Comparing insurance quotes and what premiums (primas) really cost

Terms used

• Franquicia — The franquicia is the amount you pay yourself on each claim before the insurer pays the rest.
• Continente — The continente is the building itself: its structure, walls and fixed parts.
• Contenido — The contenido is what is inside the home: furniture, belongings and appliances.
• IPS — The IPS is a state tax on insurance premiums, generally 8%, included in the price you pay.
• Regla proporcional — The regla proporcional lets an insurer reduce a payout in proportion if your sum insured is lower than the real value.
• Decesos — Decesos is funeral insurance that covers funeral costs and arrangements, often sold as a family policy.
• Recibo — The recibo is the premium receipt, which lists the price, taxes and surcharges.
• Carencias — Carencias are waiting periods before a cover starts to apply.

Key rules

• Like-for-like: Only compare quotes with the same sum insured, franquicia and exclusions.
• IPS: The general rate is 8% and is already inside the premium, with life and health insurance exempt.
• Consorcio surcharge: Look for the separate Consorcio line on the recibo so you know the total price.
• Tenant or owner: A tenant's home policy is usually much cheaper than an owner's, which also covers the building.
• Life and decesos: Prices depend on your age and details, so only your own quotes give a real figure.

Compare the cover first, then the price

A cheaper quote is often a quote that covers less. Before you look at the premium, make every quote match on these points:

• Sum insured. For a home policy, set the value of the building (continente) and of your belongings (contenido). Check how each is valued: full value, first risk, or at new value.
• Franquicia. This is the amount you pay on each claim before the insurer pays. A low premium with a high franquicia can cost you more in the end.
• Exclusions and limits. Check what each cover leaves out and any sub-limits, for example for jewellery or valuables.
• Covered risks. List them: fire, water damage, theft, glass and extraordinary risks.
• Liability and legal defence. Compare the liability limit and whether legal defence is included.
• Waiting periods (carencias). Some covers only start after a set time.
• Assistance. Check for services such as emergency repairs.
• Contract length and renewal. Ask how the price changes at renewal.

Also ask about the regla proporcional. If your sum insured is too low, the insurer can pay out only part of any claim. This is called infraseguro. A cheap quote with a low sum insured can leave you underpaid.

What the premium includes

Ask each insurer whether the price you are quoted is the final price. Two additions matter.

IPS. The Impuesto sobre las Primas de Seguros (IPS) is a tax on the premium. The general rate is 8% and it is included in the premium. Life insurance and health insurance are exempt. Compulsory motor insurance is not. The Basque Country and Navarre have their own tax regimes. The rate is set by law, so confirm the current figure when you buy.

Consorcio surcharge. On home, motor, life and accident policies, insurers add a compulsory surcharge for the Consorcio de Compensación de Seguros. It covers extraordinary risks such as floods, earthquakes, terrorism and civil unrest. It shows on the receipt (recibo) as a separate line, under a heading such as "recargos a favor del Consorcio". The rate depends on the type of risk and the cover. Check the current tariff with the Consorcio. If a quote does not show this line, ask whether it is included.

Budgeting for each type of cover

Home. A tenant's policy is usually much cheaper than an owner's. As a tenant you insure mainly your contents and liability. An owner also insures the building, so the price rises with the rebuild value, the size of the home and the area. Region, claims history, cover limits and franquicia also move the price. Get the current average ranges from a consumer organisation or a price comparator, then collect your own quotes.

Life. The price of term life cover depends mainly on your age, whether you smoke, your health and the capital insured. It rises as you get older. No single range applies, so ask for quotes with your own details.

Funeral (decesos). These policies are priced by your age when you join and the type of cover. The premium may stay level or rise with age. They are often sold as family policies. Ask which of the two the quote is, because a level premium and a rising one cost very different amounts over the years.

Put the quotes side by side

Ask each insurer for a quote on exactly the same terms, then compare the total yearly price with IPS and the Consorcio surcharge included. The decision below helps you choose when one quote is cheaper but weaker. Before you sign, the quick answers below show how to check that an insurer or broker is authorised.

Choosing between options

Which quote is really the better deal?

Is the cheaper quote really cheaper, or just covering less?

• Ask for new quotes on the same terms: The quotes differ on the sum insured for the building (continente) or contents (contenido), the franquicia (the part of each claim you pay yourself), or the exclusions and limits.

• Choose the lowest total price: Sum insured, franquicia, covered risks, exclusions, liability limit and contract length match across the quotes, and each price includes taxes (including the insurance premium tax, IPS) and the Consorcio surcharge.

• Pay more for the stronger quote: One quote has a lower franquicia, a higher liability limit, fewer exclusions, higher limits for jewellery or valuables, or no waiting period (carencia), and the extra cost fits your budget.

Compare prices only after the sum insured, franquicia and exclusions match. A sum insured that is too low can lead the insurer to cut your payout in proportion (regla proporcional), so a low price may cost you at claim time. Budget with the full price, including taxes and the Consorcio surcharge, and ask how it changes at renewal.

Quick answers about buying insurance in Spain

Is an English-language policy legally binding in Spain?

Usually not: the Spanish contract is normally the legally binding version, and an English copy is a courtesy translation unless the policy says otherwise. Some insurers and English-speaking brokers offer English wording and service, especially in expat areas. Look for the policy's language clause before you sign.

Can I pay Spanish insurance premiums from a foreign bank account?

Often yes, because many Spanish insurers accept direct debit from a eurozone (SEPA) IBAN, but some insist on a Spanish account. Card payment, bank transfer or paying through a broker are the usual alternatives. Cards are common for a first payment or an annual premium.

How can I check that an insurer or broker is authorised in Spain?

Search the public registers kept by the insurance regulator at the Ministry of Economy, by name or registration code. They list insurers, agents, brokers and branches, and show the type of intermediary. Ask any agent or broker for their registration number, which must appear in their documents.