Motor insurance prices hit an all-time high in Spain

Motor insurance in Spain has risen in price once again, setting a new all-time high in Spain. During the first quarter of 2025, the average cost of a car policy rose by 14% compared to the fourth quarter of 2024 and by 2.84% compared to the first quarter of 2024, which was the previous record.

The average premium crossed the psychological threshold of 1,000 euros for the first time in March, with all-risk insurance as the one with the highest price increase (19.63%).

By type, fully comprehensive insurances without deductibles led the rise once again, with a 19.63% quarter-on-quarter increase, while the year-on-year increase was more moderate, at 2.84%. Third-party insurance also rose considerably, with an increase of 12.58%.

However, insurance portal Kelisto said that it is important to put this data in context, as there was also an increase during the first quarter of last year, after which it slowly fell month by month.

Kelisto highlighted that this past March "broke the psychological threshold" of 1,000 euros, establishing the average cost of a car policy at 1,030.16 euros, with the most basic insurances (third-party) surpassing the threshold of 500 euros and establishing an average premium of 516.01 euros per year.

Kelisto.es spokesperson Javier Martínez said that the cost of car policies "has been falling slowly throughout 2024". "A slight rise at the beginning of 2025 was to be expected, given that the beginning of the year is always used by insurance companies to readjust costs, which makes the first quarter of the year a time of price increases," said Martínez. Despite this, he did acknowledge "the virulence of this new increase in prices, which breaks the records reached last year". This surge could destabilise the insurance market, which was expected to calm down in the coming months.

With this increase, people in Spain are paying 27 euros more per year on car insurance on average. Since most households (79%) have car insurance, this results in 395 million euros more being paid nationwide just in the first quarter of the year.