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 it’s 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.