On July 22, 2025, the reform of the Law on Civil Liability and Insurance in the Circulation of Motor Vehicles was approved, aligning it with European Directive 2021/2118. Its objective is to expand 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 must now be insured?
One of the main changes is the expansion of the scope of mandatory insurance:
- Agricultural and industrial vehicles, previously exempt.
- PMVs such as electric scooters or electric bicycles that exceed certain limits (speed or weight).
- Vehicles capable of moving, even if they do not circulate 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 mobility, which broadens its application.
Improved rights for victims
The new law also strengthens the rights of those involved in an accident:
- Psychological assistance for victims’ families (6-12 months).
- Home rehabilitation from the first 14 hours.
- This includes accidents in private spaces or with stopped vehicles.
Insurance Guarantee Fund (FGS)
The scope of the Insurance Guarantee Fund (FGS) is expanded to cover accidents caused by uninsured or unidentified vehicles, even on private land. This change is key to ensuring compensation for victims, regardless of the condition or whereabouts of the vehicle involved.
Changes in Compensation
The compensation system is also being updated to make it more fair and transparent:
- Compensation will be adjusted annually to the CPI, ensuring that it maintains its real value over time.
- Medical procedures are being simplified, and the use of out-of-court mechanisms is being promoted to expedite compensation processes.
New Requirements for Insurers
The regulations impose additional obligations on insurance companies:
- Updated digital registration of policies.
- Clearer communication of coverage and exclusions, promoting transparency.
Sanctions and Administrative Oversight
Although a six-month adaptation period without sanctions is granted, after that period, authorities will be able to apply automatic sanctions, thanks to the cross-referencing of data with the digital registry of policies. This will allow for greater efficiency in monitoring compliance with the law.
Expected Economic and Social Impact
This reform not only improves road safety, but also has positive effects for society as a whole:
- Reduction in litigation and legal conflicts.
- Greater legal certainty for victims, drivers, and insurers.
- Better coverage for vulnerable groups, such as cyclists and pedestrians.
The new law will come into force upon publication in the Official State Gazette (BOE), allowing six months for adaptation and setting January 2, 2026, as the deadline for registering vehicle registrations. This reform not only updates Spanish regulations to the new times, but also seeks to strengthen the protection of individuals, ensure greater transparency, and promote road safety comprehensively.
Insurance sector companies, such as Coyfer, are already working to support their clients in this process. From advice to the purchase of the appropriate insurance, they offer a service based on trust, humane treatment, and commitment to people—values that are more important than ever in this new scenario.
| Field | Previous situation | Nova changes (2025) |
| Scope of compulsory insurance | Only motor vehicles registered in public circulation. | This includes agricultural, industrial and some heavy goods vehicles. Also vehicles not used for public use. |
| Personal Mobility Vehicles (VMP) | Generally, exempt. | Compulsory if they exceed 25 km / h or weigh more than 25 kg and exceed 14 km / h. |
| Assistance to victims | Psychological assistance not provided. | 6-12 months of psychological assistance for family members. Early home rehabilitation. |
| Definition of “circulation fact” | Limited to public roads. | It is extended to private uses or even with a detained vehicle. |
| MOT and insurance | ITV was not mandatory to take out insurance. | Mandatory ITV to take out insurance (except temporary policies). |
| indemnities | Static, without adjustment for inflation. | They are updated annually according to CPI. |
| Processing of claims | Long and judicial procedures. | Extrajudicial resolution is promoted and medical procedures are simplified. |
| Insurance Guarantee Fund (FGS) | Limited to accidents on the public road. | It also extends to private land and uninsured vehicles. |
| Obligations of insurers | Limited registration and communication. | Mandatory digital registration and more transparency in coverage. |
| Entry into force | N/A | One day after publication in the BOE. Adaptation until January 2, 2026. |