Introduction – Why Renewal Rules Matter in Spain

For expats in Spain, renewing your car insurance isn’t just a formality – it’s a legal and financial obligation. Every vehicle registered in Spain must be continuously insured, whether it’s driven daily, parked in storage, or sitting unused on private land.

Unlike some countries where renewals are optional or manual, in Spain your policy is automatically renewed every year by law unless you cancel it correctly and on time.

This process, called tácita reconducción, is defined by Spanish insurance law (Ley 50/1980 del Contrato de Seguro, Article 22) and catches many expats by surprise. Failing to follow the rules can leave you paying for two policies at once – or worse, facing fines for having an uninsured vehicle.

This guide explains exactly how renewals work, how to cancel or switch safely, and how 247 Expat Insurance helps you avoid renewal traps and get renewal-beating quotes.

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Every Vehicle Must Remain Insured – Even If It’s Off the Road

Spain’s Dirección General de Tráfico (DGT) confirms that all registered vehicles must be insured, whether or not they’re used on public roads.

Only vehicles officially declared “baja temporal” (temporary deregistration) or “baja definitiva” (permanent deregistration) are exempt.

That means:

• Parking your car in a garage does not remove the insurance requirement.
• Selling a car? It must remain insured until ownership is formally transferred.
• Cancelling insurance without deregistration can lead to penalties and fines if the vehicle remains on record.

So, maintaining valid insurance – even between renewals – is a legal must for every resident and expat.

How Car Insurance Renewals Work in Spain

When you take out a Spanish car insurance policy, it automatically runs for 12 months and renews again for another year unless you cancel correctly.

Here’s the typical timeline:

1. Around 45 days before renewal – the insurer sends your renewal notice (aviso de renovación) showing the next year’s premium.
2. Within that notice period – you have at least 30 days to decide if you’ll continue or cancel.
3. On the renewal date – if no written cancellation is received, the policy automatically renews for another full year.
4. Payment – premiums are collected via direct debit or card on or just before renewal.

If you’ve made no written cancellation, your policy renews tacitly under Article 22 of the Insurance Contract Law.

Automatic Renewal (Tacita Reconducción) Explained

In Spain, nearly all car insurance contracts include an automatic renewal clause. It exists to ensure uninterrupted coverage – because every car must stay insured by law.

Under Article 22 of the Ley del Contrato de Seguro:

• Policies renew automatically for successive 12-month periods.
• The insurer must notify you of renewal terms (premium, conditions) at least one month before renewal.
• The policyholder must give written notice of cancellation at least 30 days before renewal if they do not wish to continue.

Failing to follow this process means your policy renews automatically, and the insurer is entitled to charge – and if necessary, legally recover – the new premium.

How to Cancel or Switch Car Insurance in Spain

Cancelling in Spain is simple but formal. The key is to do it in writing and on time.

1. Wait until you receive the renewal notice

Once you get your renewal terms, you can confirm if you want to stay or leave. That letter or email starts the 30-day notice window.

2. Send cancellation in writing

Write a short cancellation letter or email including:

• Your full name and NIE/TIE
• Policy number
• Vehicle registration
• The requested end date (usually renewal date)
• Signature (for written letters)

Send it to the insurer’s official address or email (check your policy schedule). Keep proof of delivery – registered post or email receipt.

⚠ Important: Cancelling the direct debit is not enough.

Spanish insurers will renew your policy, send reminders, and can pursue payment through debt collection or court action. The law recognises written notice only.

3. Give at least 30 days’ notice

Notice must reach the insurer minimum 30 days before renewal. Later notice may be rejected, and the policy will renew for another year.

4. Confirm acceptance

Always request written confirmation that your cancellation was received and accepted. Keep it with your records.

5. Set up your new policy before the old one expires

To stay legal, ensure there’s no gap in cover. 247 Expat Insurance helps you arrange a new policy that starts the moment your old one ends.

👉 Get a quote now to compare renewal vs switching options:

Common Renewal Mistakes Expats Make

Renewal Costs – Why Premiums Change Each Year

Even if you haven’t claimed, your renewal price can go up or down depending on:

• Vehicle age – older cars may shift into higher risk brackets.
• Driver profile – age, years of licence, and residence status.
• Claims history – even minor claims can affect your next premium.
• Inflation and repair costs – average Spanish premiums rose slightly in 2024–2025 due to repair-cost inflation.
• Postcode risk – theft and weather claims differ regionally.

If your renewal jumps, don’t assume it’s final. 247 Expat Insurance compares policies across the market to help you beat renewal pricing while keeping the same or better coverage.

No-Claims Bonus (NCB) and Renewals

When renewing or switching, you can carry your no-claims discount if you can provide an official certificate from your previous insurer (UK, EU, or elsewhere).

Requirements:

• Must show your name, vehicle, policy period, and years claim-free.
• Should be on official company letterhead.
• English certificates are generally accepted, though some insurers may request a Spanish translation.

We’ll help you include it in your renewal quote so you don’t lose the discounts you’ve earned.

👉 Learn more: Documents Expats Need for Car Insurance in Spain

Renewal Tips for Expats – How to Save Money & Avoid Headaches

1. Set a reminder for your renewal 45 days before expiry.
2. Read the renewal notice – it contains the new premium and legal cancellation window.
3. Check your coverage level – if your car’s older now, you might downgrade from Comprehensive to Third-Party Plus.
4. Ask for renewal-beating quotes – 247 Expat Insurance checks multiple English-speaking insurers for you.
5. Don’t rely on bank cancellation – it doesn’t end the policy.
6. Keep proof – always retain a cancellation receipt.
7. Update personal details – NIE, address, licence, and contact info help avoid admin errors.
8. Renew early if travelling – renewals can be handled entirely online or by phone.

How to Switch Providers Without Losing Coverage

Switching in Spain is straightforward with planning:

1. Check your renewal notice and send cancellation to your current insurer (≥ 30 days).
2. Get new quotes for the same start date.
3. Confirm the new insurer’s start time so coverage overlaps correctly.
4. Provide documents (NIE, driving licence, vehicle papers, proof of address, NCB certificate).
5. Keep both confirmations for your records.

At 247 Expat Insurance, we handle this process in English and make sure your old policy closes correctly, preventing double payments.

Frequently Asked Questions – Car Insurance Renewal in Spain

1) Is car insurance renewal automatic in Spain?

Yes. All policies automatically renew for another year unless cancelled in writing at least 30 days before renewal. This automatic extension is legally recognised as tácita reconducción under the Insurance Contract Law.

2) Can I cancel by stopping my direct debit?

No. Cancelling the payment does not cancel the contract. The insurer can still renew the policy and legally chase the unpaid premium. Always send written notice.

3) How much notice must I give to cancel?

By law, 30 days before renewal. The insurer must give you renewal terms one month in advance, and you have until 30 days before the renewal date to cancel.

4) I didn’t know my policy renewed – can I cancel now?

Once renewed, the contract is legally valid for another year. Some insurers may agree to early termination, but they are not required to. Contact us quickly to discuss your options.

5) My car is not being used. Can I suspend insurance?

No. A registered car must always have valid insurance unless it is officially deregistered (baja temporal or definitiva) with the DGT.

6) Can I switch insurers without losing my NCB?

Yes. Provide an official certificate from your previous insurer, and your no-claims discount will transfer.

7) Can the insurer cancel my policy?

Yes, but they must give you two months’ written notice before renewal (also defined in Article 22). Non-payment after renewal can also result in cancellation and debt recovery.

8) How do I confirm my policy has been cancelled correctly?

Request written confirmation or a “certificate of cancellation.” Keep it for your records.

9) What happens if I drive without valid insurance?

Driving uninsured in Spain carries heavy fines and vehicle impoundment. DGT cross-checks vehicles electronically for active insurance records.

10) Who can help me manage renewals in English?

247 Expat Insurance handles renewals, cancellations, and comparisons in plain English – ensuring you stay compliant and save money.

Legal Framework & Official References

• Ley 50/1980, de 8 de octubre, del Contrato de Seguro, Article 22 – governs renewals and cancellation notice. BOE.es
• DGT (Tráfico) – confirms every registered vehicle must maintain valid insurance. DGT.es

Conclusion – Stay Legal, Stay Covered, Stay Informed

Spain’s renewal system is strict but simple:

• Every car must stay insured, even when unused.
• Policies renew automatically unless cancelled in writing.
• Cancellation requires 30 days’ notice – not just stopping your bank payment.

Follow these rules, and you’ll stay legal, avoid unwanted charges, and enjoy stress-free renewals year after year.

At 247 Expat Insurance, we manage renewals and cancellations for you, explain every step in English, and help you secure renewal-beating quotes tailored for expats.

👉 Get Your Car Insurance Quote Today – Open 7 days a week.