Certain types of insurance in Spain are compulsory, for example:
- Social insurance – The social security system in Spain requires all workers earning at least minimum wage to contribute social security payments every month. In addition to healthcare, social security in Spain includes: work-related sickness or injury, family and child benefits, invalidity benefit, old-age pension and unemployment benefits.
- Health insurance – Spain has a state-funded healthcare system which provides free healthcare to all residents. If you qualify to access the state system, this will be covered by your social security contributions. However, many expats choose to pay for optional private health insurance also. The benefits of which include shorter waiting times and access to English-speaking doctors.
- Car insurance – If you wish to drive in Spain, the law requires a minimum level of car insurance (also known as seguro a terceros), which covers damage to third parties, fire and theft.
There are other types of insurance that you might need in addition to the above, such as: Dental insurance (social insurance only covers the annual dental check-up and cleaning for children up to the age of 18), Home insurance, Contents insurance, Life insurance, Unemployment insurance, Commercial insurance and Pet insurance.
Cancelling your insurance:
As of 2016, you must give a notice period of at least one month if you wish to cancel any insurance policy prior to the renewal date.
However, insurers must notify you to any changes to the policy (such as a price increase), two months prior to your renewal. If they fail to do so or they inform you late, you have the right to refuse this increase and continue to pay the old premium, or cancel the insurance altogether.