Third Party/Third Party Fire and Theft
The cheapest cover available is third party car insurance Spain. This is the legal minimum. As the name suggests this protects a third party in the event of a claim. For example, if you were to run in to the back of another vehicle and cause damage to that person’s vehicle. This type of policy covers your legal responsibilities to the other parties. Damage to your own vehicle is not covered.
In addition, this type of basic car insurance in Spain does not protect you if fire destroys your vehicle. Nor is it protected if someone steals it.
The next step up from this type of cover would be third party, fire and theft. This provides you with the legal minimum of cover plus the addition of protecting your vehicle in the event of a fire or if it is stolen.
An additional cover can be added to this called total loss. So it is possible to buy a policy called third party, fire, theft and total loss. The added benefit is that in the event that the vehicle is written-off by the insurance company they will make a payment to the insured.