How to switch insurance in Spain, step by step

The legal deadline: one month before renewal

Spain's Insurance Contract Act says you can object to the automatic renewal of your policy by giving written notice at least one month before the expiry date. The insurer, in turn, must give you two months' notice if it wants to change your terms.

That means the moment to compare is not when the invoice arrives, but one to two months earlier. Miss the deadline and the policy renews for another year, and you can only cancel at the next expiry date.

The five steps of switching

Order matters: never cancel before you have the new policy signed with a start date.

• 1. Find the expiry date on your current policy (not the payment date).
• 2. Request comparable quotes: same sum insured, same cover, same deductible.
• 3. Take out the new policy with a start date the day after your current expiry.
• 4. Send written cancellation to the old insurer and keep proof of receipt.
• 5. Check that no further payment is taken. If it is, you can claim it back.

How to write the cancellation

You do not need complicated wording. Your name, DNI or NIE, policy number, a line stating that you object to automatic renewal under article 22 of Law 50/1980, and the expiry date is enough. Send it by email with read receipt, through the company's official form, or by registered post.

Mistakes that cost money

Most problems when switching insurance come not from price but from administrative details.

• Cancelling before the new policy exists: you are left uncovered, and for a car that is an offence.
• Comparing prices with different cover: the "cheap" quote almost always covers less.
• Not asking for your no-claims history to be recognised on car policies.
• On health policies, not asking for completed waiting periods to be recognised.