On 22 July 2025, the reform of the Ley sobre responsabilidad civil y seguro en la circulación de vehículos a motor (Spanish Motor Liability Insurance Act) was approved, aligning it with European Directive 2021/2118. Its aims: to extend protection for victims and drivers, improve transparency in the sector and strengthen legal certainty.
Below, we explain the main changes introduced by this legislation and how they may affect you.
Which vehicles will need to be insured from now on?
One of the main changes is the broader scope of compulsory insurance:
- Agricultural and industrial vehicles previously exempt.
- PMVs such as e-scooters or e-bikes that exceed certain limits (speed or weight).
- Vehicles capable of movement even if not used on public roads.
PMVs that do not exceed the established limits are exempt
New definition of “vehicle”
It no longer depends solely on technical or registration criteria. It is now based on the capacity for movement, which broadens its scope.
Improved rights for victims
The new law also strengthens the rights of people involved in an accident:
- Psychological support for victims' families (6-12 months).
- Home rehabilitation from the first 14 hours.
- Includes accidents on private premises or involving stationary vehicles.
Insurance Guarantee Fund (FGS)
The role of the Insurance Guarantee Fund (FGS) is extended to cover accidents caused by uninsured or unidentified vehicles, even on private land. This change is key to ensuring that victims are compensated, regardless of the status or whereabouts of the vehicle responsible.
Changes to compensation
The compensation system is also being updated to make it fairer and more transparent:
- Compensation amounts will be adjusted annually in line with the CPI, ensuring they retain their real value over time.
- Medical procedures are simplified and out-of-court mechanisms are encouraged to speed up compensation processes.
New requirements for insurers
The regulations impose additional obligations on insurance companies:
- Up-to-date digital register of policies.
- Clearer communication of cover and exclusions, promoting transparency.
Penalties and administrative oversight
Although a six-month adaptation period without penalties is granted, after that the authorities will be able to impose penalties automatically by cross-checking data against the digital policy register. This will make enforcement of the law more efficient.
Expected economic and social impact
This reform not only improves road safety but also has positive effects for society as a whole:
- Fewer lawsuits and legal disputes.
- Greater legal certainty for victims, drivers and insurers.
- Better cover for vulnerable road users, such as cyclists and pedestrians.
The new law will come into force following its publication in the BOE (Spain's Official State Gazette), allowing 6 months for adaptation and setting 2 January 2026 as the deadline for registering PMVs. This reform not only brings Spanish legislation up to date but also seeks to strengthen personal protection, ensure greater transparency and promote road safety across the board.
Companies in the insurance sector, such as Coyfer, are already working to support their clients through this process. From advice to taking out the right policy, they offer a service built on trust, personal attention and a commitment to people, values that matter more than ever in this new landscape.
| Scope | Previous Situation | New Reform (2025) |
|---|---|---|
| Scope of compulsory insurance | Only registered motor vehicles on public roads. | Includes agricultural and industrial vehicles and some PMVs, as well as vehicles not used on public roads. |
| Personal Mobility Vehicles (PMVs) | Generally exempt. | Mandatory if they exceed 25 km/h, or weigh over 25 kg and exceed 14 km/h. |
| Victim support | No provision for psychological support. | 6-12 months of psychological support for families. Early home-based rehabilitation. |
| Definition of “use of a vehicle” | Limited to public roads. | Extended to private use and even to stationary vehicles. |
| MOT (ITV) and insurance | An MOT (ITV) was not required to take out insurance. | Valid MOT (ITV) required to take out insurance (except temporary policies). |
| Compensation | Fixed, with no adjustment for inflation. | Updated annually in line with the CPI. |
| Claims handling | Lengthy procedures often ending in court. | Out-of-court settlement is encouraged and medical procedures are simplified. |
| Insurance Guarantee Fund (FGS) | Limited to accidents on public roads. | Also extended to private land and uninsured vehicles. |
| Insurer obligations | Limited registration and reporting. | Mandatory digital register and greater transparency in cover. |
| Entry into force | N/A | The day after publication in the BOE. Adaptation period until 2 January 2026. |
