Insurance in Spain: The Main Policy Types Every Expat Should Know
Settling in Spain means dealing with new paperwork: NIE, padrón, bank accounts – and insurance. The good news is that once you understand the main types of cover, it becomes much easier to see what you actually need and what is optional.
Key Takeaways
This article gives an overview of the key insurance lines for expats, how they're usually used, and where to start if you want someone to compare Spanish insurers for you.
- Most expats need at least car, home, health and travel insurance, plus possibly life or business liability
- Spanish insurers talk about third-party, extended third-party and comprehensive in motor, and buildings vs contents in home
- If you run a business or work as autónomo, public liability and professional cover are often essential
- A licensed broker can compare several insurers for you in English
- You can browse all main policy types from one place in the ExpatInsurances insurance hub
Core Personal Insurance for Expats
Car Insurance
If you own a car in Spain, third-party liability is the legal minimum. From there, you can add fire, theft, glass and full own-damage cover. Many expats choose mid-tier or extended third-party cover to balance cost and protection.
Key questions include:
- • Foreign licence acceptance
- • No-claims bonus transfer
- • Breakdown assistance
Home Insurance
Home insurance in Spain is usually split into:
Buildings (Continente)
The structure, walls, roof and permanent fixtures
Contents (Contenido)
Furniture, electronics, clothes and personal items
If you own, your bank may require buildings cover. If you rent, you may only need contents plus liability in case you accidentally damage the landlord's property.
Health Insurance
Private health insurance is common among expats. It can:
- Meet visa requirements when public access is not yet available
- Give faster access to specialists and private hospitals
- Provide English-friendly clinics and customer service
Policies vary from basic with copays to premium plans with no copays and wider networks.
Travel Insurance
Even with local health cover, travel insurance is important for:
- Trips back to your home country
- Holidays in other EU countries or worldwide
- Cover for cancellation, baggage and repatriation
For frequent travellers, annual multi-trip policies can be more efficient than buying single-trip cover each time.
Protection for Family and Income
Life Insurance
Life insurance in Spain is often linked to:
Mortgages
Paying off the loan if one partner dies
Family Protection
Helping dependants cover living costs
You'll usually choose a sum insured that covers debts plus a number of years of household expenses. Term and whole-of-life options exist, often with level or decreasing cover.
Funeral Insurance and Repatriation
Funeral insurance can:
- Cover funeral costs in Spain
- Include repatriation of remains to your home country
- Arrange practical services, which is helpful when family is abroad
For many expats, this gives peace of mind that relatives won't be left to organise everything in a foreign system.
Cover for Businesses and Autónomos
Public Liability and Professional Cover
If you're self-employed or run a company, you may need:
Public Liability Insurance
If clients visit your premises or you work on client sites
Professional Indemnity
If your advice or services could cause financial loss
Spanish contracts and landlords often ask for proof of liability insurance, sometimes with specific minimum limits.
Business Insurance Packages
Business policies can also include:
- Contents and equipment cover
- Business interruption
- Glass, signage and money
The combination you need depends on whether you run an office, shop, café, online consultancy or something else.
Why Use a Broker Instead of Guessing Alone?
Working with a Licensed Broker
Spanish insurance products are often marketed through banks, comparison sites, agents and brokers. A licensed broker who specialises in expats can:
- Explain the differences in cover, not just price
- Help with English documentation and claims
- Combine several policies with one point of contact
For many expats, this is the fastest route to a sensible, consistent insurance setup.
Expert reviewed
Written and reviewed by licensed insurance agents Maya Kallio and Marco Elsinger, who have helped over 15,000 expats in Spain since 2012.
Maya Kallio
Licensed Insurance Agent
Since 2012
Marco Elsinger
Licensed Insurance Agent
10+ years
Languages: English, Finnish, Spanish, German
Frequently asked questions
Still have questions? Check these answers or get in touch.
What are the absolute minimum insurance policies I should have in Spain?
For most expats, the essentials are car insurance if you drive, home or contents insurance for your property, some form of health cover, and usually travel insurance for trips. If you have dependants or a mortgage, life insurance is worth serious consideration too. Business owners and autónomos should add public liability and possibly professional cover. The exact mix depends on your assets, debts and risk tolerance, but starting with these pillars keeps you protected against the most common problems.
Is it better to buy insurance from my Spanish bank?
Banks often sell policies from one or two insurers and may bundle them with loans or accounts. That can be convenient, but it doesn't guarantee the best price or cover. Bank products can be harder to compare, and small print is often only in Spanish. Working with an independent broker lets you see options from several insurers and check the details in English before you commit. In many cases, the cost is similar or even lower than bank-branded products once you compare like-for-like cover.
Can I wait until I'm fully settled before arranging insurance?
You can delay some things, but others shouldn't wait. Car insurance must be in place before you drive, and home insurance is usually required from the moment you complete a purchase or receive the keys. Health and travel insurance are also important from day one, especially if you're not yet fully integrated into the public system. Other policies, like life insurance or business cover, can follow once your situation is clearer, but it's wise to plan them early instead of leaving gaps.
Are Spanish insurance policies very different from UK or northern European ones?
The basic idea is similar, but terminology and structure can differ. Spanish motor policies use local terms for cover levels; home insurance often has different treatment for community buildings and private contents; health policies have specific rules about copays and waiting periods. The biggest difference for expats is usually language and process rather than the underlying concept. Having someone explain those differences in English makes it much easier to avoid misunderstandings and unpleasant surprises at claim time.
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