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Getting Car Insurance in Portugal

The compulsory third party cover, the 6.45 million euro minimum, what happens if you drive uninsured, and the guarantee fund for uninsured drivers.

Getting Car Insurance in Portugal

Last verified: September 2026.

Who this is for

  • Residents who own or are buying a car or motorbike registered in Portugal.
  • Newcomers bringing a car from abroad and registering it here.
  • Drivers with a no-claims record from another country who want it counted.

Not for you if: you want the rules of the road, licences, or speed limits. Read Driving in Portugal instead.

Updated September 2026. New general policy conditions for compulsory motor insurance now apply. Insurers must also treat a claims history from another EU country the same as a Portuguese one.

Every motor vehicle kept in Portugal must have third-party liability insurance (seguro de responsabilidade civil automóvel), even when it is parked. This compulsory cover pays for injury and damage your vehicle causes to other people. It must cover at least €6,450,000 per accident for injuries and €1,300,000 for property damage. Anything more, such as damage to your own car, is optional. Driving without insurance brings a fine of €500 to €2,500, a driving ban, and personal liability for every euro of damage.

What the law requires

The rule applies to the vehicle, not the trip. A car or motorbike with Portuguese plates may only be on a public road if it is insured. That includes when it is parked in the street.

The compulsory cover:

  • Pays for injuries and damage your vehicle causes to other people, including other drivers, passengers, pedestrians, and cyclists.
  • Does not pay for injuries to the driver who caused the accident.
  • Does not pay for damage to your own car.
  • Covers you in all countries that belong to the green card system, including every EU and EEA country, for the same premium.

The legal minimum is €6,450,000 per accident for injuries and €1,300,000 per accident for property damage. These figures are reviewed every five years in line with EU inflation. Every policy sold in Portugal already meets them, so you do not need to check.

The types of cover

Most policies build on the compulsory cover. Think of it as three levels:

  1. Third-party only. The legal minimum and the cheapest option. Common for older or low-value cars.
  2. Third-party plus extras. The compulsory cover with add-ons you choose. Typical extras are fire and theft, glass breakage, storms and vandalism, roadside assistance, a replacement car, and personal accident cover for the driver.
  3. Own damage (danos próprios). Pays for damage to your own car, even when the accident is your fault or no one else is involved. It usually comes with an excess (franquia), the part of each claim you pay yourself. Worth it for newer cars.

If you buy a car on credit or lease, the lender will usually require own damage cover.

How to take out a policy

  1. Gather your documents. You need: - The vehicle registration certificate (Documento Único Automóvel). - Your driving licence. - Your tax number (NIF). - A Portuguese address. - A claims history statement from your previous insurer, if you have one.
  2. Get quotes. Ask insurers directly, or use an insurance intermediary (mediador de seguros). Intermediaries must be registered with the insurance regulator, ASF.
  3. Compare more than the price. Check the excess, the roadside assistance distance, whether a replacement car is included, and the limits on each extra.
  4. Pay the premium. Cover starts only once you pay. The insurer then gives you proof of insurance.
  5. Keep the proof with you. This is a green card certificate, a temporary certificate, or a payment receipt. The green card must reach you within 60 days of taking out the policy.

Policies usually renew each year. Put the renewal date in your diary if you want to switch.

Using your claims history from abroad

Premiums in Portugal follow a bonus-malus system. Your price falls each year you drive without an at-fault claim, and rises after one.

If you drove in another country, ask your old insurer for a claims history statement. It should cover up to the last five years. EU insurers issue it on a standard EU form.

The law now protects newcomers in three ways:

  • Equal treatment. An insurer that uses claims histories to set prices must treat one from another EU country the same as a Portuguese one, including for discounts.
  • No nationality penalty. An insurer cannot charge you more because of your nationality or where you lived before.
  • Published policy. Each insurer must publish how it uses claims history statements when setting prices.

A statement from outside the EU, such as from the UK or the United States, is not covered by these rules. Many insurers still accept one, so ask.

A Portuguese insurer must give you your claims history within 15 days of your request. If the insurer ends your policy, it must remind you of this right at least 30 days before.

Proof of insurance and roadside checks

Portugal no longer uses a windscreen insurance sticker. Only vehicles exempt from insurance, such as some state vehicles, still display one.

The police (PSP and GNR) check insurance at the roadside and can ask to see your proof of insurance. If you stop paying, the policy lapses and your car is uninsured, even though nothing on the car shows it.

Driving outside Portugal

Your Portuguese policy covers you in every country of the green card system for the same premium. Within the EU and EEA, you do not need to show a green card at the border. For countries outside the EU, such as Morocco, check your green card lists the country before you travel.

If you drive without insurance

The penalties are designed to cost far more than a policy. For a car or motorbike, driving without compulsory insurance is a serious (grave) offence. It brings:

The bigger risk is the cost of an accident. If you cause one without insurance, the Motor Guarantee Fund pays the victims and then recovers the full amount from you and the vehicle's owner.

The Motor Guarantee Fund

The Motor Guarantee Fund (Fundo de Garantia Automóvel, FGA) is run by the insurance regulator, ASF. It compensates accident victims when:

  • The vehicle at fault had no insurance.
  • The vehicle at fault was never identified, for example after a hit and run.
  • The insurer of the vehicle at fault has gone bust.

If you are the victim, contact the FGA through the ASF. If the driver at fault had no insurance, the FGA will pursue them for what it pays out.

Selling the car or bringing one from abroad

If you sell your car, your policy ends at midnight on the day of the sale. Tell your insurer in writing within 24 hours. You can move the policy to a new car instead. See Buying a Used Car in Portugal.

If your policy ends and you do not insure the car again, the vehicle registration authority (IMT) can ask you to hand in the registration certificate within 15 days. Failing to do so brings a fine of €500 to €2,500 for a car or motorbike.

If you bring a car from abroad, your foreign policy covers it while it still has foreign plates. Once the car gets Portuguese plates, it needs a policy for a Portuguese-registered car from the day of registration. See Importing a Car to Portugal.

If you have a problem with your insurer

  1. Complain to the insurer first, in writing. Every insurer must have a complaints service.
  2. If you are not satisfied, complain to the ASF, the insurance regulator, on its consumer portal.
  3. You can also use the insurer's official complaints book. See Filing a Consumer Complaint in Portugal (Livro de Reclamações).

Sources

This guide is written from official Portuguese and EU sources and, for prices and contact details, the providers' own websites.

Last verified September 2026. Rules and fees change; check the official source before acting.

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