Five Insurance Mistakes That Cost Import Buyers Real Money

Mistake 1: assuming there is no gap in cover

Between the car arriving in Spain and the DGT issuing Spanish plates, a standard annual Spanish policy usually cannot be bound. Owners who assume their foreign policy simply keeps working the whole time, without checking its territorial scope and duration limits in writing, sometimes find out only after an accident that cover had already lapsed under the foreign policy's terms for extended stays abroad. Confirm your existing cover's exact limits before the car leaves its country of origin, and ask a broker about a specific import or transit policy for the gap if needed.

Mistake 2: declaring the wrong value

Some buyers declare the car's original new price rather than its actual purchase price to try to get a higher payout in case of total loss; others under-declare to save a few euros on the premium. Both create real risk: Spanish insurers cross-check the declared value against the invoice and market data, and a mismatch can lead to a reduced settlement or a refused claim precisely when the money matters most. Declare the real purchase price, supported by your invoice or sale contract.

Mistake 3: not requesting the no-claims certificate before cancelling the old policy

Once a foreign policy is cancelled, getting a clean, dated no-claims certificate afterward is harder and slower than requesting it while the policy is still active or immediately upon cancellation. Ask for it in writing the moment you know you are moving, not weeks later when a Spanish insurer asks for it and you have to chase a call centre abroad.

Mistake 4: choosing cover level by habit rather than by the car's actual value

Sticking with the same comprehensive cover you always had, without checking whether the car's current market value in Spain still justifies the premium difference over third-party-fire-and-theft, is an easy way to overpay year after year. Recheck cover level annually, especially once the car has depreciated a few years past import.

Mistake 5: not telling the insurer the car is imported and modified accordingly

If the car needed a headlight conversion, a badge or trim change, or any modification to pass the Spanish ITV, that needs to be reflected accurately when you insure it. An insurer that later discovers an undisclosed modification during a claims investigation can treat the policy as void from the start, which is a far worse outcome than a slightly higher premium for disclosing it upfront.

• Get written confirmation of your existing policy's territorial scope and duration limits before the car leaves its home country.
• Request your no-claims certificate the moment you decide to move, not after cancelling the policy.
• Declare the real purchase price, backed by paperwork.
• Review comprehensive vs third-party cover against the car's actual current value each renewal.
• Disclose every modification made for the Spanish ITV, however small it seems.

Frequently asked questions

Is it worth using an insurance broker instead of going direct?

For an imported car specifically, yes in most cases — a broker who regularly handles expat and import clients already knows which insurers accept foreign no-claims certificates generously and which ones write short-term import cover, saving you from calling a dozen companies yourself.

Can I insure the car before the ITV inspection just to be safe?

Generally no for a standard annual policy, since the insurer needs the Spanish technical data; what you can arrange in advance is confirmation of your existing cover's validity and, where available, a specialist transit or import policy for the interim.

Does a small ITV-related modification really matter to an insurer?

Yes — insurers rate risk partly on the vehicle's exact specification, and an undisclosed change, even a minor one, is grounds to dispute a claim later. Disclosure costs little now and protects the entire point of having the policy.