Car insurance is a legal requirement in both Spain and the UK, but the systems differ significantly in structure, cost, and coverage.
In the UK, car insurance is typically tied to the driver. Policies often allow flexibility for multiple named drivers and include options like third-party, third-party fire and theft, or comprehensive cover. UK drivers also benefit from a well-established no-claims bonus (NCB) system, which rewards claim-free years with reduced premiums. Additionally, UK insurance tends to be more expensive, particularly for younger drivers.
In contrast, Spain operates a vehicle-based insurance model. This means the policy is usually attached to the car, not the driver. Any licensed driver with permission can legally drive the insured vehicle, which simplifies matters for households sharing a car. However, insurers may place restrictions or adjust premiums based on the age or driving history of those using the car. Note, this does not mean a car can be hired out for money or reward. This would invalidate the policy.
Spanish car insurance is generally cheaper than in the UK, partly due to a lower incidence of claims and a less litigious environment. While Spanish policies also offer third-party and comprehensive options, coverage details can vary more widely, and roadside assistance is commonly included as standard.
A notable difference is the UK’s Motor Insurers’ Bureau, which compensates victims of uninsured drivers — a feature Spain lacks, placing more emphasis on personal legal cover.
Ultimately, while both countries aim to protect road users, drivers relocating or driving abroad should understand these differences to ensure adequate and legal coverage.
At InsureSpain we can offer several options of car insurance. Contact us for more details, help and advice.
