Car insurance in Spain is a legal requirement. 
You must carry your insurance documents in the vehicle with you and you will be fined if you can’t show them to the police on demand.

Make sure you’re familiar with what your policy covers and you know where all the assistance numbers are.

Car insurance can be obtained through either a Spanish or English company with offices in Spain.  There is a lot of competition so shop around for the best deal.  If you take out a policy with a Spanish company be sure you fully understand all the documents relating to it.

If you have a no-claims bonus from your UK policy you should get this translated into Spanish as it will count towards your policy in Spain.  No-claims bonuses are also applied to Spanish insurance policies.

There are three main types of car insurance in Spain:

• third party (responsabilidad civil obigatoria/seguro obligatorio)
• third party, fire and theft (responsabilidad civil obigatoria, incendio y robo)
• comprehensive (todo riesgo)

Insurance premiums tend to be lower than many other EU countries and many policies include a green card (allowing you to drive throughout the rest of Europe) and breakdown assistance.

If you want to cancel your motor insurance (because you no longer need a vehicle, are leaving Spain, or have found a cheaper policy) be sure to inform the insurance company in writing.  Some companies require up to two months’ notice so this is something to keep on top of unless you want to loose money.