and keep to the one-month deadline for objecting, you get a good part of that back. While you are at it, check whether your cover still fits the car: a ten-year-old car rarely still needs Todo Riesgo, while a new car on a gravel track very much needs glass and breakdown cover.