Overview: Types of Insurance in Spain
In Spain there are three main types of car insurance, differing in scope:
- Seguro Obligatorio - the legally required minimum cover
- Terceros Ampliado - extended third-party cover with additional benefits
- Todo Riesgo - comprehensive cover
Every driver in Spain must have at least Seguro Obligatorio. Driving without it is illegal and costly (fines up to 600 EUR). Before taking out insurance, you should have already bought your car in Mallorca and exchanged your driving licence.
Tip: Choose the right type for your car
For an old, low-value car, Seguro Obligatorio is sufficient. For a newer or more valuable car, at least partial cover is recommended. For a financed car, comprehensive cover is often a condition of the loan.
Seguro Obligatorio - Compulsory Insurance
What is Seguro Obligatorio?
Seguro Obligatorio is the Spanish equivalent of compulsory third-party liability insurance. It covers damage you cause to other vehicles, people, or property.
What is covered?
- Damage to other people's vehicles
- Personal injury (injuries, death)
- Property damage (destruction of property)
What is NOT covered?
- Damage to your own vehicle (unless you have additional cover)
- Theft
- Vandalism
- Fire or natural disasters
Costs
- Young drivers (under 25): 400-600 EUR/year
- Adult drivers (25-65): 200-350 EUR/year
- Older drivers (over 65): 180-300 EUR/year
- With no-claims bonus transfer: 150-250 EUR/year (with discount)
Who needs Seguro Obligatorio?
Everyone who is allowed to drive a car in Spain must be insured. It is not optional.
Warning: Driving without insurance
Driving without valid insurance is illegal. Fines: 200-600 EUR, plus penalty points (puntos) deducted from your licence. Your car can be impounded.
Terceros Ampliado - Extended Third-Party Cover
What is Terceros Ampliado?
This is an extension of Seguro Obligatorio with additional benefits. It is a form of partial cover ("half-comprehensive").
What is additionally covered?
- Theft of the vehicle
- Break-in and vandalism
- Glass (windscreen, side windows)
- Natural disasters (hail, flooding, storms)
- Fire
- Sometimes breakdown cover as well
What is NOT covered?
- Accident damage to your own vehicle (that is only covered by comprehensive)
- Scratches or minor damage caused by your own fault
- Wear and maintenance
Costs
- Average: 350-500 EUR/year
- With no-claims bonus: 250-380 EUR/year
- With higher excess: 280-420 EUR/year
Who should choose Terceros Ampliado?
- Anyone with a car that is 3-10 years old
- Anyone who does not need comprehensive cover but wants protection against theft and glass damage
- Anyone looking to save money without accepting the bare minimum level of risk
Tip: Reduce your glass excess
With Terceros Ampliado you can often reduce the glass excess (e.g. from 300 EUR to 0 EUR). This costs only around 20-30 EUR extra per year but is worth it in Mallorca, given the windy conditions.
Todo Riesgo - Comprehensive Cover
What is Todo Riesgo?
This is the most extensive insurance in Spain. It covers almost everything that can happen to your car.
What is covered?
- Third-party liability (as with Seguro Obligatorio)
- Own damage caused by your fault
- Accident damage (even if you are at fault)
- Theft and vandalism
- Glass
- Natural disasters
- Breakdown cover (often included)
- Sometimes legal protection as well
What is NOT covered?
- Wear and maintenance (tyres, brake pads, etc.)
- Damage from negligent maintenance (e.g. engine damage after skipping an oil change)
- Damage from improper repairs
Costs
- Average: 500-900 EUR/year
- Young drivers: 800-1,200 EUR/year
- Older drivers/good no-claims bonus: 400-600 EUR/year
- With high excess (600 EUR): 400-700 EUR/year
Who should choose Todo Riesgo?
- Anyone with a new or expensive car
- Anyone who has a loan for the car (often a bank requirement)
- Anyone who wants maximum peace of mind and no financial risk
- Anyone who drives a lot and needs breakdown cover
Transferring Your No-Claims Bonus
Why does the no-claims bonus matter?
Your driving history (no accidents, no fines) is rated with a no-claims class. A good no-claims record means lower insurance costs.
Transferring Your German No-Claims Bonus to Spain
If you were insured in Germany, you can transfer your no-claims bonus:
Steps:
- Request a no-claims certificate (Schadensfreiheitszeugnis, also called Einstufungsbescheinigung) from your German insurer
- Share this document with your Spanish insurer
- The Spanish insurer applies a discount (20-40%)
Important points:
- The certificate must be no more than 5 years old
- You need an unbroken insurance history
- Some insurers require a certified Spanish translation
Example saving:
- Without no-claims bonus: 400 EUR/year
- With German no-claims bonus: 240-280 EUR/year
- Saving: 120-160 EUR/year
Tip: Request your certificate before you move
Ask for your no-claims certificate before you go to Spain. It takes 1-2 weeks to arrive, and you will need it right away when taking out your Spanish policy.
The Best Insurance Providers
Linea Directa
Profile: Online insurer, wide choice, competitive prices
Advantages:
- Very affordable (often a top scorer in comparisons)
- 100% online purchase
- Fast claims handling
- Good customer service
Disadvantages:
- No physical offices
- Customer reviews are mixed
Costs: 250-500 EUR/year
Website: lineadirecta.es
Mapfre
Profile: Large, traditional insurer with national presence
Advantages:
- Over 100 years of experience
- Offices in many cities
- Comprehensive cover options
- Good breakdown service
Disadvantages:
- Sometimes more expensive than online insurers
- Slower claims handling
Costs: 300-650 EUR/year
Website: mapfre.es
Mutua Madrilena
Profile: Mutual insurer, solid and reliable
Advantages:
- Low prices for long-standing customers
- Good loyalty bonus arrangements
- Personalised insurance packages
Disadvantages:
- Less online-friendly
- Longer application processing
Costs: 280-550 EUR/year
Website: mutua.es
Bankinter
Profile: Online banking plus insurance, affordable and digital
Advantages:
- Very competitive pricing
- 100% online
- Integration with banking accounts
- Fast processing
Disadvantages:
- Relatively new
- Fewer customer reviews
Costs: 240-480 EUR/year
Website: bankinter.es
AXA
Profile: International insurer with a presence in Spain
Advantages:
- Good international service
- Broad product range
- Reliable
Disadvantages:
- More expensive than newer entrants
- Bureaucratic
Costs: 320-700 EUR/year
Website: axa.es
Costs and Price Comparison
Example Prices 2026
| Driver profile | Seguro Obligatorio | Terceros Ampliado | Todo Riesgo |
|---|---|---|---|
| Young driver (under 25, no no-claims bonus) | 500-700 EUR | 600-850 EUR | 900-1,300 EUR |
| Adult (25-55, with German no-claims bonus) | 200-280 EUR | 320-420 EUR | 450-650 EUR |
| Older driver (over 65, good no-claims bonus) | 150-220 EUR | 280-380 EUR | 400-550 EUR |
| New car with financing | - | - | 600-900 EUR |
Factors That Affect Your Premium
Increase the premium:
- Younger age
- Little driving experience
- Accident history
- High annual mileage (>20,000 km/year)
- Weaker no-claims bonus
- More expensive car
Reduce the premium:
- Transferring your German no-claims bonus
- Older age
- Long accident-free history
- Low annual mileage
- Garage parking
- Insuring more than one vehicle
Tips for Saving on Car Insurance
Tip 1: Compare Prices
Use online comparison sites:
- Rastreator.com - Spanish comparison portal
- Acierto.com - Insurance portal
- DecidorBroker.com - Specialist broker
Save approx. 50-150 EUR/year by comparing.
Tip 2: Transfer Your No-Claims Bonus
As described above: 20-40% discount with your no-claims certificate.
Tip 3: Choose a Higher Excess
- Instead of 300 EUR: a 600 EUR excess reduces your premium by approx. 10-15%
- Only do this if you can financially absorb that cost
Tip 4: Review Add-Ons
You probably do not need:
- Legal protection (costs extra, not always worthwhile)
- Breakdown cover (if you rarely drive)
Focus on what actually matters for your situation.
Tip 5: Bundle with Other Policies
Many insurers give discounts if you take out car plus home contents insurance with them.
Tip 6: Loyalty Discounts
Staying is cheaper than switching. Many insurers give discounts to long-standing customers.
Tip 7: Reduce the Number of Listed Drivers
If only you drive the car, make that clear in the policy. More drivers means a higher premium.
Tip: Renegotiate annually
Before your policy renews, call your insurer and negotiate a premium reduction. They will often offer a discount to keep you.
Practical Notes
Online Insurance vs. Broker
Online insurance (e.g. Linea Directa)
- Cheaper (approx. 10-20% less)
- Faster to take out
- No personal advice
- Better for straightforward cases
Insurance broker
- Personal advice
- Tailored solutions
- More expensive (commission)
- Helpful for complex situations
Always Carry Your Current Policy
Print out your insurance certificate or save it on your phone. You will need your policy number and insurer details for:
- Police checks
- Accident reporting
- Garage visits
Reporting a Claim
If you have an accident or damage:
- Call your insurer immediately (hotline on your policy)
- Take photos of the damage
- Get the contact details and insurance number of the other driver
- Do not pay more than your own excess
Summary
For newcomers: Seguro Obligatorio (compulsory) or Terceros Ampliado (recommended)
For new/financed cars: Todo Riesgo (usually required)
Always important: Transfer your German no-claims bonus for a 20-40% discount
To save money: Compare online, choose a higher excess, use loyalty discounts
Also make sure your vehicle always has a valid ITV inspection, as an expired ITV can jeopardise your insurance cover.
The right insurance gives you peace of mind and saves you money. Comparing is the most important tool you have.