Paying your premium by direct debit, instalments and missed payments

Key rules

• Suspension: Cover is suspended one month after an unpaid due date and resumes 24 hours after you pay.
• Termination: If the insurer does not claim the premium within six months of the due date, the contract ends and cannot be revived.
• Foreign bank account: Ask whether your insurer accepts a non-Spanish IBAN for direct debit before you sign.

How you pay

Most insurers collect your premium by SEPA direct debit (domiciliación bancaria) from your bank account. Many also take a credit or debit card. Some accept bank transfer, mostly for annual payments. You can usually choose monthly, quarterly, half-yearly or annual payments.

If your bank account is outside Spain, ask the insurer before you sign whether it takes your IBAN for direct debit. Some insurers insist on a Spanish IBAN and offer card or transfer instead. Others accept any SEPA IBAN.

Your first premium

Cover does not begin until the first premium is paid. If it is unpaid when you make a claim, the insurer can refuse to pay. It can also end the contract or demand payment through the courts. Make sure the first payment goes through before you rely on the policy.

If a later payment fails

Your cover is suspended one month after the due date if the premium is still unpaid. It resumes 24 hours after you pay.

The insurer has six months from the due date to claim the payment. If it does not, the contract is considered terminated. A terminated policy cannot be revived. You would have to take out a new contract, usually with new waiting periods (carencias) and a new health declaration. If the contract is not terminated, the insurer can still claim the unpaid amount.

How to avoid a lapse

• Keep enough money in the account a few days before each due date.
• Tell the insurer at once if you change bank or card.
• If a debit is returned, pay the overdue premium straight away, using the method the insurer gives you.
• Check your policy for fees on returned debits. Some insurers charge a small flat fee, others do not, and your bank may charge its own.

Waiting periods after a suspension

Insurers differ on whether waiting periods restart after a short suspension. Check your policy wording, or ask the insurer in writing before you need care.

The timeline, documents and warnings below cover the steps in order. The quick answers cover IVA, annual payment and provincial pricing.

Timeline and deadlines

What happens after a missed renewal payment

• Your renewal premium falls due and the payment does not go through: on the due date

• Your contract is considered terminated if the insurer has not claimed payment; it cannot be revived and you must take out a new one: six months after the due date

Documents you need

Documents to keep at hand

• Your policy wording (the contract conditions your insurer issued). It says how waiting periods (carencias) are treated if your cover is suspended.

• A new health declaration. You need one only if your policy was terminated and you have to take out a new contract; the insurer provides the form.

What to watch out for

Payment risks

• Your first premium must be paid before cover starts: Cover does not begin until the first premium is paid. If it is unpaid when you make a claim, the insurer can refuse to pay. It can also cancel the contract or take you to court for the money. Make sure the first payment goes through on its due date, and ask the insurer to confirm in writing that cover has started.

• A foreign bank account may be refused for direct debit: Some Spanish insurers insist on a Spanish IBAN for direct debit and offer card payment or bank transfer to people with foreign accounts. Others accept any IBAN from a SEPA country (the euro payments area). Ask the insurer before you apply. If it refuses your IBAN, ask for card payment or transfer, or open a Spanish account.

Check with the insurer before you apply whether it accepts your bank's IBAN for direct debit.

Quick answers on premiums and payment

Do I pay IVA on my health insurance premium?

No, health insurance premiums are exempt from IVA, Spain's sales tax. Premiums normally carry a separate insurance premium tax, but health insurance is generally exempt from that too. Check your policy type with the insurer if the receipt shows any tax.

Do I pay less if I pay my premium once a year?

Sometimes, but it depends on the insurer. Some give a discount for annual or half-yearly payment, and others add a small surcharge for monthly or quarterly instalments. Many charge the same monthly amount whatever the frequency, so ask for the price at each frequency before you choose.

Does the province I live in change the price of my premium?

Yes, the same plan can cost roughly 5-20% more or less depending on your province. Madrid and Barcelona are often the most expensive, and some provinces are 5-15% cheaper. Age matters much more, and some insurers use a few regional price zones instead of provinces.