Spain

INSURANCE

These are only general information about insurance in Spain. Please consult a lawyer or insurance company for more details.

Insurance (seguro) or policy is a contract relationship entered into by the insurer and the insured. It must contain all of the elements necessary for a valid contract. The mutual considerations here are the premium paid by the insured and the promise of coverage made by the insurance company.

The amount for which the policy covers the loss must be indicated.

Usually the term during which the policy will be in effect is 1 year, after which it is renewed automatically unless you decide not to renew it, in which case you should previously advice the insurance company a few months before it is due.

Life insurance (seguro de vida):
The person whose life is insured is generally called the “insured”. The person named in the policy to benefit from the death of that person is called the “beneficiary”.
The insurance company normally requires a medical exam from people who are applying for life insurance.
The company may specifically exclude certain coverage, such as the coverage of death by suicide.

Health insurance (seguro de enfermedad):
The insurer agrees to pay to the insured a stipulated sum in the event of illness or temporary disability, as well as cover the cost of medical assistance.
There are two types of health insurance:

Medical assistance: The insurance companies have a range of doctors (cuadro de medicos) who may assist you.
The reimbursement of expenses for medial assistance: you can go to any doctor (outside of “cuadro de médicos”) and the insurance company will return the medical expenses to you within certain limits.

The policy cost will be increased for example if:

the insured is over 60 years old
a woman would like to cover the pregnancy

Home insurance (seguro de hogar):
Property insurance covers property itself and the things you keep in it against force majeure.
The premium of the policy will depend on the value of the house and the risks you wish to be covered for.

Car insurance (seguro de coche):
There are two categories of car insurance:

Third party (seguro contra terceros)
Fully Comprehensive (seguro a todo riesgo)

The first one (third party cover) is mandatory in Spain. It is the minimum insurance required by Spanish law to drive a vehicle in Spain. It covers the risk for causing personal injury and damage on third party’s property (driver and passengers in another car which it collided with, pedestrians etc)

This insurance will not cover the damages caused in any of the following cases:

The driver was under the influence of drugs or alcohol
The vehicle is driven by a person that the owner did not authorize
The driver does not have a driving license

The second one (fully comprehensive) covers the injuries and damages non-covered in the third party liability insurance:

Injuries to the insurance holder, the car owner, driver and passengers
Damages to the vehicle irrespective of how it is caused. Against fire and breakage of glass
Damages to car contents
Theft of the vehicle