Which vehicles must have compulsory insurance?

In Spain, any motor vehicle that is driven on public roads and requires a vehicle registration certificate must have, at a minimum, Compulsory Third-Party Liability Insurance.

Who is responsible for taking out compulsory motor third-party liability insurance?

Compulsory Third-Party Liability Insurance is the minimum level of cover that every vehicle must have in order to be legally driven. However, insurers may offer a range of additional cover options, providing varying levels of protection depending on the driver's needs and the premium they are willing to pay. Taking out this basic motor insurance ensures that, in the event of an accident, any injured third party will be covered and entitled to compensation for any loss or damage suffered.

Royal Legislative Decree 8/2004 of 29 October states that “the driver of a motor vehicle shall be liable, by virtue of the risk created by driving that vehicle, for any damage caused to persons or property arising from its use on the road.”

As a result, all cars must be insured not only to be driven but also to be parked on a public road. The legislation states that “every owner of a motor vehicle whose usual place of registration is in Spain must take out and keep in force an insurance policy for each vehicle they own, providing cover up to the limits established under compulsory insurance.”

Failure to maintain compulsory insurance may result in fines ranging from 600€ to 3.000€, the impoundment of the vehicle and, in the event of an accident, personal liability for any compensation payable to third parties.