Car insurance

This is insurance designed to covers risks related to a vehicle and its occupants. The policyholder shall pay the insurance premium. In return, if an accident occurs or the vehicle is damaged, the insurer covers the expenses, or pays a sum of money, or offers other type of benefits, depending upon the coverage contracted in the policy.

In Spain the law requires drivers to at least have civil liability insurance that covers use and operation of the insured car.

The most common types of car insurance modalities are:

• Third-party liability insurance: this is the mandatory minimum. It covers third-party liability claims against the driver.
• Comprehensive insurance: protects the entire vehicle in the event of any damage.
• Insurance with deductible: In the event of damage to the car, the policyholder or the insured shall pay for a part of the cost of repair and the insurance company shall pay the rest.

What is auto insurance?