This page on insuring a car in Portugal is designed to help expats in Portugal get the lowest and cheapest quotes on the market.
If you happen to be passing through Portugal for a limited time on holiday then your existing insurance policy should cover you for 2 months driving in Portugal, this page is specifically for people living in Portugal and wishing to insure their car/vehicle (we also can quote for vans, mopeds, scooters, motorbikes/motorcycles) on an annual basis.
This page is also not applicable for people looking for short-term rental car insurance in Portugal, as discussed above, we help you find the lowest prices for insuring a Portuguese registered vehicle (we do not quote for UK registered cars and vehicles).
Online Quotes to Compare Portugal Car Insurance
If you would like a quote for car insurance in Portugal please fill in the ‘no-obligation best deal quote’ form below and let our insurance broker partners do all the hard work by comparing the marketplace to find you the best cheapest car insurance deals:
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The legal/privacy bit we have to put in – Note that you are using this form to submit your details to us so we can then compare the market and give you options for comparing car insurance in Portugal. Our privacy notice at the footer of our website lets you know how we use your data and how to request removal. You don’t need to do anything other than fill in your details and let our brokers do the rest.
Is Car Insurance Compulsory in Portugal?
Yes it is a legal requirement that your car must be insured in Portugal on a third-party basis. So it is not compulsory to have fully-comprehensive car insurance although without it, you take on the full risk and liability of your car should it be involved in an accident, whether your fault or not.
Third-party insurance is known as Responsabilidade Civil Obrigatória and it covers damage to other people or their vehicles (not to your own vehicle).
The next step up would be Responsabilidade Civil Facultativa Juridica which provides cover against accidents with other vehicles and any legal fees accrued through litigation (well worth the extra costs).
To cover your car as well as other people and their vehicles, take out fully comprehensive insurance (Seguro Contra Todos) which covers virtually everything.
Many expats move to Portugal and take their existing car with them. Only then do they consider the legal issue of car insurance. Realistically, your existing policy probably will cover you for two months driving in Portugal maximum. You may wish instead to consider selling your car in your home country and buying a Portuguese registered vehicle once you arrive in Portugal or you could consider re-registering your car in Portugal so it is fully legal on the roads.
Although women drivers in Portugal are statistically less likely to be involved in an accident they still have to pay the same premiums as male drivers thanks to a European Court of Justice ruling that states that “taking into account the gender of the policyholders as a risk factor in insurance contracts is considered as discrimination.”
How much is car insurance in Portugal and how to find the cheapest online quotes?
Costs are likely to be very similar to to other European countries such as the UK or Spain. Factors are the same and these will include, the make, model, age and value of your car, your age and driving history – ideally you have some years of not making any claims (Prémio Bonus Malus).
Your occupation, your location and where you keep the car are all factors as are your use of the vehicle (business use will bound to be more expensive) and your projected annual mileage all count.
Remember that the cheapest price is not necessary the best cover for you and your motor vehicle, some companies will do their best to get out of paying out on any claim you may make. Customer service can also be a nightmare when it comes to claims and insurance companies, check those online reviews before you proceed!
Major insurance companies offering car insurance include Liberty Seguros, Allianz, Fidelidade, IBEX Portugal and Ageos.
Consider additional cover for breakdowns which is known as Assistência em Viagem which covers breakdowns (Avaria) as well as loss of keys (Perda dos Chaves), punctures (Furo de Pneus) and broken windows etc. The ACP, the Automobile Club of Portugal (Automóvel Club de Portugal are one of the main providers of breakdown assistance in Portugal.
For any issues concerning insurance in Portugal contact the government regulator the ASF.
We can help if you are searching for car insurance if you live in popular expat areas such as Lisbon, Porto, Lagos, Braga, Chaves, Albufeira, Coimbra, Setubal, Cascais and Aveiro.
Can You Insure a UK Car in Portugal? (Re-Registering a Foreign Car in Portugal)
The cost of used or second-hand cars in Portugal has increased significantly. Therefore it is a tempting option to register your familiar car onto Portuguese license plates as you already own the car and know it’s mechanical history. Buying a secondhand car is a minefield unless you are mechanically minded.
You want to start this process ASAP as within 20 days of arriving in Portugal you have to declare your car with the Portuguese customs authority (Alfândega) in order to receive a DAV (Declaração Aduaneira do Veiculo) declaration certificate which is necessary for the registration application. You will then pay the ISV tax through customs (this is an annual fee) similar to what we know as road tax in the United Kingdom or IVTM in Spain.
Of course you can pay companies to do the application on your behalf, it would avoid a lot of stress and they know what they are doing so you are paying for their expertise and time. You certainly don’t want to mess up the application and find yourself uninsured, especially if you have an accident! Assume this cost to be between 500-1000 Euros.
If you are determined to do the registration yourself you will need to complete and submit the IMTT (Portuguese Institute for Mobility and Ground Transport) form 9 whether online or at a local office. Part of this is providing documentation that proves you are the legal owner of your car. You will need an invoice, proof of purchase, EU conformity certificate issued by the manufacturer or dealership etc.
The next step is the technical inspection of your vehicle at an official CITV inspection centre to receive form 112 (the carbon dioxide emissions rate determines the tax rate). This test is similar to what we know as an MOT in the United Kingdom or an ITV in Spain. An older car with faults is liable to fail this roadworthiness test.
The final step is to have your vehicle registered with the Conservatoria do Registo Automovel. Now you can use our online form to compare prices to get you the best deal for Portuguese car insurance.
What to do in a Car Accident in Portugal?
Firstly, be prepared. Make sure you have the details of your car insurance company in the vehicle in a place that you will remember in an accident, the glove box is the obvious place as if you have an accident you may be in shock and unable to think coherently or clearly.
Have a safety kit in your car at all times. This must include a yellow reflective jacket which you must put on in the event of an accident as well as a warning triangle which you would put behind your car as an advance warning to other motorists so they see you with plenty of time to spare.
Now call the Portuguese police (dial 112) from either your phone or an emergency call box if on a motorway. Do not move the car as the police need to attend the scene before this can happen.
Take photos as evidence to help your insurance company.
Fill out the DAAA form (Declaração Amigável de Acidente Automóvel) and get anyone else involved in the accident to sign and agree the version of events. Include any witnesses to the accident as this will greatly help the insurance companies assign responsibility and blame for the cause of the accident. The DAAA form is a friendly agreement where you and other’s involved are in agreement with the facts or events that took place.
If these facts or events are disputed by others involved in the accident instead fill out the Folheto Participação de Sinistro (Não Amigável) (Non-Friendly Accident Claim Form) and forward it to the insurer.
Contact the insurance company within a maximum of 7 days and follow their instructions. Depending on your policy, you may be entitled to a temporary courtesy car while your claim is being processed. You are now bound to have to suffer the payment of an excess on your policy so carefully consider this amount when taking out your insurance. Generally, the higher the excess, the lower your premiums but in the event of an accident, could you afford the high excess? It is better to consider these things now so you are prepared in the future.