Best Car Insurance in Portugal

Best Car Insurance in Portugal

Discover Portugal's Top Car Insurance Companies

Businessperson Reviewing Notes in Car
WRITTEN BYLorraine Giron
PUBLISHED ONNovember 30, 2023
Pena Palace Sintra Portugal
Source: Photo by Katia De Juan on Unsplash
Car Speedometer
Source: Photo by CHUTTERSNAP on Unsplash

Picture this: You’re cruising down the cobblestone streets of Lisbon, marveling at the scenic beauty around you. Suddenly, a mishap occurs – a fender bender, a scratch, or worse, an accident. This is where car insurance swoops in to save the day. It serves as a reliable ally, offering financial protection when unforeseen events occur.

Obtaining car insurance when renting a car in Portugal serves a dual purpose: it fulfills the legal obligation while providing essential practical benefits. It protects you from financial and legal problems when renting cars.

Let our guide help you pick the perfect insurance that fits your needs and budget.

Considerations in Choosing a Car Insurance Provider in Portugal

Like most European countries, Portugal requires a minimum level of car insurance coverage. This is known as third-party liability insurance, which protects you against any claims and legal liabilities if you cause damage to someone else’s property or injure someone while driving.

Driving without car insurance in Portugal can result in severe penalties and legal consequences. The Insurance and Pensions Funds Supervisory Authority (Autoridade de Supervisão de Seguros e Fundos de Pensões – ASF) regulates car insurance in Portugal.

Types of Car Insurance in Portugal

In Portugal, several types of coverage options are available to suit different needs and budgets. Understanding these options can help you in choosing the right insurance policy for your vehicle:

1. Third-Party Liability Insurance: This is the mandatory minimum coverage the law requires in Portugal.

  • Third-party liability insurance pays for damages to someone else’s car or property and their medical or injury bills.

2. Comprehensive Car Insurance: Also known as “triple coverage,” comprehensive insurance offers the highest level of protection for your vehicle.

  • It covers damage caused by accidents, theft, vandalism, and natural disasters like fire, flooding, or hail.
  • Comprehensive insurance also includes personal injury coverage for the insured person and damage to other vehicles or property. This insurance gives you financial security in various situations.

3. Supplementary Third-Party Insurance: Besides the mandatory third-party liability insurance, you can opt for supplementary coverage to enhance your protection. This type of insurance usually offers higher coverage limits and extended benefits, ensuring that you have sufficient financial protection in case of a major accident or other unforeseen events.

4. Additional Insurance Options: Some insurance providers in Portugal offer additional insurance options to add to your policy for extra coverage. These options may include roadside assistance, which provides help in case of breakdowns or emergencies, and rental car coverage, which ensures you have a replacement vehicle while your car is being repaired. These additional benefits can greatly enhance your driving experience and provide you with added convenience and peace of mind on the road.

  • Roadside Assistance:

No one wants to be stranded at the side of the road with a flat tire, a dead battery, or any other unexpected car trouble. That’s where roadside assistance comes in.

Roadside assistance is a service provided by insurance companies that offers immediate help when your vehicle breaks down. It typically includes services like towing, jump-starting a dead battery, changing a flat tire, or providing fuel if you run out.

When choosing the right type of car insurance in Portugal, consider factors such as your budget, the value of your vehicle, and your personal needs and preferences. Comparing different insurance providers and their coverage options can help you find the best policy that offers the right level of protection at a competitive price.

Factors to Consider When Looking for a Suitable Policy

When it comes to choosing car insurance in Portugal, here are some important factors to keep in mind:

1. Insurance Coverage: You have two main options: comprehensive insurance and third-party insurance. Comprehensive insurance will cover both your own vehicle and any damage caused to third-party vehicles, while third-party insurance only covers damage to other vehicles. Consider factors like the age and value of your car and your driving habits to determine the appropriate level of coverage.

2. Additional Benefits: Look for insurance policies that offer additional benefits such as roadside assistance, replacement vehicles, and coverage for vehicle damage and bodily injuries. These extras can provide added peace of mind and save you from unexpected expenses in the event of an accident or breakdown.

3. Cost: Comparing prices is essential when looking for car insurance. Different insurance providers may offer competitive prices, and it’s important to evaluate the coverage they provide in relation to the cost. Consider the premium payments, deductibles, and any discounts or promotions that may be available.

4. Customer Service: Choose an insurance company with a reputation for excellent customer service. You want to ensure that the company will be responsive and supportive in case of an accident or when making a claim. Look for companies that have positive customer reviews and provide easy-to-reach customer service channels.

5. Legal Requirements: Familiarize yourself with the legal requirements for car insurance in Portugal. The minimum coverage mandated by law includes third-party liability insurance. However, it’s important to determine if you need additional coverage based on your specific circumstances and preferences.

6. Expat Considerations: If you are an expat living in Portugal, it’s important to ensure that the insurance company you choose caters to the needs of expatriates. Look for policies that provide all necessary documentation in English and have English-speaking customer service representatives who can assist you.

7. Reputation and Stability: Consider the reputation and stability of the insurance company. Look for providers with a proven track record and positive reviews from customers. Choosing a company you can trust to handle your insurance claims efficiently and effectively is crucial.

8. Ease of Access: Evaluate how easy it is to access the insurance provider’s services. Consider factors such as the availability of an online quote or purchasing process, the ease of filing claims, and the accessibility of customer support channels. A user-friendly and efficient process can save you time and hassle in the long run.

Using Foreign Car Insurance in Portugal

Yes, it is possible to use foreign car insurance in Portugal, but there are some important considerations to keep in mind:

  • If you are a visitor to Portugal from another country and plan to drive your own car, you can use your existing foreign car insurance. However, confirm with your insurance provider whether your policy extends coverage to Portugal and for how long is best.
  • Note that foreign car insurance policies may not meet the minimum coverage requirements of Portuguese law. In Portugal, all vehicles must have Compulsory Third Party Liability Insurance (Seguro de Responsabilidade Civil) to cover damages or injuries caused to third parties.
  • You can use car insurance from other European Union countries in Portugal. Additionally, countries with the Green Card system can use their home coverage in Portugal.

What are the Best Car Insurance Providers in Portugal for 2024?

Considering over 70 insurance companies operating in Portugal, selecting the right provider can be time-consuming. We made a concise list of the top main firms, highlighting their respective benefits for your convenience:

Liberty Seguros

Liberty Seguros is part of the Liberty Mutual Insurance Group (LMIG), one of the largest non-life insurers in the United States. As a well-known insurance provider in Portugal, they offer a range of insurance policies for home, leisure, personal, health, and expatriates.

  • While Liberty Sobre Rodas or Liberty on Wheels provides vital protection, there are additional coverages that you may consider equally essential:
Main CoverageAdditional Coverages
Main CoverageAdditional Coverages
Civil responsibility Legal Protection Travel Assistance OccupantsGlass Breakage Replacement Vehicle Replacement Vehicle for Maintenance Personal Protection – in the event of a robbery, it replaces personal documents (up to €150 per claim), repair or replacement of locks in the event of a home invasion (up to €250 per claim), and fraudulent use of a credit card (up to €150 per card) Own damage

Fidelidade

A company that combines the wisdom and experience gained from 200 years of industry experience with a drive to embrace the future – that’s Fidelidade for you. As a market leader in the life and non-life segments, it aims to protect the future of families, companies, and Portugal itself.

Fidelidade ensures that there’s insurance for everyone with its Auto 1, 2, 3, and 4 policies.

  • Efficiency: You can report your Auto Claim and receive support online through MyFidelidade Customer Area.
  • Sustainability: Fidelidade offers specific coverage for electric cars, whether 100% electric or plug-in hybrid.
Auto 1Auto 2Auto 3Auto 4
Looking for Mandatory car insurance with a lower premium? This policy also has driver protection and roadside assistance coverage.​For the budget-conscious, this Mandatory car insurance also has a Legal Protection and Isolated Glass Breaking Option.This policy includes car protection in the event of theft, fire, storms, or vandalism.For maximum safety and comfort, you may opt to choose this and the most comprehensive policy. It includes the option of a replacement vehicle in case of an accident or breakdown If you have a new or pre-owned car, this can protect its Purchase Value and the vehicle’s Secure Debt.

Santander

As a subsidiary of Banco Santander, Santander Portugal benefits from its parent company’s global expertise, resources, and stability. It has established itself as a trusted banking partner, offering various financial products and services.

  • Santander’s Auto Protection Insurance (Seguro Automovel) includes liability coverage and roadside assistance in its policies:
StandardPlusPrestige
Looking for insurance with the coverage required by civil liability law only? Then this option is for you.Optional civil liability, driver/insured accidents, Isolated glass breakage 4 optional coverages (glass breakage, theft or theft of use, fire, lightning explosion, and catastrophic risks)Protection in the event of shock, collision, or rollover, New value (only for vehicles up to 12 months old) 2 optional coverages (malicious acts and replacement vehicle up to 30 days)
  • Other services include Travel Assistance, Legal Protection, Replacement Vehicles, Online Assistance from your cell phone, Automatic Geolocation of the vehicle and tracking, and Digital Inspection Services.

Allianz Portugal

Allianz is a prominent financial institution globally, and its Portuguese branch is no exception. Its Seguro Frota Automovel offers 24/7 assistance, coverage flexibility, and easy management.

  • Workshop Network: When faced with accidents, you can count on Allianz’s workshops located across various parts of the country. It also has partners whose expertise lies in glass repair and replacement.
  • Flexible Coverages:
  • Civil responsibility
  • Death or Permanent Disability
  • Treatment Expenses
  • Funeral Expenses
  • Travel Assistance and Legal Protection
  • Replacement Vehicle due to Breakdown
  • Isolated Glass Breakage
  • Deprivation of Use Due to Claim
  • Replacement Vehicle
  • Luggage
  • Theft or Robbery
  • Fire, Lightning Strikes, and Explosion
  • Natural Phenomena and Aircraft Crashes
  • Shock, Collision, or Rollover
  • Acts of Vandalism

GED

GED Expat Insurance Portugal is the go-to specialized insurance provider for expatriates living in Portugal. With an understanding of the challenges faced by international residents, GED Expat Insurance Portugal offers flexible insurance solutions tailored to their specific circumstances.

  • Competitive Price: The base or mandatory 3rd party insurance starts at €13 per month.
  • Flexibility: It also covers commercial transport, agricultural vehicles, classic cars, and motorbikes.
BaseExtraFully Comp
Civil Liability Road Assistance Broken WindowsFire & Explosion Theft or Robbery Natural Disaster ProtectionTotal Loss Protection Courtesy Car Driver Protection

Get protected while driving in Portugal

Whether your priority is comprehensive coverage, competitive pricing, or excellent customer service, there is the ideal insurance policy for you. Protect your investment, and drive with confidence in Portuguese roads.

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