Insurance Spain

The bad news is that car insurance in Spain is legally required so there is no getting out of it; however the good news is that there are a number of ways of reducing your car insurance premiums in Spain – without breaking the law!

While the article below looks at 10 different ways to get cheap (or at least cheaper) car insurance in Spain, we must point out that you shouldn’t just choose your car insurance on the basis of price alone. Make sure you consider whether the cheap quote you have found actually gives you the full coverage you require otherwise the policy and premium is a complete waste of money.

We know you are interested in getting cheap car and motor insurance but whatever you do, don’t be tempted to provide false information on your insurance application as when it comes to making a claim – and what is the point of having auto insurance if you can’t make a claim when you need to – the insurance company can invalidate your contract if you have lied or provided false information.

Below we list our favourite 10 tips to save you money on car insurance in Spain.

Why pay the insurance companies any more than you really need to?

A bit of time spent researching and a few phone calls and e-mails to Spanish insurance brokers or directly to Spanish insurance companies can save you literally hundreds of Euros in just one year.

Tip 1 – Increase Your Excess
The best way to save money and cut your car insurance premium in Spain is to accept a higher excess (known in Spain as franquicia). The insurance company will always have a compulsory excess but you can add what is known as a voluntary excess in order to to reduce your premium (because you have taken on and accepted more of the risk of the policy).

Only do this once you have analysed your driving skills. If you believe the chances or odds of you having an accident in Spain is high then of course do not make your excess any higher. Also consider any named drivers on your policy and their driving skills!

For example if the excess is €250 then in an accident you would lose €250 of any claim you made. If you increase your excess (flexifranquicia) to €500 then of course you stand to lose that but then if you don’t have an accident in that year your insurance premiums will be much less. So in this example you can expect to save about €60 every year on your car insurance in Spain.

Tip 2 – Buy a Cheap Car With Small Engine Size
Another good tip to save you money on your car insurance in Spain is to buy a cheap car which is not highly powered. In our experience of living in Spain and doing a lot of driving in all areas of Spain, we can advise that roads are often poor quality and full of holes.

Spanish drivers are often quite dangerous drivers – a massive generalization we know, but true!

Spanish drivers when parking will often be able to squeeze into the tightest parking spaces with a few nudges on the front or rear of your parked car!

What we are basically saying is that having a nice (expensive) car in Spain is all very well but the odds of having to claim on your insurance is higher than other countries we have lived in such as the United Kingdom. Buying a cheap runaround town car is a sensible option. Buy a make and model common in Spain so servicing and replacement parts are cheap and you will also find your car insurance cover in Spain is similarly low and cheap. Avoid cars with modifications and extras that would make them more of a target for car thieves.

Tip 3 – Take Third-Party Only
Get cheaper car insurance in Spain by opting for third-party car insurance in Spain. This money saving tip to reduce your car insurance in Spain comes with a common-sense warning – if your car has a high value then fully comprehensive car insurance in Spain is a must. But if you can live with the possible cost of replacing your current car – maybe it is almost due for a change or it no longer has much value – then go for third party car insurance in Spain. You will save a substantial sum on your annual premiums. If any of these commonly used car insurance terms need explaining you should read our guide to Car Insurance Spain.

Tip 4 – Increase Your Security
If you can increase the security of your vehicle then you should be able to get cheaper car insurance in Spain. Insurers appreciate that you have made additional efforts to reduce the likelihood of your car being stolen which means less claims, which is good for them. If you can park in a more secure area such as a garage or driveway as opposed to on-the-road-parking this should reduce or lower your car insurance premiums.

Fit an alarm or immobilizer to your car but first find out with your insurance broker or company that whatever model of security system you fit to your car is approved and will actually result in lower premiums otherwise you may be spending money for nothing.

Tip 5 – Accept Limited Mileage
This is a bit of an insider secret in the car insurance business but if you don’t tend to clock up much mileage then you can sometimes get a reduction in your premiums by getting an agreed mileage restriction inserted into your policy.

Tip 6 – Shop Around and Compare The Market
Shop around for cheaper car insurance in Spain and reduce your premiums. With Internet insurance sites such as ours you can easily find many different providers of cheap car insurance in Spain. Many Internet-only car insurance companies will have the cheapest car insurance premiums because they have smaller overheads compared to the big companies with large offices and staffs. Use a price-comparison search engine website that compares many deals on the market and instantly shows you the cheapest car insurance deals on offer. This will save you both time and money. Also try Spanish insurance brokers.

Another related tip is to tell a company what you have already been quoted and ask if they can beat it. Often they will. This is because the market for car insurance in Spain is extremely competitive and they want your business as they are banking on you being less proactive when it comes to renewing and so getting a new customer can be very lucrative indeed.

Tip 7 – Drive Safely and Carefully
Driving carefully and safely in Spain will in the end result in lower premiums and cheaper car insurance. Any convictions or points you get on your driving license for things such as dangerous driving, drink-driving, speeding, breaking the road laws etc all increase your insurance premiums as you are then seen as higher risk.

Insurance companies love low risk drivers who have a clean driving license and exemplary driving record because they make little or no claims and therefore the insurance companies get to keep all of the premiums you have paid. That may not sound fair but car insurance is compulsory so like it or not you may as well pay as little as you possibly have to.

Also the insurance company will reward you with cheaper car insurance when the time comes to renew your car insurance in Spain as they give you discounts the more years you have on your no-claims bonus.

Insurance companies prefer older drivers as they statistically do have fewer accidents, so if you are aged over 50 then make sure you find a quote that takes this into account. There are also specialist insurance companies that only offer policies to older drivers and these companies are often very competitive on price.

Tip 8 – Get Your Policies With One Insurer
Try get your insurance policies in Spain under one roof. Assuming you will also need other types of insurance in Spain then it makes sense to take out policies with the same insurer. For instance you may have more than one car or you may also need house and home insurance for your property. Your insurer should be keen to get all of your possible business so they should offer further discounts to keep your custom.

Tip 9 – Pay Annually
Pay your car insurance yearly in one single payment. Paying annually instead of opting to pay by monthly installments makes sense because it works out less. When you pay monthly premiums an amount of interest is typically added to cover the extra administration and the fact the money is not yet in the bank. These rates of interest charged are often quite high and often more than a banks loan rates.

Tip 10 – Named Drivers
Reduce your named drivers or other drivers on your car insurance policy.
If you are just going to be the only driver – and in most cases this is likely, then tell your broker or your insurance company because this could and should result in cheaper car insurance as most policies in Spain allow other people over 25 to also drive your car (with third-party liability usually).

Do also be aware of the opposite case where it is good to ‘name’ a driver. For example if you have children who are learning to drive, by naming them they start to build their own no-claims discount/bonus up. Premiums may well be higher initially but in the long run it saves them by building up a clean driving record.

This page on Car Insurance Spain is one of many helpful and useful articles on car insurance in Spain – for a full list see our section on Car Insurance Spain