Law 5/2025: key changes for your car and motorbike insurance
The Law 5/2025 updates the rules on compulsory motor insurance in Spain. For those who drive cars and motorbikes, does not change the obligation to insure, but it does how accidents are interpreted (traffic event), how complaints are handled y what guarantees exist if the insurer is insolvent or the claim occurs abroad?. In addition, the strengthens control that all vehicles are insured.
What has really changed for cars and motorbikes?
“Circulation fact”, also in private spaces. The reform clarifies that certain claims count as circulation even off public roads (e.g. garages, car parks, estates or compounds), which reinforces the activation of compulsory insurance.
Reinforced control of insurance. Insurers are required to submit essential policy information to the Consortium to facilitate insurance monitoring and the rapid identification of the responsible entity following an accident (with possible penalties for non-compliance). For the driver, this means less waiting to find out “who covers me”. Protection in claims with insolvent insurers or vehicles stolen abroad.
Complaints: reasoned offer, medical reports and deadlines
Reasoned offer with definitive medical expert report. The insurer must accompany the reasoned offer with the final expert medical report supporting the amounts (temporary injuries, after-effects, etc.). Without such a report, the offer is invalid and does not avoid interest for late payment.
Key deadlines. The law insists on a maximum time limit of 3 months to issue a reasoned offer or response from the complaint; it also sets time limits for IMLCF (up to 3 months for examination and 1 month for the report, where applicable).
What if the other party has no insurance, their insurer goes bankrupt or it is theft?
Uninsured vehicle / insolvent insurer. The Consorcio de Compensación de Seguros indemnifies the victim resident in Spain, with subsequent reimbursement if applicable. This avoids you being “left hanging” if the counterparty cannot respond.
Vehicle stolen in another state. If the guarantee fund in that country does not cover stolen goods, the Spanish Insurance Compensation Consortium (Consorcio de Compensación de Seguros) assumes payment.
Quick FAQ
Does it make a difference if I only drive in the city and park in a garage?
Yes on clarity: the concept of fact of circulation covers more scenarios in private venues, which avoids gaps and facilitates reclamation.
Can they take more than 3 months to offer me compensation?
The general rule is 3 months to offer or respond with a definitive expert report; if not, it is not a valid offer and interest may be due.
If the other party's insurer goes bankrupt, who pays me?
The Insurance Compensation Consortium covers the injured party resident in Spain in cases of insolvency of the entity or stolen vehicle (with nuances).
Do you want us to check if your car or motorbike policy is in line with these changes and if you want to extend your cover? Click here and we will contact you to give you personalised advice.
