Car owners in Spain are required to have valid insurance, not only to comply with the law but also to be protected in case of an accident. Every year, thousands of drivers review their policy terms—some stay with their current company, while others look for better deals. The process of changing insurers may seem complicated, but in reality, it’s much simpler if you prepare in advance and know the necessary steps.
This article details the steps for switching to a new insurance policy, the required documents, and the possible consequences of not having insurance. The material will be useful for those going through this process for the first time or wanting to avoid common mistakes.
What is car insurance and why is it necessary?
Car insurance is a contract between a vehicle owner and an insurance company, where the company assumes the obligation to compensate for damages under certain circumstances. In Spain, the minimum legal requirement is third-party liability insurance, which covers damage caused to third parties. Driving without it is prohibited by law.
There are different types of coverage: basic (a terceros), extended (terceros ampliado), and full coverage (a todo riesgo). The broader the service, the higher the cost, but the protection is also more comprehensive. In addition to accidents, insurance can cover theft, fire, glass damage, and even roadside assistance.
How to change your insurance company: when and what to do
Before switching insurers, it’s important to check the expiration date of your current policy. Usually, the policy is renewed automatically unless you notify the company of cancellation at least 30 days before it expires. Missing this deadline can lead to double payments or being denied a refund.
The next step is to compare market offers. There are many insurance companies operating in Spain, and their terms can vary significantly. Pay close attention not only to the price, but also to the list of included services, deductibles, and payout limits. Once you choose a new insurer, you must formally notify your previous company of the termination to avoid misunderstandings.
What documents are needed to arrange a new policy
To sign a contract with a new insurance company, you’ll need a standard set of documents. Typically, you must provide proof of identity (DNI, NIE, or passport), vehicle registration, technical certificate (ficha técnica or tarjeta ITV), and your bank details for payment processing. Some insurers may also request information about your insurance history and previous incidents on the road.
Before signing, carefully review all the terms of the contract: coverage period, list of risks, and claims settlement procedures. Be sure to confirm the start date of your new policy so you’re not left unprotected, even for one day. Lacking insurance even briefly can lead to hefty fines and legal issues.
What happens if you have no insurance in an accident
If a driver is involved in an accident without valid insurance, they bear full financial and legal responsibility for all resulting damages. This includes both damage to other people’s property and injury to victims. Compensation amounts can reach tens of thousands of euros, and in some cases, even more.
In addition, there are administrative penalties for driving without insurance: hefty fines, vehicle impoundment, and even temporary driving bans. In particularly serious cases, criminal liability is possible. Skipping or ignoring insurance is extremely risky.
Tips for choosing and using modern safety devices
Starting in 2026, Spain will require the use of V16 emergency beacons with GPS and a SIM card to signal incidents on the road. These devices automatically transmit the vehicle’s location to emergency services. Drivers are advised to purchase such a beacon in advance and regularly check that it is working properly.
It’s also important to remember safety protocols in case of an accident or breakdown: if possible, leave the roadway, turn on your hazard lights, and use approved devices to mark danger. Following these steps will help minimize additional risks and speed up the arrival of assistance.
In case you didn’t know, the Dirección General de Tráfico (DGT) is Spain’s main government agency responsible for road safety, traffic regulation, and the implementation of new standards. The DGT develops and introduces innovative measures to reduce accidents and keeps drivers informed about important legislative changes. In recent years, the department has been actively promoting digitalization and the use of modern technologies to improve road safety across the country.
