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Car Insurance Costs in Spain – 2025 Expat Guide
Car Insurance Costs in Spain – What Expats Should Expect (2025 Guide)
Introduction – Why Car Insurance Costs Differ for Expats
Car insurance in Spain is mandatory, but the cost can feel unpredictable, especially for expats. Premiums depend on your age, driving experience, car type, and even where you register the vehicle. For expats, extra rules around NIE numbers and no-claims transfers can make things a little more complicated.
At 247 Expat Insurance, we cut through the confusion, explaining what expats should realistically expect to pay and how to avoid overpaying at renewal.
👉 Related blog: Steps to Switch Your Spanish Car Insurance and Save Money.
Average Cost of Car Insurance in Spain (2025)
On average, car insurance in Spain costs between €200 and €1,200 per year. The final figure depends on the policy type you choose:
- Third-Party Liability: €200–€400/year
- Extended Third-Party (Glass, Fire & Theft): €300–€600/year
- Comprehensive (Todo Riesgo): €600–€1,200/year
For expats, prices may lean higher if insurers don’t recognise your foreign driving history, but brokers like us can often secure discounts by validating your no-claims bonus.
Factors That Affect Car Insurance Prices
Premiums in Spain aren’t one-size-fits-all. Several factors shape what expats pay:
- Age and driving history – Drivers under 28 face the steepest costs.
- Type of car – Financed, new, or high-value cars cost more to insure.
- Location – Madrid, Barcelona, and Málaga are pricier than rural towns.
- Annual mileage – Retirees who drive less may get lower premiums.
- Extras added – Roadside assistance, European cover, or Coche x Coche add to costs.
👉 Related blog: Optional Extras in Spanish Car Insurance – What’s Worth It and What’s Not.
Costs by Policy Type
Choosing the right policy type is key to balancing protection and affordability.
- Third-Party Liability is the cheapest, meeting legal requirements and suitable for older cars.
- Extended Third-Party adds valuable protection against theft, fire, and glass damage — a smart mid-range choice.
- Comprehensive offers the highest level of protection, required for financed cars and recommended for new or high-value vehicles.
👉 Related blog: Third-Party vs Comprehensive Car Insurance in Spain.
Regional Differences in Spain
Insurance costs vary across Spain, often linked to risk factors.
- Urban areas: Madrid, Barcelona, and Valencia see higher premiums due to traffic and accident rates.
- Tourist hotspots: Coastal areas like the Costa del Sol and Costa Blanca often face higher risks of theft or vandalism.
- Rural regions: Galicia, Castilla-La Mancha, and Extremadura usually offer cheaper premiums thanks to lower traffic levels.
How Expats Can Reduce Car Insurance Costs
The good news is that there are plenty of ways to save.
- Transfer your no-claims bonus from the UK, EU, or US — ask your insurer for proof.
- Compare renewal quotes — Spanish insurers hike prices every year.
- Bundle policies — combining car and home insurance often lowers costs.
- Pay annually to avoid hidden monthly charges.
- Adjust your franquicia (excess) to lower your premium if you rarely claim.
👉 Related blog: The Hidden Costs of Car Insurance in Spain.
Common Mistakes That Increase Costs
Expats often pay more than necessary by making avoidable errors. Letting policies auto-renew without comparing alternatives is the most common. Some over-insure older cars with full Comprehensive, while others under-insure financed vehicles, leaving themselves financially exposed. Adding under-28 drivers without checking requirements also pushes costs up significantly.
👉 Related blog: Car Insurance for Retirees in Spain – Tips to Save and Stay Protected.
FAQs – Car Insurance Costs in Spain
Between €200 and €1,200 per year, depending on the cover, car, and your driving history.
Yes normally Third-Party and Comprehensive are cheaper than other countries.
Sometimes, especially if using a Spanish insurer that doesnt accept foreign no-claims history or add any discount for expats.
Yes, if you provide official proof. Brokers can help negotiate this.
Yes. Retirees often save thanks to reduced mileage.
Higher accident and theft rates drive up premiums in urban areas.
Yes we can accept monthly or quarterly payments, depending on the ammount of the premium, but annual payments are cheaper since monthly and quarterly instalments often include fees.
Conclusion – Get a Personalised Quote Today
Car insurance costs in Spain vary, but expats don’t need to overpay. By transferring your no-claims history, comparing renewal quotes, and choosing the right policy type, you can save money without losing cover.
At 247 Expat Insurance, we do the hard work for you — beating renewals, explaining everything in English, and helping you stay fully protected.
👉 Get Your Car Insurance Quote Today – open 7 days a week.
Contact us for further iformation or for a free car insurance quote below:
General Blog Disclaimer
The information in this article is provided for general guidance and informational purposes only. It does not constitute advice, nor does it form part of any contract. Insurance products in Spain can vary significantly between insurers, with different terms, conditions, exclusions, and eligibility requirements.
Readers should always review the full policy wording and schedule before purchasing any insurance product to ensure it meets their individual needs. For personalised assistance, 247 Expat Insurance acts as an authorised intermediary and arranges cover with regulated insurers in Spain.