How much does car insurance cost in Spain?

What affects car insurance cost in Spain?

Several key factors determine how much you'll pay for car insurance in Spain. Understanding these can help you get a more accurate idea of your likely premium and identify ways to reduce costs. If you're a non-resident, check our specific guide on non-resident car insurance for additional considerations.

1. Your car's value and age

Newer, more expensive cars cost more to insure because they're worth more to replace. A 2020 BMW will cost significantly more than a 2010 Seat Ibiza. However, very old cars (15+ years) may also see higher premiums because replacement parts can be harder to find.

2. Where you live

Location makes a big difference. Urban areas like Madrid, Barcelona, and Valencia have higher premiums due to increased theft risk and accident rates. Rural areas and smaller coastal towns typically have lower rates. Parking in a secure garage rather than on the street can also reduce your premium.

3. Your age and driving experience

Drivers under 25 and over 70 generally pay more. The sweet spot for lowest premiums is typically 30-60 years old with at least 5 years of driving experience. If you're a new driver, expect to pay 40-60% more than an experienced driver.

4. Your no-claims bonus

A no-claims bonus (or discount) from the UK or another country can significantly reduce your premium. Five years claim-free can reduce costs by 30-50%. Make sure to get a certificate from your previous insurer before moving to Spain.

5. Type of cover you choose

Third-party only (terceros) is the cheapest but only covers damage to others. Comprehensive (todo riesgo) costs more but covers your car too. Many expats choose a mid-tier option that includes windscreen cover and fire/theft protection, which offers good value.

Typical car insurance costs in Spain

Here's what most expats actually pay, based on real quotes from 2024-2025. These are annual premiums:

• Small city car (e.g., Fiat 500, Toyota Aygo): €250-€450/year for third-party, €400-€650/year for comprehensive
• Mid-size family car (e.g., VW Golf, Ford Focus): €350-€600/year for third-party, €550-€850/year for comprehensive
• Larger or premium car (e.g., BMW 3 Series, Audi A4):€500-€900/year for third-party, €800-€1,400/year for comprehensive
• Non-resident with UK plates: Add 20-40% to the above figures, depending on the insurer and your circumstances

These are rough guides only. Your actual premium depends on all the factors mentioned above, plus your specific car model, your claims history, and the insurer you choose.

Ways to reduce your car insurance cost

Even if you can't change your age or car, there are several practical ways to lower your premium:

Provide proof of your UK no-claims bonus

Get a certificate from your UK insurer showing your years of claim-free driving. This is one of the single biggest ways to cut costs. Some insurers may require it to be translated into Spanish by an official translator.

Increase your voluntary excess

Agreeing to pay a higher excess (deducible) in the event of a claim can reduce your premium by 10-20%. Just make sure you can afford the excess if you do need to claim.

Park securely

If you have access to a locked garage or secure parking, tell your insurer. This can reduce theft risk and lower your premium, especially in urban areas.

Pay annually instead of monthly

Paying your premium in one lump sum rather than monthly installments usually saves 5-10% because insurers charge interest on monthly payments.

Compare multiple insurers

Prices vary widely between insurers. The same cover for the same car can differ by €200-€400/year. Using a broker who works with multiple insurers can help you find the best deal without spending hours comparing quotes yourself.

Common mistakes that increase costs

Avoid these common errors that can push up your premium or lead to rejected claims:

• Not declaring modifications: Even minor changes like alloy wheels or a tow bar must be declared. Failing to do so can void your policy.
• Underestimating annual mileage: Be realistic about how much you'll drive. Insurers may reject claims if you significantly exceed your declared mileage.
• Assuming your UK policy covers you long-term: Most UK policies only cover you abroad for 90 days. After that, you need Spain-specific cover.
• Not updating your address: If you move from a rural area to a city, your insurer needs to know. Your premium may increase, but not telling them can void your policy.

Next steps

Now you have a realistic idea of what car insurance costs in Spain and what affects your premium. The best way to find out your actual cost is to get quotes from multiple insurers, providing accurate information about your car, your driving history, and your no-claims bonus.

If you're not sure which level of cover you need or want help comparing insurers, speaking to a broker who specializes in expat insurance can save you time and often money too.