What you need to know about Car Insurance if you wish to drive in Portugal

by Liz Seyi Digital marketing manager

Do you fancy a spin around Portuguese roads? If you are set to permanently relocate to this southwest European country, you should heed its rules and regulations when it comes to car insurance – as in this part of the continent, you would legally need such cover to be at least third-party liability level.

Still, you should be meticulous when looking for insurance for your Portugal-bound car, as this particular area of Portuguese law can sometimes feel like a bit of a minefield.

You need to insure the vehicle, not the driver

This is one especially notable peculiarity of vehicle insurance law in Portugal. Once your car is insured for driving on Portuguese roads, anyone with a clean driving license can legally put the car to this purpose.

You do, however, need to register the car locally before you can insure it for use in Portugal. While this vehicle registration is mandatory anyway if you will be residing permanently in Portugal, it’s a thankfully easy process to undertake.

It would just require you to approach, from your Portuguese home, the local office of the country’s Institute of Mobility and Transport (IMT) and getting your car registered there. If your Portuguese home is in a city or a highly populated area, an IMT office is likely to be within easy reach.

What type of Portuguese car insurance should you take out?

There are two main types of car insurance for the Portuguese market: third-party cover and fully comprehensive cover. The former would be the bare minimum legally permissible but, should an accident occur, it will only cover the costs of material and personal damage to third parties.

If you want to additionally cover costs linked to you or your own car, you need to step up to comprehensive insurance like that available from our car insurance brokers in Portugal here at Ibex. After taking out this insurance, you would be able to request a claim on it if, for example, your car sustains fire damage or is stolen on Portuguese territory.

We do, however, also offer Portuguese car insurance policies on a strictly third-party basis if you would prefer this option. The choice is ultimately yours – and you should consider that our car insurance policies allow for no-claims bonuses, which are rarities in Portuguese car insurance.

By ringing our Portugal phone number, 800 860 705, or visiting your nearest Ibex office, you can find out more about your options.