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What does my car insurance cover?

what does my insurance cover

All owners of a powered vehicle are obliged to take out and keep in force an insurance policy covering, up to the amount from time to time determined, the third-party liability of the driver arising out of material damage or bodily injury caused to third parties as a result of a traffic incident.

This obligation imposed on the owner of the vehicle contrasts with the designation of the driver as the person responsible for the vehicle. In other words, although the owner of the vehicle is the Proposer of the insurance, the Insured is its driver. because the policy is covering the driver’s liability not the owner’s.



This insurance covers the driver’s third-party liability but not the bodily injuries or material damage suffered by the driver or his or her vehicle. Compulsory insurance does not cover any of the damage suffered by the vehicle insured nor its driver, but it does cover the rest of the occupants, as these are considered as “third parties”. This is the minimum stipulated in Spanish legislation. For this reason, although it is not obligatory, it is common for additional insurance to be taken out to provide specific complementary cover for the driver.

Should a vehicle cause an accident after it has been stolen, any material damage or bodily injury arising out of its use in traffic would be compensated by the Insurance Compensation Consortium which could, if the culprit is legally identified, demand that the person responsible for causing the accident assume these damages.


On occasions, the compensation corresponding to a third party or a person injured in the accident may exceed the sums set for obligatory vehicle insurance. In such cases, it will be up to the driver responsible to pay the excess of the compensation awarded out of his or her own pocket.

In order to avoid this situation, insurance institutions offer the possibility of taking out additional third-party insurance to extend the compensation cover over and above the amount included under the compulsory insurance.

This voluntary insurance guarantee covers, within the limits agreed, any compensation that exceeds the limit of the third-party liability that must obligatorily be taken out.

Most insurance institutions generally offer other benefits in their policies, providing that voluntary third-party cover has been taken out: guarantees for legal defence in criminal cases, bonds and claims, sometimes also called legal protection insurance for vehicle users.

From January 1st next, with the new compensations limits, this insurance will tend to disappear because it will not be so necessary.


There is really no standard model. It is called "full cover" because, in addition to third-party damage, which you are obliged to insure, it also includes damage to your own vehicle, i.e. your car. Every company has its own products on the market but, in general, apart from covering the damage to our own vehicle, these policies normally offer other complementary cover such as mechanical assistance, compensation for the loss of your driving licence points, access to other types of insurance cover on preferential terms.

Category: Insurance

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