Recently, Theo, a client of Spanish Solutions, asked a question that many expats and residents in Spain are also asking this year:
“Why has my car insurance gone up so much?”
We contacted our insurance partners to get a clear explanation — and here’s what we found out.
Rising Costs Across the Board
Unfortunately, insurance premiums in Spain have increased across the country, and this upward trend is expected to continue for the foreseeable future.
One of the main reasons for this is that part of every insurance payment contributes directly to Spain’s public economy. This contribution, once a smaller percentage of the overall premium, has recently increased — meaning insurers are passing a higher cost on to customers.
Additionally, new taxes have been introduced this year that have affected many sectors, including the insurance industry.
The Role of the Consorcio
Part of the taxes included in your premium go to a government-backed body called the Consorcio de Compensación de Seguros. This organization steps in to cover losses caused by extreme weather and natural disasters — such as flooding, heavy storms, or other extraordinary events — even when the insurance company itself is not directly liable.
While this is an important safeguard for all residents in Spain, it does mean that a portion of everyone’s premium goes toward maintaining this national protection fund.
What Can Policyholders Do?
At Spanish Solutions, we work closely with our insurers to make sure clients are getting the best possible value. In many cases, we can request an additional discount from the insurer or help adjust a policy to bring costs down.
For example, policyholders can often reduce their premium by:
- Increasing the excess (the amount you pay in case of a claim)
- Reducing optional cover
- Limiting the policy to one named driver
Our team reviews every case individually to ensure you maintain the right level of cover while keeping premiums as low as possible.
What Does a Typical Comprehensive Policy Include?
Most fully comprehensive car insurance policies in Spain come with valuable benefits such as:
- Courtesy car in case of an accident or breakdown
- Windscreen cover and 24-hour roadside assistance
- Enhanced vehicle value if your car is written off (based on its age)
- Freedom to choose your repair shop or use one from the insurer’s network
- Open driver policy (often covering any driver over 25 with sufficient experience)
- International driving cover for a limited number of days abroad
- Legal assistance and claims management services
These benefits are designed to give peace of mind on the road — even though they do come at a cost.
Our Advice
While we can’t control tax or market trends, we can make sure every client gets the most competitive quote. We will provide an appropriate level of cover for their situation.
Thank you for continuing to trust Spanish Solutions!
Our team is always here to make sure you understand what’s included, why costs change, and how you can get the best value for your money. Thank you for renewing your insurance through Spanish Solutions.
