Insurance

Understanding Insurance in Spain:

Published

2 months ago

November 8, 2024

Admin

Understanding Insurance in Spain: Essential Coverage for Foreign Residents

When moving to Spain, it’s essential for foreign residents to understand the types of insurance available to protect their health, belongings, and financial well-being.
Spain offers a range of insurance options, from mandatory health and car insurance to optional coverage for life, home, and travel.
Each type has specific considerations for expats to ensure they’re adequately covered in their new country.

1. Health Insurance

Public Health Insurance (Seguridad Social)

Spain has an extensive public healthcare system that provides coverage to residents.
Public health insurance, called Seguridad Social, is automatically available to anyone employed or self-employed in Spain, as contributions are deducted from salaries or income.
It offers a wide range of healthcare services, including doctor visits, emergency care, and hospital treatment, often at little to no cost.

Important for Foreigners: Expats who are employed or self-employed can access public healthcare.
However, coverage can vary, and wait times may be longer than in the private sector.
Public healthcare may also have limited English-speaking staff, which can be challenging for non-Spanish speakers.

Private Health Insurance

For faster service, access to private facilities, and English-speaking staff, many expats opt for private health insurance.
Private policies cover a wide range of medical services and may also include dental care and specialist visits.
Monthly premiums can range from €40 to €200, depending on age, coverage, and health conditions.

Important for Foreigners: Non-EU citizens who do not qualify for public healthcare may need private insurance to meet residency requirements.
Additionally, private insurance allows access to private clinics and hospitals, shorter wait times, and often English-speaking providers.

2. Car Insurance

Car insurance is legally required in Spain for all vehicle owners, even for cars that are not driven regularly.

Third-Party Insurance (Seguro a terceros): The minimum coverage required by law, covering damage to other vehicles or injuries to third parties in an accident.
Third-Party, Fire and Theft (Seguro a terceros ampliado): Extends basic coverage to include fire damage and theft.
Comprehensive Insurance (Seguro a todo riesgo): Provides full coverage, including damage to your own vehicle, regardless of who is at fault.

Important for Foreigners: For expats planning to drive in Spain, comprehensive insurance is often the best choice for peace of mind,
especially in crowded cities or for new drivers unfamiliar with local road rules.

3. Home Insurance

Home insurance is not legally required in Spain but is highly recommended for both homeowners and renters.

Basic Coverage (Seguro de hogar básico): Covers the structure of the property (building insurance) and, sometimes, basic contents.
Contents Insurance (Seguro de contenido): Covers household belongings in case of theft, fire, or water damage.
Liability Insurance (Responsabilidad civil): Protects against accidental injury or damage to third parties.

Important for Foreigners: Even if renting, having contents insurance is important to protect valuables.
Also, liability coverage can be essential, as landlords may require it to cover potential damage or accidents.

4. Life Insurance

Life insurance is optional but can be beneficial for expats, especially those with dependents.

Term Life Insurance (Seguro de vida a plazo): Provides coverage for a specific period.
Beneficiaries receive a payment if the policyholder passes away during the term.
Whole Life Insurance (Seguro de vida entera): Offers lifelong coverage and may also serve as an investment,
with beneficiaries receiving a payout regardless of when the policyholder passes away.

Important for Foreigners: Life insurance is recommended for expats with dependents or those who want to provide financial security for their family.

5. Travel Insurance

Though not required, travel insurance can provide valuable coverage for foreign residents who plan to travel within Europe or back to their home countries.

Single Trip Insurance: Covers one specific trip, ideal for occasional travelers.
Annual Multi-Trip Insurance: Covers all travel within a year, perfect for frequent travelers.
Medical Travel Insurance: Provides medical coverage specifically for emergencies abroad, often required by Schengen visa rules for non-EU visitors.

Important for Foreigners: Expats who frequently travel back to their home countries or explore other parts of Europe can benefit from annual multi-trip insurance,
ensuring they’re covered for medical emergencies or trip disruptions.

6. Pet Insurance

Pet insurance is becoming more popular in Spain, especially for dogs and cats.It can cover veterinary bills, medications, and even liability if the pet causes harm to a third party.

Basic Coverage: Covers emergency vet visits and treatments.
Comprehensive Coverage: Includes routine care, vaccinations, and liability coverage.

Important for Foreigners: Pet insurance is especially useful for expats bringing pets to Spain, where some treatments can be costly.

7. Liability Insurance

Liability insurance is commonly bundled with other policies, like home or car insurance, but can also be purchased separately.
This insurance is particularly relevant for protecting against claims of accidental injury or property damage to third parties, whether in your home, at work, or in other settings.

Important for Foreigners: Liability insurance is crucial for expats in Spain, especially those who frequently host visitors or have properties where accidents could occur.

Insurance Providers in Spain: Spanish Companies vs. Foreign-Friendly Agencies

Spanish Insurance Companies

Spain is home to a variety of reputable national insurance providers, such as Mapfre, Seguros Bilbao, and Mutua Madrileña.

Advantages: Broad availability, comprehensive coverage, and cost-effective options.
Considerations for Foreigners: Language barriers and limited international coverage.

Agencies Catering to Foreign Residents

Expats in Spain also have access to agencies specializing in services for foreigners, like Cigna Global and AXA.

Advantages: Language support, flexible international coverage, and expat-focused options.
Considerations for Foreigners: Higher premiums and limited local benefits.

Choosing the Right Insurance as a Foreigner in Spain

Determine Coverage Needs: Evaluate whether you need local or international coverage, especially for health, travel, and car insurance.
Assess Language and Support Needs: Consider providers or agencies that offer bilingual support.
Check Residency Requirements: Verify that your policy meets specific residency requirements.
Compare Policy Terms and Prices: Insurance costs vary significantly between Spanish and international providers, so compare options to get the best value.

Conclusion

For foreigners living in Spain, understanding and securing the right insurance coverage is essential for peace of mind and financial stability.
Spanish insurance companies offer cost-effective and locally tailored options, while agencies specializing in foreign-friendly services provide valuable
language support and international coverage.

New In Spain works with multiple insurance companies to help find the right coverage for foreigners.
If you’re interested in receiving an insurance offer, please click here, fill out the requested information, and we’ll provide a customized quote.

Remember, the cheapest price does not always give you the coverage you need, so it’s important to ask all your questions and understand the answers fully before signing an insurance contract.

For more insights on living, working, and securing essential services in Spain, visit New In Spain.

Insurance

The Spanish insurance sector in a nutshell

Published

2 months ago

November 23, 2024

Jenny Larson

Compared to other countries

No matter where you move there will always be smaller differences on several issues. Among these could be how big your plate of food is, how punctual an appointment is and how legal and financial matters are handled.
In the insurance sector there will also be covers that a large proportion of families has in Germany, where’s in Spain the same cover is not offered.
Either because of climate differences or the because of the desire from the insured.
The desire again is dependent on the cultural differences, in Spain more than half the population has contracted a funeral insurance where´s in Scandinavian countries this number is not even 10% of the population. Scandinavian citizens however tend to choose accident covers opposed to a funeral insurance.

What´s important to cover?

When residing in a country it is important to choose an insurance package that suits one’s own unique needs, but also depended on the geographical scope of the environment.
Relating to homeowners’ insurances that could include high risks of weather phenomena like cold and warm or a higher risk of robberies etc.
Some locations have minor changes doing the year in relation to temperature where building materials therefore suffer less, there is for example big differences in the weather swings on the island of Tenerife
from north to south.
Risk assessment regarding how to cover your home should therefore also be depended on these factors.

The geographical location could also provide indications that other insurances would be interesting to consider. One of the largest fluctuations between the Spanish autonomous communities is the way
healthcare is provided it´s residents. Even if Spain has a very good healthcare system there are far more waiting for the services on the Canaries compared to the mainland.

Residents on these islands are currently on waiting lists for an average of 151 days for surgical interventions and 134 days for the first consultancy with a specialist.
Where the patient living in the Basque country would he face an average of 68 days for surgical intervention and 30 days for the first consultancy with a specialist.
If one therefore might desire to live an active lifestyle but would go crazy waiting an average of 229 days for a hip surgery, a private Health Insurance would provide more comfort,
and getting the desired treatment lightning fast compared to the National healthcare system.
The following figure is the latest rating of the Spanish health insurance companies.
The rating is made by the Spanish consumer organization OCU by interviewing 8.000 insured in Spain

Other insurances most families choose are auto, life, accident. However, many foreigners residing on the Island are business owners and even if these are less depended on
the geographical location it is always important to get the right cover.

Broker or Agent?
Compared to other countries in Europe many chooses to work with a broker of more than one insurance provider.
The benefit of this is flexibility because the broker can move you from one company to another due to an increase in premium after several claims.
Another benefit is that if one company does not provide cover for the risk the broker can place the risk in another company that he still has collaboration with.

There are also some major minuses using a broker instead of an agent. One of these could be the conflict of interest.
Let´s imagine a broker collaborate with A, B and C company on homeowners’ insurance and he gets different commissions from all three.
Will he then offer the cover that suits the clients needs best or where he obtains the highest commission? Another drawback is related to having one broker but several insurance companies.
You never really start a real relationship with the company who must pay your claim in case you need it.
Other problems could arise in claims situations where more than one policy must pay out, you then have two or more appraisers from different companies involved.
Finally, you do not obtain very much goodwill with each of the insurance companies by having your risks covered in several companies, the one you do obtain relationship with is the broker.

For more than 15 years have we been helping people improving their insurances and with a broad experience from different cultures and countries are we able to identify your needs and explain the covers in a transparent way giving you most value from your money.

Are you interested in talking to an insurance professional on how to improve your covers aligned with what’s important for you on Tenerife?
Please don´t hesitate to contact us here, fill out the form, and we will comeback to you.