Choosing your car insurance cover level (terceros or todo riesgo)

Terms used

• Franquicia — The franquicia is the amount you pay on each own-damage claim before the insurer pays the rest.
• Terceros básico — Terceros básico is the minimum compulsory car insurance, covering only damage you cause to others.
• Terceros ampliado — Terceros ampliado is third-party cover plus extras such as windscreen, theft, fire and roadside assistance.
• Todo riesgo — Todo riesgo is comprehensive car insurance that also pays for damage to your own car, even if you are at fault.

Key rules

• Terceros básico: It pays only for damage you cause to others, never for your own car.
• Todo riesgo: It is the only level that repairs your own car when the accident is your fault.
• Franquicia: A higher franquicia lowers your premium but raises what you pay per claim.
• Financed car: Lenders and leasing firms typically require todo riesgo.
• Policy wording: Cover under each level differs by insurer, so compare what is actually included.

Which cover level should you pick?

Match the cover to your car's value. A new or financed car suits todo riesgo. An old, low-value car usually suits terceros. Cars in between are a judgement call.

What each level covers

Terceros básico covers only the damage you cause to other people and their property. That is the compulsory minimum. It pays nothing for your own car.

Terceros ampliado adds common extras on top. These are usually windscreen cover, theft, fire, legal defence and roadside assistance. Some policies also cover natural events. A step called terceros ampliado plus, or "con lunas e incendio", varies by insurer, so read what it actually includes.

Todo riesgo adds repairs to your own car, even when the accident was your fault. It also includes the extras above. It comes in two forms: con franquicia and sin franquicia.

Cover details differ between companies. Compare the policy wording, not just the name of the level.

What is a franquicia?

The franquicia is the amount you pay on each own-damage claim before the insurer pays the rest. If your franquicia is €300 and the repair costs €1,000, you pay €300 and the insurer pays €700.

• Typical levels run from €150 to €500. Some policies go to €1,000 or more.
• A higher franquicia lowers your premium.
• A policy sin franquicia costs more, but you pay nothing per claim.
• It does not usually apply to claims for damage you cause to other people.

Choose a franquicia you could pay on the day without trouble. Levels vary by insurer and policy.

Matching cover to your car

These are rules of thumb, not legal limits.

• New or recent car (up to about 5 years old): todo riesgo. A franquicia can cut the cost.
• Car of 5 to 10 years with moderate value: todo riesgo con franquicia or terceros ampliado.
• Older car worth little, roughly under a few thousand euros: terceros básico or ampliado. Repairs may cost more than the car is worth.
• Financed or leased car: lenders and leasing firms typically require todo riesgo. Check your finance contract.

Optional add-ons

You can add extras to most policies. Limits vary widely, so check the amount and number of days.

• Driver accident cover, which pays death or disability benefits to the driver even if at fault.
• A courtesy car during repairs or after theft, often for a limited number of days.
• Legal defence and claims, often with a limit in the low thousands of euros.
• Roadside assistance and towing, travel assistance, windscreen cover and cover for personal belongings.

Only pay for add-ons your policy does not already include. The decision and FAQ below help you compare options.

Choosing between options

Which cover level suits your car: terceros, terceros ampliado or todo riesgo?

• Terceros básico: Your car is old and worth little, roughly under a few thousand euros, so repairs could cost more than the car. It covers only your liability to others (SOA).

• Terceros ampliado: Your car is older or of moderate value and you want extras such as windscreen, theft, fire, legal defence and roadside assistance without paying for own-damage cover.

• Todo riesgo con franquicia: Your car is 5 to 10 years old with moderate value, or newer and you want a lower premium. You pay a fixed amount on each claim for your own car's damage.

• Todo riesgo sin franquicia: Your car is new or recent, up to about 5 years old, or financed, and you want the insurer to pay own-car damage in full, even when you are at fault. It costs more.

Match the cover to your car's age and value: new, recent or financed cars suit todo riesgo, mid-age cars suit todo riesgo con franquicia or terceros ampliado, and low-value old cars suit terceros. If a lender or leasing firm is involved, it will usually require todo riesgo.

Frequently asked questions

Does a franquicia apply to third-party claims?

No, a franquicia does not usually apply to third-party liability claims. It is the amount you pay on each claim for damage to your own car. Check the policy wording to be sure.

What franquicia amount is typical on a todo riesgo policy?

Typical franquicia levels run from about €150 to €500, and some policies go to €1,000 or more. A higher amount lowers your premium. A policy sin franquicia (no excess) costs more.

Which optional add-ons can I add to a car policy?

Common add-ons are driver accident cover, a courtesy car (vehículo de sustitución) and legal defence (defensa jurídica). Others are roadside assistance, windscreen cover, travel assistance and personal belongings cover. Courtesy car days and legal defence amounts are usually limited.

Do lenders require todo riesgo on a financed car?

Yes, lenders and leasing firms typically require todo riesgo if the car is financed or leased. Ask them before you buy a cheaper cover level.