Law 5/2025: Key Changes for Your Car and Motorcycle Insurance
Law 5/2025 updates the regulations on compulsory automobile insurance in Spain. For those who drive cars and motorcycles, the insurance obligation does not change, but it does change how accidents are interpreted (traffic accidents), how claims are processed, and what guarantees exist if the insurer is insolvent or the incident occurs abroad. In addition, it strengthens the control over ensuring that all vehicles are insured.
What has really changed for cars and motorcycles?
“Traffic accidents”, also in private spaces. The reform clarifies that certain accidents count as traffic accidents even when they are not on public roads (e.g., garages, parking lots, estates, or enclosures), which reinforces the activation of compulsory insurance.
Reinforced insurance control. Insurers must submit essential policy information to the Consortium to facilitate insurance oversight and rapid identification of the responsible entity after an accident (with potential 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.
Claims: Reasoned offer, medical reports, and deadlines
Motivated offer with a final expert medical report. The insurer must accompany the reasoned offer with the final expert medical report that supports the amounts (temporary injuries, after-effects, etc.). Without this report, the offer is invalid and does not avoid late payment interest.
Key deadlines. The law insists on a maximum period of 3 months from the date of the claim to issue a reasoned offer or response; It also sets deadlines for the IMLCF (up to 3 months for recognition and 1 month for the report, where applicable).
What happens if the other party is uninsured, their insurer goes bankrupt, or it’s a theft?
Uninsured vehicle / insolvent insurer. The Insurance Compensation Consortium compensates the victim residing in Spain, with subsequent reimbursement if applicable. This prevents you from being “left hanging” if the other party cannot respond.
Vehicle stolen in another country. If that country’s guarantee fund doesn’t cover stolen goods, the Spanish Insurance Compensation Consortium assumes payment..
Quick FAQs
Does it change anything if I only drive in the city and park in a garage?
Yes, in terms of clarity: the concept of the fact of driving covers more scenarios in private premises, which avoids gaps and makes it easier to claim.
Can it take more than 3 months to offer me compensation?
The general rule is 3 months to offer or Respond with a final expert report; otherwise, the offer is not valid and interest may accrue.
If the other party’s insurer goes bankrupt, who pays me?
The Insurance Compensation Consortium covers injured parties residing in Spain in cases of insolvency of the entity or stolen vehicle (with nuances).
Would you like us to review whether your car or motorcycle policy is aligned with these changes and whether you should extend your coverage?
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