Car insurance in Portugal

No, a vehicle registered in UK cannot be insured in Portugal. We recommend you quickly switch registration as your English insurance is valid for travel abroad only up to 60 days (90 days with certain companies). In any case, INOV EXPAT can help you find temporary insurance (up to 3 months) for a vehicle with English plates in Portugal as long as the owner can provide proof of initiating the registration switch process with documents from the Portuguese administration (IMMT).

It’s a rather long process as various administrative authorities intervene (vehicle inspection, IMTT, customs...): private service providers can manage all these procedures for you at a cost of around €500 After gathering all the documents proving legal purchase of the vehicle in UK (invoice, declaration of purchase, EU conformity certificate issued by the manufacturer or dealership, grey card...), you must complete and submit the IMTT (Portuguese Institute for Mobility and Ground Transport) Form 9 at an office or online. Then, your vehicle must pass a technical inspection at an official inspection centre (CITV) to receive form 112 (which indicates the carbon dioxide emissions rate that will determine the tax rate). Within 20 days after moving to Portugal, you must declare your car with the Portuguese customs authorities (Alfândega) to receive a DAV (Declaração Aduaneira do Veiculo) declaration certificate which is necessary for the registration application. That is when you can pay the tax on vehicles (ISV) through customs. It must be paid every year. With the DAV, the original documents authenticated by the Portuguese customs authorities and forms 9 and 112, you can then apply for registration through the IMTT and then register your vehicle with the Conservatoria do Registo Automovel.

If you’re involved in an accident in Portugal, the procedures are basically the same as in UK. The most important thing is to put on the yellow reflective jacket if you get out of the vehicle, set up the warning triangle and, of course, have your insurance up to date. First of all, you must call the police using one of the emergency call boxes or by calling 112 (European emergency number) which is accessible by all GSM irrespective of the operator. In fact, in Portugal, no vehicle involved in an accident may be moved before the police arrive on the scene. Then, depending on the time of day, you may either contact us or the insurance company directly. Everything will be done to send you a loaner vehicle or taxi as quickly as possible... Don’t forget to complete the “Declaração Amigável de Acidente Automóvel” (DAAA) which is the amicable record of an accident which must be completed and detailed with the identities of the drivers involved in the accident, insurance details and any witnesses. You must send us this declaration as quickly as possible to begin the handling and indemnity process.

To file a claim following an accident, call us during business hours or the number for your insurance company as found on your policy. You may call that number 24 hours a day.

Yes. Every vehicle driven on Portuguese roads must be insured by law. At a minimum, compulsory civil liability insurance (Responsabilidade Civil Obrigatória : RCO) is required, covering bodily injury and property damage caused to others in the event of an accident. Driving without insurance is strictly prohibited and can result in severe penalties (heavy fines, vehicle immobilisation, impoundment, and even criminal proceedings). This obligation applies to both residents and foreign visitors, and you must be able to present a valid insurance certificate if stopped by police. Even with a vehicle registered abroad, you must regularise your situation (insurance and registration) once you establish yourself in Portugal.

Note: if your vehicle is registered but not being driven, it may still be subject to the insurance obligation. See the next question.

In Portugal, a registered vehicle (matriculado e em circulação) remains subject in principle to the insurance obligation, even if it is not being used, as it can still give rise to liability (while parked, in the event of fire, damage to third parties, etc.). If you are not using your vehicle for an extended period, you may consider applying for a suspension or withdrawal of the registration plate with the IMT (Instituto da Mobilidade e dos Transportes) to be exempt from certain legal obligations. The conditions and process depend on your specific situation and the status of the vehicle, it is advisable to verify the procedure applicable to your case.

The right choice depends on your vehicle's value, your profile, your budget, and how you use your car.

Third-party only (responsabilidade civil) is the legal minimum: it covers civil liability (damage caused to third parties) but provides little or no cover for damage to your own vehicle in a fault accident.

Extended third-party cover typically adds theft, fire, glass breakage, and breakdown assistance (subject to policy terms).

Comprehensive insurance (todos os riscos) also covers damage to your own vehicle, including in fault accidents, with or without an excess depending on the option chosen.

As an expat, also check the claims handling process, multilingual support, and whether your foreign no-claims bonus will be recognised.

Yes, it may work as a temporary solution for a short stay, but it does not replace local insurance if you settle in Portugal long-term. Once your vehicle is habitually based in Portugal and you establish residency there, you must regularise its situation (registration and insurance) to remain compliant and avoid complications in the event of a police check or a claim.

If in doubt, a specialist broker can help clarify your situation and choose the most suitable solution.

Yes, if you settle in Portugal permanently and your vehicle is habitually based there. The process depends on your situation (vehicle already registered within the EU or outside the EU, change of residence, applicable taxes) and may involve several steps: obtaining a certificate of conformity (if required), passing the periodic technical inspection (IPO : Inspeção Periódica Obrigatória) if applicable, paying the relevant taxes, in particular ISV (Imposto Sobre Veículos) and IUC (Imposto Único de Circulação), providing the required identity documents (a NIF : Número de Identificação Fiscal is generally required) along with the vehicle's documents.

The process is handled through the IMT or a Conservatória do Registo Automóvel. The applicable deadlines and conditions for re-registering a foreign vehicle vary depending on your situation (EU or non-EU citizen, tax status, etc.) and should be verified for your specific case. To avoid errors and unnecessary delays, it is strongly recommended to check the exact procedure that applies to you.

Third-party insurance (responsabilidade civil) is the minimum legal cover: it covers liability for property damage and bodily injury caused to third parties in an accident. It does not cover damage to your own vehicle if you are at fault.

Extended third-party cover generally adds guarantees such as theft, fire, glass breakage, and roadside assistance (subject to policy terms), which may be appropriate for mid-range vehicles.

Comprehensive insurance (todos os riscos) is the most complete option: it also covers damage to your own vehicle, including in fault accidents, with or without an excess depending on the option chosen. It is often recommended for new or high-value vehicles, but typically comes with a higher premium.

Note: civil liability covers passengers as third parties, but cover for the driver's own injuries (where the driver is at fault) is usually provided under a specific guarantee. If you travel frequently, also check the assistance cover and the limits of coverage outside Portugal under your policy.

The compulsory civil liability covers property damage and bodily injury caused to third parties with your vehicle, including passengers. However, it does not cover damage to your own vehicle or, as a general rule, injuries suffered by the driver at fault. To improve your protection, additional guarantees can be added depending on your policy (own vehicle damage, driver protection, etc.).

The excess is the amount you pay yourself in the event of a covered claim. For example, if you have a €300 excess and repairs cost €1,000, you pay the first €300 and the insurer covers the remainder, in accordance with the policy terms.

Insurance with an excess is generally cheaper, but requires an out-of-pocket payment when a claim occurs. Policies without an excess offer greater peace of mind but typically come with a higher premium. The right choice depends mainly on your budget, how frequently you drive, and your tolerance for risk.

The price varies depending on the driver's age, insurance history, area of residence, type of vehicle, and level of cover chosen. As a rough guide, an adult driver with a standard vehicle might pay around €200–€400 per year for third-party cover, €250–€600 for extended third-party, and €400–€1,200 for comprehensive insurance.

Young drivers and those with no insurance history in Portugal often pay more. Some companies also offer discounts when you bundle several policies (car + home, or multiple vehicles) with the same insurer, subject to their terms and conditions.

As a general rule, the compulsory civil liability covers damage caused to third parties, but does not cover injuries suffered by the driver responsible for the accident. To be compensated for injuries, disability, or death, a specific driver accident guarantee (seguro de acidentes do condutor) is required, which can cover the driver even when they are at fault. Depending on the insurer, this guarantee may be included as standard or offered as an option, with varying limits and conditions, it is therefore recommended to check explicitly whether it is included and at what level.

The majority of car insurance policies in Portugal include roadside assistance covering breakdown recovery and towing to a garage. Depending on the policy, additional services may be included such as a replacement vehicle or accommodation and transport for the occupants.

Cover may be limited in terms of distance, territory, and conditions of intervention. For an expat, it is therefore important to check whether assistance is valid outside Portugal and which services are actually included in the event of an accident or vehicle immobilisation.

In the event of an accident, make the scene safe and check for any injured persons. If possible, complete a Declaração Amigável de Acidente Automóvel (DAAA) with the other driver, take photographs (vehicles, number plates, damage, road signs) and note down the contact details of any witnesses.

You must notify your insurer within 8 working days of the date of the accident (under Portuguese insurance law), unless otherwise stated in your policy.

Calling the police (GNR or PSP) is not compulsory in all cases, but is strongly recommended and sometimes essential, when there are injured persons, disagreement between the parties, refusal to sign the DAAA, a hit-and-run, or if the accident blocks traffic. These steps make for faster handling and reduce the risk of disputes.

Lending your vehicle depends on the terms of your policy. In Portugal, many insurance policies cover an occasional driver provided the person holds a valid driving licence and meets the insurer's criteria. In this case, it is not always necessary to declare a second driver, particularly when the person is over 25 to 28 years of age and has held a licence for more than 2–3 years, depending on the insurer and the policy.

However, if a person uses the vehicle regularly (as a habitual driver), it is strongly recommended to declare them. In the event of a claim, regular use by an undeclared driver may result in limited cover or an additional premium. If in doubt, it is best to check the exact conditions of your policy to avoid any unpleasant surprises.

As a general rule, theft and fire cover is included in extended third-party or comprehensive policies. A basic third-party policy does not usually include them.

It is therefore important to check whether these guarantees are included in your policy, along with their conditions (any excess, the value of compensation, obligations in the event of theft such as filing a police report, etc.). This can be particularly relevant if your vehicle is regularly parked on the street or in a higher-risk area.

It depends on your policy and the circumstances. Depending on the guarantees taken out, certain damage related to a collision with an animal, an impact with an object, or similar events may be covered, most often through own-damage guarantees (for example under comprehensive cover, or sometimes extended third-party, subject to policy terms). A basic third-party policy generally does not cover damage to your own vehicle.

The key is therefore to check the specific guarantee applicable (own damage, events covered, exclusions, and excess), particularly if you frequently drive in rural or forested areas (animals, falling branches, etc.).