Differences between Motor Insurance in Spain and the UK

When it comes to car insurance, it is important to understand that each country has its own system and requirements. Today, we want to focus our attention on the differences between car insurance in Spain and the UK. Are they as different as they seem? Let's find out.

Brexit and motor insurance in Spain

Brexit has meant the end of the free movement of people between the United Kingdom and the European Union, which also affects drivers who want to travel with their vehicles in both territories. From 1 January 2022, driving licences issued by the United Kingdom will no longer be valid in Spain and vice versa, unless they meet certain requirements or an exchange, renewal or replacement is requested.

Until 31 December 2021, British car insurance was valid for driving in Spain, as were driving licences, due to the Brexit transitional period. 

As of 1 January 2022, English car insurance is no longer valid in Spain, unless certain requirements are met or additional insurance is taken out.

In order to prove the validity of the compulsory insurance, the proof of payment of the premium for the current insurance period must be carried, which must contain the identification of the insurance company, the registration number, insurance plate or distinctive sign of the vehicle, the period of cover and the indication of the compulsory insurance cover.

In addition to the compulsory insurance, it is possible to take out additional voluntary insurance that includes other coverage such as bodily injury to the driver, damage or theft of the vehicle itself or its contents, vandalism, health care, theft, windows, legal assistance, etc.

You can also apply for an International Insurance Certificate (CIS), formerly known as a Green Card, which is proof of the existence of motor insurance outside the European Economic Area and which insures Spanish victims of accidents caused by foreign vehicles.

Where do the differences between Motor Insurance in Spain and the UK begin?

Although there are similarities between motor insurance in Spain and the UK, there are significant differences that drivers need to understand to ensure adequate cover.

If you are interested in finding out more about the advantages of car insurance in terms of price and coverage if you take it out once you are in Spain, there is a very complete guide on this blog.

Differences Motor Insurance Spain and UK

Compulsory minimum coverage: Spain vs. the UK

In both countries, the law requires all motor vehicles to have at least the minimum Liability cover in force at all times. This is mandatory whether the vehicle is being driven on the road or not. In the UK, this law has been in place since June 2011, while in Spain, the rule existed previously.

In Spain, motor insurance is compulsory and is known as civil liability insurance. This insurance covers damage caused to third parties, but not to yourself or your vehicle. In addition, there are other insurance options, such as comprehensive insurance, which provides more complete coverage.

In the UK, it is also compulsory to have motor insurance. Here, insurance is classified into three types: third party insurance, third party, fire and theft insurance, and comprehensive insurance. The type of insurance you choose will determine the degree of cover.

The Differences between Motor Insurance in Spain and the UK

Documentation

In October 2008, Spain implemented a law removing the requirement to carry original insurance documents on a vehicle registered in the country. Details of motor insurance policies are now recorded in the National Database, FIVA.

Circumstances and location

When we are on holiday in Spain, we tend to be more relaxed, including when we are driving. There are times of the year, coinciding with the holidays, when traffic density increases on the Costa del Sol and therefore the risk of accidents increases.

This means that, in addition to property damage to your vehicle, there may be injuries to the driver or occupants of your vehicle. There may also be damage to the property of others or bodily injury to others for which you would be liable if the accident is determined to be your fault.

Agreement of Insurers in Spain

One of the main differences between Spain and Great Britain is the agreement that exists in Spain between insurers. This agreement can facilitate the processing of accident claims, allowing them to be settled in as little as 15 days.

Coverage for British-registered vehicles in Spain

UK-registered vehicles based in Spain are also eligible for cover, although they do not benefit from the Convention. Despite this, the policies offer all the other benefits of the policy package, including the Annual Green Card.

Registration of UK-registered vehicle policies in the UK database

Details of all policies for UK-registered vehicles are recorded on the UK Motor Insurance Bureau's database, ensuring proper regulatory compliance.

Why take out your insurance with Meridional?

At Meridional we understand the needs and expectations of foreign residents or owners here in Spain.  

We know what you expect as a minimum from your insurance: that you will be attended to in your language both during the contracting process and after the sale; and of course that the insurance documentation will also be in your language. 

At Meridional we will also ensure that the necessary documents reach the insurer and, of course, accompany you in the process of your claim for damages where appropriate.

With our brokerage Coseba, we bring together the best companies in the market and more than 37 years of experience as insurance professionals.

Our job is to offer you the best car insurance policy that is available to UK citizens here in Spain. 

Your safety is priceless, but we make it easier. Discover how affordable your driving protection can be.

Get your free quote now!

More differences 

Coverage requirements

Spain

In Spain, civil liability insurance is the minimum required. It covers damage you may cause to third parties, but not to you or your car.

United Kingdom

In the UK, third party insurance is the minimum required. This protects against damage you may cause to others and their property.

Price differences between car insurance in Spain and the UK

Spain

In general, car insurance in Spain tends to be more affordable than in the UK. However, costs can vary depending on several factors such as age, driving experience, and type of car.

United Kingdom

In the UK, motor insurance tends to be more expensive. Although costs can fluctuate based on similar factors as in Spain, the average price is generally higher.

Complaints policy

Spain

In Spain, after an accident, the insurance company must be informed as soon as possible. In general, a period of seven days is allowed to do so.

United Kingdom

In the UK, the procedure is similar. However, the timeframe for reporting may vary from insurer to insurer.

Similarities

Despite these differences, there are also similarities in car insurance in both countries. In both places, it is compulsory to have at least liability insurance and additional coverage can be chosen according to personal needs.

Conclusions

In conclusion, although there are some differences in the car insurance systems in Spain and the UK, both have the same objective: to protect drivers and third parties in case of accidents. At the end of the day, the most important thing is to choose the insurance that best suits your needs and budget.

Frequently asked questions on the differences between motor insurance in Spain and the UK.

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