Best car insurance for expats in Spain

So, you are driving in a new country. The roads may look familiar - tarmac, traffic lights, roundabouts - but as every expat knows, what feels familiar and what is familiar are two very different things.

Spain, with its stunning coastlines, breath-taking mountain routes, and busy city centres, is a beautiful country to drive in. But as any foreigner behind the wheel here will tell you: you want to be properly insured before you get on the road.

So, let’s get down to brass tacks - what is the best car insurance for expats in Spain.

Driving abroad: The joys and jitters

When I first moved to Spain, I thought getting behind the wheel would be the easiest part of settling in. I´ve been driving since I was in my early twenties, after all. How different could it be?

Well, let’s just say it didn’t take long for me to discover. Indicator use is more of a suggestion than a rule in some parts, and parking in many places is like a competitive sport. And you’ll wonder how the parking sensors can beep that loudly and you still end up with a scratch

It might also be that you will be driving in rural areas or mountain roads, especially on those wonderful road trips Spain has to offer. You may also be frequently sharing your car with visiting family or friends

On top of all that, navigating Spanish bureaucracy around vehicle registration and insurance can make even the most laid-back person see red.

Which is exactly why having the right car insurance is so important.

Do you really need insurance in Spain?

Yes, you do. If you're a resident in Spain and own a vehicle - whether it's Spanish-plated or imported - you’re legally required to have at least third-party liability insurance. That’s the bare minimum. Drive without it and you’re looking at fines, vehicle confiscation, and potentially worse if something happens.

But as many people quickly learn, third-party cover alone often isn’t enough. Especially if you're still getting used to the local driving style

That’s where the best car insurance for expats steps in - offering more than just legal cover.

What to look for in a policy (that most expats forget)

When shopping around for car insurance as an expat in Spain, it’s easy to get lost in a sea of translated PDFs and long-winded broker speak. Here are some things to look out for:

1. Language support - When you’re in a roadside emergency, you don’t want to be fumbling with Spanish legal terms. Some providers, like Caser, offer English-speaking customer service and clear policy documents.

1. Flexible driver cover - Not every policy covers other drivers using your car - which is awkward when your brother-in-law visits and wants to borrow the car for “a quick trip to the beach.”
2. Glass, theft and fire - Comprehensive coverage often doesn’t cost much more, and can save you hundreds in surprise bills for cracked windscreens or a break-in.
3. Assistance services - Some policies offer 24/7 roadside help, towing, or even a replacement vehicle - all of which can be a lifesaver when you’re stranded on the side of an Andalusian backroad with a flat tyre and no shade.

Hidden Gems: Caser’s lesser-known policies

Now, I’m not saying there’s only one provider out there - but if you want something tailored to expats living in Spain, some of Caser’s lesser-known car insurance options are worth a closer look.

Let’s explore a few:

Coche x Coche (Car for Car)

1. This is a really clever one. It offers compensation not just for the value of the damaged parts, but based on the value of your whole vehicle. It’s a sort of “no quibbles” approach that’s especially helpful if you drive a newer or higher-value car. For expats unsure about how damage assessments work in Spain - or just tired of the classic "market value" debates - this policy makes things much more straightforward.
   
   

Coche + Vida (Car + Life)

1. This combines traditional car insurance with life insurance, meaning your family is financially protected in the worst-case scenario. It’s not something you like to think about - but if you’ve got dependents or are building a life in Spain long-term, this kind of cover adds meaningful security.
   
   

Coche a Todo Riesgo con Franquicia (Comprehensive with Excess)

1. If you’re a confident driver and want full coverage without paying full premiums, this option gives you comprehensive protection with a deductible - meaning you share some of the costs, but save on the monthly fees. Great for those who drive regularly but are willing to take on a little risk in exchange for better value. More info on all these is available through Caser’s car insurance page for expats, where they break it down in surprisingly plain English.

Are you driving and imported vehicle?

If you’ve brought your car over from the UK, Germany, or beyond - congratulations, and I hope you’ve got a thick skin. Registering a foreign vehicle in Spain is famously complex. Many standard Spanish insurers won’t touch non-Spanish plates. But there are some policies available specifically for foreign-plated cars, particularly while you're waiting for re-registration. If that’s you, be sure to ask about provisional coverage and avoid assuming your old policy from back home still applies.

Expats, young drivers, and visitors: special considerations

Spanish insurance companies don’t always make things easy for expats with no Spanish driving record, drivers under 25 or foreign residents with long gaps in insurance history.

But the best car insurance for expats often includes tailored underwriting that accounts for your previous driving experience abroad - even if you don’t have a spotless Spanish record yet.

It’s worth talking to a broker who understands both the insurance sector and the expat world and being honest about your driving history (again, Caser has dedicated support for this).

Quick tips to stay road-legal and insured in Spain

Take the scenic route - just make sure you’re covered

Spain is one of the best countries in the world to explore by car. From Basque mountain villages to the coastal roads of Cádiz, there’s a freedom that only four wheels can offer.

But whether you’re a long-term expat or just settling into your new life, having the best car insurance for expats isn’t just about ticking a legal box - it’s about making sure your adventure doesn’t turn into a bureaucratic nightmare.

Take the time to find a provider that understands your needs, speaks your language, and offers tailored policies like “coche x coche” or combined cover options. It might not be the most exciting part of moving abroad - but it’s one of the most important.

Then, once that’s sorted, all that’s left to do is roll down the windows… and get a good playlist going.