What is car insurance?
It is a contract in which a car owner signs an agreement to pay a certain amount of premium every year against the financial coverage of any kind of loss or damage to his own vehicle or even in cases where he is legally responsible for any kind of loss to the car or property of a third party. The damages that are generally covered for the other person are repairing cost of the vehicle and also any kind of medical treatment in case of injury. But if the car owner is not a permanent resident of Spain i.e. he is an expat then in such cases expat car insurance is a very vital thing that one must possess. The expat policy usually includes coverage in case of accident with other cars, any damage by the third party, damage caused to the windows or upholstery, damage due to any natural calamity etc.
Why do I need vehicle insurance in Spain?
Driving a car in Spain is usually fun, but stressful at times. Whatever the price of the car is, getting it insured is very important. Car insurance in Spain is a legal necessity. Before it is taken out on the road, it has to be insured. It is always important to purchase high quality insurance at a reasonable price. Car insurance covers insurance of vans, cars and even motorcycles. It is also mandatory to carry all the related insurance documents and the payments receipts in the car. But better not carry the original documents; instead carry copies of the same. The most important thing to note is that the policy must be written in English because while getting a policy done one has to understand its terms and conditions properly.
What are the types of car insurance available in Spain?
The car insurance Spain is basically of three types namely;
a) Third party insurance – It is the basic coverage which is also very economical. Most people in Spain who own older vehicles have been seen opting for this insurance policy as the cost involved is low. People have a general tendency of not spending much on old vehicles, they think it is unworthy. It covers the damage that has been caused by the policy holder to the vehicle of any third party and pays for the amount of damage caused on the behalf of the insurer. This is the lowest amount of insurance coverage available for the third party.
b) Third party plus – This particular vehicle insurance in Spain covers the theft and any kind of damage to the vehicle of the third party too. It is also considered to compensate the insurer if the car is declared as a total write off due to any accident.
c) Fully comprehensive – This policy is said to cover almost any kind of damage like theft, fire etc. to the car of the insurer and even to the other person and his car due to any loss caused by the accident. So people having this insurance can be mentally relaxed as it covers the repairing cost of almost any kind of damage to the cars of both parties, the insured as well as the third party. But it is the most costly coverage as the insurance company has to pay a high amount of money if there is any accident. On including an excess clause then the amount of premium can be brought down.
I myself being an expat after going through this article have realized how important it is to have vehicle insurance in Spain, especially for the expats.