What sets your Spanish car insurance price

Terms used

• Bonus-malus — Bonus-malus is the no-claims scale insurers use: claim-free years earn discounts, and at-fault claims move you back and may add a surcharge.
• Certificado de siniestralidad — The certificado de siniestralidad is the insurer's certificate of your claims history and bonus level, which it must give you on request.
• Terceros — Terceros is basic third-party cover: it pays for damage you cause to others, not for your own car.
• Todo riesgo — Todo riesgo is fully comprehensive cover, which also pays for damage to your own car.
• Franquicia — The franquicia is the excess: the part of a claim you pay yourself before the insurer pays.
• NIE — The NIE is the foreigner's identification number used for most official and financial dealings in Spain.

Key rules

• New driver status: With no Spanish history, you start at the base bonus-malus level with no discount, whatever your real experience.
• At-fault claims: Generally only claims where you are at fault move you back on the bonus-malus scale.
• Your record: Your insurer must give you your certificado de siniestralidad on request, and you can use it to switch insurers.
• Compare: Each insurer prices newcomers differently, so compare several quotes using identical details.

Why your quotes are high

Spanish insurers treat you as a new driver, even if you have driven for 20 years. They price on your claims-free history and your driving experience, and you arrive with neither on their system.

Several things work against you:

• You start at the base level of the "bonus-malus" scale, with no discount.
• A foreign licence does not show your years of experience unless you can prove them.
• Insurers cannot see claims data from other countries.
• You have no Spanish risk record, and often a recent NIE and address.
• Many insurers give foreign certificates only partial credit, or none. Some will decline you.

The result is that newcomers usually pay noticeably more than established drivers. Terceros (third-party cover) typically costs several hundred euros a year. Todo riesgo (fully comprehensive) typically runs to the high hundreds or over a thousand. Prices vary widely by age, car, region and insurer, so get several quotes.

How bonus-malus works

Bonus-malus is a no-claims scale. With no history you start at a neutral level. Each claim-free year usually moves you up one step and gives a bigger discount. At the top, the discount typically reaches around half off the base premium or more.

An at-fault claim moves you back several steps and may add a surcharge. Generally only claims where you are at fault count. Each insurer sets its own scale, so the exact steps differ.

Your insurer records your level in the certificado de siniestralidad. It must give you this on request, and a new insurer can use it when you switch. The documents list below shows what to ask for.

What else sets the price

Beyond your history, the price depends on:

• Your age and how many years you have held a licence.
• Your postcode or province, because theft, accident and repair costs differ.
• The car's make, model, value, power and age.
• How you use it: private or work, and kilometres per year.
• Where you park it: garage or street.
• The number and age of drivers on the policy.
• The cover level, and whether it has an excess (franquicia).
• How often you pay, and optional extras such as windscreen, assistance or a replacement car.

How to lower the premium

1. Prove your experience. Bring your foreign licence and, if you can, a letter from your previous insurer. Ask each insurer whether it credits them.
2. Compare several quotes. Insurers weigh newcomers very differently. The comparison of buying channels below shows where to look.
3. Choose the cover level carefully. Terceros is cheapest. Todo riesgo with an excess (franquicia) costs less than one without. Check the cover matches your needs, not just the price.
4. Pick the car with price in mind. A cheaper, lower-powered, older car costs less to insure.
5. Park off the street if you can, and only declare the kilometres you really drive.
6. Add only the extras you need.
7. Stay claim-free and keep your certificate. Each year builds your discount, and you can take it with you when you switch.

Quotes depend on your details, so give every insurer the same information. Otherwise you cannot compare them fairly.

Direct insurers, brokers, comparison sites and bank policies compared

Which channel to use

If you want the lowest price and are comfortable with Spanish, buy direct from an insurer. If you want advice, English-language help or support with claims, use a broker. Use comparison sites to get a first idea of prices, not to make the final choice.

What to check whichever channel you pick

• Introductory prices. A low first-year price can rise at renewal. Ask what the price will be next year.
• Extras. Say no to add-ons you don't need. Each one raises the premium.
• Automatic renewal. Many policies renew by themselves. Find out how and when you can cancel.
• The small print. Read the excess (what you pay on each claim), the exclusions and the cancellation terms before you agree.

Paying without a Spanish bank account

Most insurers want a Spanish IBAN so they can take the premium by direct debit, either yearly or in instalments. If you don't have a Spanish account yet, many insurers let you pay the full year once by credit or debit card, including a foreign card. Some also accept a foreign SEPA IBAN. Ask before you sign which payment methods the insurer accepts.

Getting service in English

Several larger insurers and brokers offer some English-language service. It varies by office and by product. Expat-focused brokers are common in coastal areas such as the Costa del Sol, the Costa Blanca and the Balearic Islands. Help can range from English quotes and phone support to an English summary of the policy. The contract itself is usually legally in Spanish. Ask each provider exactly what it offers in English before you commit.

Documents you need

• Certificate of claims history (certificado de siniestralidad) from your current Spanish insurer. It shows your bonus level, the insurer must give it on request, and you can use it to switch insurers.

• Proof of your years of driving experience, such as your foreign licence or a certificate from a previous insurer. Without it, insurers may treat you as a new driver with no bonus, and some do not accept foreign certificates or give only partial credit.

What to watch out for

• Treated as a new driver: With no Spanish history, insurers treat you as a new driver with no bonus, and some decline you or give your foreign record little credit. Your quote can be noticeably higher than for established drivers. Get quotes from several insurers and bring proof of your driving years and any claims record from abroad.

• Quotes vary widely by your details: Postcode, car, where it is parked, annual kilometres, cover level and payment frequency all change the price. A quote built on wrong details can change or be refused later. Give the same accurate details to every insurer. Compare cover tiers and the excess (franquicia) on todo riesgo, not just the headline price.

• Cheapest cover may not suit you: Terceros costs the least, but it only covers damage you cause to others. Extras such as windscreen, assistance or a replacement car add to the price. Pick the cover tier and extras that match your car's value and how you use it.

Frequently asked questions

Does a claim where I was not at fault raise my bonus-malus level?

No, only claims where you are at fault typically count against your bonus-malus level. At-fault claims move you back several steps and may add a surcharge. Each insurer sets its own scale, so ask yours how it applies.

How much should a newcomer expect to pay for terceros and todo riesgo?

Terceros (basic third-party cover) typically costs several hundred euros a year for a newcomer. Todo riesgo (fully comprehensive) typically runs to the high hundreds or over a thousand. Age, car, region and insurer change this a lot, so compare quotes from several insurers.

Can I take my claims record with me if I switch insurer?

Yes, your insurer must give you its annual certificate of claims history (certificado de siniestralidad) on request, and you can use it to switch insurers. It shows your bonus level.