Whatever your insurance requirements in Spain OLG can save you time, money
and stress.
Insurance can be difficult to understand and finding the right policy that makes sense in English can be a nightmare, you need to speak with an English expert. We can arrange a full advice and placement service. Our advice and placement service covers the cover you need from all the leading insurers here in Spain and throughout Europe. We will demonstrate discuss the full range of options available and help you to identify those that are most suitable to your specific circumstances.
Some Frequently Asked Questions on Car Insurance and Home Insurance.
What are the differences between Spain and your country of origin?
It is important that someone highlights for you any key differences or
unique aspects that might apply to your policies here in Spain. Your
professional adviser should have a detailed knowledge of the products that
are both available and suitable alongside a background of long-term
experience in the market. If you're a property owner in Spain needing
professional insurance cover for your holiday home at a competitive price,
we can provide a competitive quote.
What are the laws regarding motor vehicle insurance in Spain?
Spanish Law is similar to the road traffic laws in other countries
throughout member states of the European Union all vehicles using the
roads must be insured for third party liability risks. EU Regulations
stipulate that vehicles must be insured by an Insurer licensed to operate in
their country of registration. WE can arrange insurance for both UK and
Spanish registered vehicles owned by expatriates in Spain, as the insurer is
Lloyd's of London. Lloyd's is allowed under the EU "Freedom of Services"
Directive to cross border service from the UK and Gibraltar and thus can
insure UK registered cars driven in Spain. Equally Lloyd's is "established"
in Spain through the Spanish Regulatory Authority the DGS and therefore
can also insure Spanish registered vehicles owned by expatriates living in
Spain.
Which Law is applicable to the contract?
EU Law now stipulates that you and the Insurer are free to choose the law
applicable to the insurance contract but in absence of agreement to the
contrary, the law of the country in which you reside at the date of the
contract (or in the case of a business, the law of the country in which the
registered office or principal place of business) will apply. If you own a
Spanish registered vehicle the Law of Spain applies.
If I live in Spain can I drive a UK registered vehicle legally?
Yes providing you have not applied for, and received, "Residencia", you can
bring your UK registered vehicle with you when you come to Spain but by law
you can only use it for six months in any calendar year in Spain. Ibex can
however continue to insure it for as long as you keep it in Spain. Any
Non-resident who changes to resident status after six months must either
import the car into Spain, which can be expensive and complicated, and
re-register onto Spanish plates, or sell it and buy a Spanish registered
vehicle.
Do I need to produce an MOT Certificate before I can obtain insurance for my
UK registered vehicle?
We do not request sight of an MOT (or its Spanish equivalent ITV) before we
insure you but there is a strict policy requirement that your vehicle is
roadworthy at all times and you should also comply with the law in which
your vehicle is being used. Any breach of this could invalidate your
insurance cover and, failure to produce a certificate of roadworthiness may
render you liable to prosecution and /or a fine by the authorities. As long
as you are non-resident and do not use your vehicle for more than 6 months
in Spain (and return the vehicle to the UK after 6 months) then an MOT is
valid in Spain. It is now becoming common in Spain for UK vehicles to be
tested at the local ITV (MOT equivalent) centre. But remember the ITV
certificate will only be valid in Spain, so if you travel back to the UK and
don't have a valid MOT certificate it could lead to problems with the Police
there. So be sure you comply with the law and keep your vehicle in a
roadworthy condition.
I have heard that most Spanish insurance companies will not provide
Comprehensive cover for vehicles more than three years old. Is this true?
The market is changing, but slowly, and this is still often the case. We can
arrange Comprehensive cover for vehicles a lot older providing that they
have been maintained in good condition.
Is it true that I must carry all my vehicle documentation in the vehicle at
all times? And what happens if the vehicle is stolen?
Yes it is! Whilst driving your car on the road in Spain you MUST have the
following documents with you:
Driving licence
The car's Ficha Tecnica (showing the technical details of the car) or Log
Book if UK registered
All your insurance documents receipt, certificate of insurance (for UK
vehicles) and Green Card
If your vehicle is stolen and the documents have gone with it the situation
can become problematical. So, although slightly inconvenient, we recommend
that whenever you leave your vehicle unattended that you take the documents
with you. However if you don't you will have to arrange to replace them
before your claim can be settled. The procedures involved to get replacement
documents are as:
Attend the Guardia Civil station and make a Denuncia (statement).
Apply for a new Ficha Tecnica at your local ITV centre probably takes
around a week and you need to take the Denuncia with you.
Once you have the Instancia and a new Ficha Tecnica you then apply for
duplicate papers at your Trafico Office.
For UK registered vehicles you will need to write to the DLVA and apply
for a replacement Registration document.
Can I recover my uninsured losses?
An accident may not only affect your vehicle and the no claims discount
under your policy, but it can leave you out of pocket. Costs such as the
payment of your policy excess, hire car charges, additional travelling
expenses, and the inability to work and claim earnings are all known as
Uninsured Losses. In the UK when the accident is not your fault there is a
strong chance that such costs can be recovered if you have opted to add
legal assistance cover to your policy, however, in Spain things are slightly
different and you are only likely to receive reimbursement of your policy
excess. Spanish insurers are unlikely to consider anything else. Recovery is
a slow process even after the acceptance of liability by the other party.
In some cases it can take up to 12 months before you will receive payment.
Unfortunately this is simply the way Spanish companies all operate.
Therefore expatriates in Spain need a high portion of patience and
determination.
My car has been written-off. I paid much more for it than the insurance
company is offering in settlement. Why?
An insurance company will pay you the value of the car at the time of the
accident. The value of all cars reduces the moment they leave the showroom,
and year on year thereafter. After a serious accident a qualified motor
engineer, known as a "Perito" in Spain, will inspect the vehicle and he will
determine the current market value for the insurance company based on
standard market trade guides.
Am I able to transfer my No Claim Discount from my previous Insurer?
If you have a UK or no claims bonus from your own country this can be used
in Spain with written proof from your previous insurer.
How does my No Claim Discount work?
You earn a no-claims discount for each year of cover during which you do not
claim. The discount increases each year up to a maximum of four years. A
single claim, if you are at fault' (or if we cannot recover full losses
from another person's insurer) reduces your no-claims discount by two years.
However, if damage to your car is limited to accidental breakage of glass in
the windscreen or windows (and you have this cover insured) any payment made
up to 650 will not affect the allowance of your discount. If you claim for
an amount above 650 then your no-claim discount will be reduced at next
renewal by two years. It is important to remember that this is a no-claims
discount and not a no-blame discount. If a loss occurs and we have to make a
payment then your No Claim Discount will be reduced unless we can recover
our outlay. For example, your car may be damaged by Fire or by an
untraceable third party.
Can I tow a trailer or caravan?
Yes if they are not being used for commercial purposes and are within the
limits allowed by law. A small additional premium will be charged. Your
policy provides cover for legal liabilities while you are towing, but it
doesn't provide cover for damage to the trailer itself or the items being
towed, nor does it provide cover whilst the trailer is detached from your
vehicle. We recommend that you arrange separate cover for these risks.
Am I insured under my own policy if I drive someone else's vehicle?
No. You must ensure that if you are driving a vehicle that does not belong
to you that the owner of that vehicle has arranged for you to drive under
the terms of their Insurance policy.
What if I want to take my vehicle outside of Spain?
If you are travelling abroad especially to the UK for a period longer than a
month please tell your Insurance Adviser how long you are travelling for.
Depending on your policy cover will be provided for selected countries. If
you intend to stay in any EEA country other than Spain for longer than 3
successive months you should arrange a new policy locally.
What do I do if I want to include an additional driver on my policy?
Your current schedule/certificate of Insurance/Receipt shows who is covered
to drive your vehicle. If you need to add any further persons to those
entitled to drive you need to speak to your insurance adviser. In certain
cases an additional premium may be charged and we may need to issue a new
policy, but your insurance adviser will provide you with all the information
you need.
What do I need to do if I change my vehicle?
If you change your vehicle, please tell your Insurance Adviser immediately
and return the following documents to them - Certificate of
Insurance/Receipt/Green Card.
What happens if I cancel my motor policy after a few months?
Most insurance policies are designed to run for 12 months and the premium
you pay is for a full year. Therefore if you cancel mid-term and do not take
out another policy, strictly speaking you are breaking your agreement to
insure for the full year. If you do cancel there are still a number of costs
that have to be paid for, such as administration, documentation and
commission to the agent that arranged it. These costs have to be covered no
matter how long the policy runs. Therefore if you cancel within 12 months
you will be charged on a short period, rather than a pro-rata, basis and the
refund you will receive may be quite small. The short period rates are
detailed in your policy.
What is Buildings insurance and what does it cover?
Buildings insurance aims to cover damage to the actual structure and
fittings of your home by the perils stated in the policy. It will also cover
toilets, baths and fitted kitchens, your interior decorations and bedroom
fitted cupboards. Don't forget swimming pools, gates, fences, tennis courts,
drives, garages and other outbuildings You can also insure against
subsidence, heave and landslip (compared to other Spanish market policies
that don't) if your buildings are not more than ten years old (However this
can also be included for older properties subject to a satisfactory survey).
The cover or sum insured that you arrange needs to be sufficient to cover
the total rebuilding cost of the property you live in - not the market value
of the property, as this is likely to be higher than the cost it would take
to rebuild. As the homeowner it is your responsibility to get the sum
insured right, because any under-insurance could result in a claim being
reduced.
What does Home Contents cover?
Almost everything that you own and would take with you if you moved house.
This will include furniture, kitchen equipment, food and drink, electrical
appliances including televisions, computers, entertainment equipment,
clothes, ornaments and valuables. As with all policies there are some
exceptions and exclusions so we recommend that you take time to read the
policy booklet to discover those that apply. If you are in any doubt consult
your Insurance Adviser. You will also discover some important extensions to
cover. For example - your legal liabilities. So, if as occupier of your
home, you cause injury to someone else, or damage their property, your
policy will pay, if your liability is proven. In addition your defence costs
can also be covered.
How much do I need to insure my home for?
For Buildings insurance, you should insure your home for its full rebuilding
cost i.e. how much it would cost to rebuild if it was totally destroyed.
This is different to the market value of your home You can find your home's
rebuilding cost on the Valuation Report or Survey you had done when you
purchased the property (although if it is more than a couple of years old it
almost certainly needs to be increased to take account of inflation). For
contents insurance, you should insure the contents of your home for how much
it would cost you to replace them new today. To decide what your minimum sum
insured should be, it is a good idea to make an inventory checklist of
absolutely everything you can think of in and around your home. Then
calculate how much it would cost to replace each of the items. This should
include things that you have made or built, been given or bought, as they
would all need to be replaced if they were stolen or damaged. You should
also try to include an approximate date on which the item was purchased and
gather together any receipts you may have. Making this list may seem a
tedious thing to do, as you will have to go through every room in the house,
listing every item and then attributing a replacement value to it. However,
it is worth taking the time to do this properly, as you may be surprised at
how high the eventual total is.
I own a small holiday apartment and I only need contents cover, what should
I do?
There is a policy designed to cover small holiday apartments. It provides
the same cover as home contents but is rated on the number of bedrooms.
What does the Accidental Damage to Contents extension mean?
This cover is not available for Holiday/Second Homes in Spain but standard
cover such as fire, theft, water damage etc., under Permanent homes can be
extended to include other loss or damage claims to household goods such as
breakage of furniture, staining of carpets etc.
Which law is applicable to the contract?
You and the Insurers are free to choose the law applicable to this contract
but in the absence of agreement to the contrary, the law of the country in
which you reside at the date of the contract (or in the case of a business,
the law of the country in which the registered office or principal place of
business) will apply. In respect of property in Spain, Spanish law on
Insurance Policies 50/1980, dated 8 October and Spanish Law 30/1995, dated 8
November, on Ordination and Supervision of Private Insurance and related
subordinate legislation apply.
What if my Lender asks for a copy of the policy?
No problem, a copy can be provided for you to pass on. You should have a
copy including a Schedule that notes their interest and complies with what
they want.
Are there any circumstances that don't normally apply to my home and its
insurance in the UK?
Depends on the policy we recommend certain policies that cover as in the UK,
thereby giving you the best of both worlds.
For example if you rent your holiday villa and you find that it has been
flooded just before your 'renters' are due to arrive and they cancel their
booking because of it is best to have cover for loss of rental income. Or as
another example if you arrive and find that the property is not habitable
due to damage caused by an insured peril then its best to have the cost of
alternative accommodation provided. If you have arranged for the optional
Emergency Travel extension to be included and there is major damage to your
property whilst you are back home, then travel and accommodation costs can
be covered up to specified limits to enable you and one other person to
travel out to Spain and take control of the loss.
Are my belongings covered outside the home or when I go on holiday?
Only if you have arranged cover for All Risks. Items specified under this
section are covered against theft, loss or accidental damage outside your
home and within the geographic area you have chosen - Europe or Worldwide.
What differences are there to the policy if my home is a second or holiday
home?
Apart from the exclusion of cover for valuables cover provided is similar.
It may be a requirement to provide additional security protection to
eliminate the higher risk of robberies and break-ins whilst the property is
unoccupied.
How can I make my home secure?
You may be busy tanning on the sun-drenched beach or by the communal pool,
or have just nipped out, to the local shops or for a coffee, but if you're
not careful you could be setting yourself up for a very unpleasant
homecoming - a burglar can be in and out of your home in two minutes. And
whilst crime is not yet so prevalent here on the Mediterranean, it is on the
increase.
The feeling that someone else has been in your home can live with you for a
long time. The key to real peace of mind is prevention in the form of
security. You may have had a minimal amount of valuables at the start of
your insurance and not much in the way of a safe or security system, but
since then you may have purchased various items of jewellery. This has
obviously changed the nature of the risk and it is unlikely that these
higher valued items are covered.
The following is the minimum standard of security we expect for standard
properties:
Doors
Outside doors should be solid timber and be secured with 5 lever mortice
deadlocks or their equivalent. These locks can only be opened by key. A
burglar cannot just use a plastic card to push back the tongue of the lock
or break a glass panel and reach in to open it. Doors that you usually lock
from the inside - for example the back door should also be fitted with
bolts.
Patio doors or other glass door should be fitted with key operated bolts to
the top and bottom opening sections in addition to a central locking device
- this stops the sliding frame being lifted off the tracks. In addition
sliding grilles should be fitted internally and secured with clasp locks.
Windows
Most burglaries are through windows. Where grilles or rejas have not been
fitted, key operated locks must be fitted to all accessible windows - those
on the ground floor and those near drainpipes and flat roofs.