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All About Car Insurance in Portugal

Car insurance is a fundamental aspect of car ownership, providing financial protection and peace of mind to drivers in case of accidents or unforeseen events. Just like in many other countries, car insurance is mandatory in Portugal. In this article we will provide you with a detailed overview of car insurance in Portugal, plus the types of coverage available, the factors influencing insurance premiums, and the steps to obtain the necessary coverage, so that your move to Portugal goes as smoothly as possible. Come find out more!

Frederik Pohl
Frederik Pohl, CEO
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What are the Types of Car Insurance in Portugal?

In Portugal, there are several types of car insurance policies available, each offering different levels of coverage. These policies are categorized into three main types:

1. Third-Party Liability Insurance (Responsabilidade Civil Automóvel)

Third-party liability insurance is the minimum mandatory coverage required by law for all vehicles in Portugal. This type of insurance covers the damage you may cause to others, including bodily injury and property damage, while driving your car. It does not cover damage to your own vehicle. However, you can usually add ‘extras’ to supplement this type of insurance and cover more situations. It is mostly recommended for older cars.

2. Third-Party Liability with Add-Ons (Responsabilidade Civil Automóvel com Coberturas Complementares)

This insurance type extends the basic third-party liability coverage by adding optional coverages – such as theft, fire, and glass breakage. It provides a broader level of shielding compared to basic third-party insurance, plus some protection towards your own car when it comes to environmental damages – such as a fire or storm -, and theft. But, of course, this varies from insurer to insurer and, again, you can always get the add-ons you desire. This is a great policy if your vehicle is between four and 10 years old.

3. Comprehensive Insurance (Seguro Contra Todos os Riscos)

Comprehensive insurance, also known as “all-risk” insurance, is the broadest and most complete coverage available in Portugal. It includes not only third-party liability but also extensive damage to your own vehicle – including accidents, theft, fire, vandalism, and natural disasters. This, of course, comes with a price, but is definitely the best level of protection you can get and especially recommended for new cars. Be aware that even this type of insurance still excludes accidents in which the Portuguese Road Code was heavily violated – such as driving under the influence and not respecting the STOP sign.

Import your Vehicle to Portugal

Import your vehicle to Portugal – hassle-free and fast. We offer support for everything you need, from securing the right insurances to navigating the smooth importation of your vehicle.

How much does car insurance in Portugal cost?

The cost of car insurance in Portugal depends on a lot of factors:

  • How old the vehicle is
  • In what condition it is in, plus make and model
  • Age and driving record of its main driver
  • The car’s use (personal, work, etc)
  • What area of Portugal you live or work in
  • Annual Mileage

Generally speaking, for third-party liability insurance, the plans usually start at around 150€/year, while third-party liability with add-ons starts at around 200€ and fully comprehensive insurance at 350€. However, again, this massively depends on the insurance provider and all the factors mentioned above.

How can I get car insurance in Portugal?

Popular insurance providers in Portugal

Research and compare insurance providers to find the one that offers the coverage you need at a competitive price. Some popular examples of insurance providers in Portugal are:

  • Ok! Seguros
  • Tranquilidade
  • SeguroDirecto
  • Allianz
  • Fidelidade

You can also compare their prices and conditions on websites such as Compare o Mercado.

What documents do I need?

  • Vehicle registration documents (Documento Único Automóvel)
  • Your driver’s license
  • Personal identification (passport or Portuguese ID card)
  • Proof of address (utility bill or rental contract
  • Vehicle inspection certificate (Certificado de Inspeção)

Everything will be set in place right after you make the first payment, meaning that the process is rather quick. The insurance company will then provide you with:

  • An insurance certificate (which you should keep in the car)
  • Claims forms
  • An insurance disc, which you legally need to place on your windshield
  • An information booklet detailing your policy
car insurance portugal
Review the Policy

You must carefully review the policy terms, conditions, and coverage limits before signing the contract. Ensure that the policy meets your needs and budget. These are some usual add-ons people get:

  • Breakdown (avaria) – covers costs of repairs, a replacement vehicle if you break down on a journey and a taxi to get you to your destination
  • Windshield (para-brisas) – covers windshield and auto glass damage
  • Severe accident (dívida segura) – covers costs of impairing injuries – and death – caused by a car accident 
  • Drivers abroad (Portugueses no estrangeiro) – provides the same coverage when you’re driving your car in a foreign country
Paying Car Insurance 

Once you accept the policy terms, you will need to pay the insurance premiums. You can usually choose between paying annually or in instalments.

Renewing Your Policy

Car insurance policies in Portugal typically run for one year. You will need to renew your policy annually to maintain coverage.

How Pearls of Portugal can help you

Car insurance in Portugal is a legal requirement, and it provides essential protection for both drivers and third parties. Understanding the types of coverage available, the factors that influence premiums, and the steps to obtain insurance can help you make informed decisions when insuring your vehicle. When you work with Pearls of Portugal, we will put in you contact with our trusted insurance providers!

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