New in Portugal? Here’s How Car Insurance Works for Expats

Thinking of buying a car in Portugal as a foreigner? Or maybe you already have – and now need to insure it? Understanding car insurance as an expat can feel confusing at first, especially if you’re not fluent in Portuguese.

At Nordic Drive, we help expats every day get safely on the road – including choosing the right insurance. Here’s a simple guide to how car insurance works in Portugal and what to be aware of as a foreign buyer.

Is car insurance mandatory in Portugal?

Yes – car insurance is legally required in Portugal.

The minimum requirement is third-party liability insurance (seguro de responsabilidade civil), which covers damage you cause to others – people, vehicles, or property. Without this, you’re not allowed to drive on public roads.

What types of car insurance are available in Portugal?

Besides basic liability, you can choose from two main types of coverage:

1. Extended Third-Party Insurance (seguro contra terceiros alargado)

Covers more than just liability:

    •    Theft and fire

    •    Broken glass

    •    Roadside assistance

    •    Natural events like storms or floods

2. Full Coverage / Comprehensive Insurance (seguro contra todos os riscos)

Offers the highest level of protection, including:

    •    Damage to your own car (even if it’s your fault)

    •    Vandalism and parking accidents

    •    Often comes with low deductibles and added services

Recommended if your car is newer or of higher value.

How to choose the right insurer as an expat

There are many insurance companies in Portugal. Here’s what to keep in mind:

1. Language support

Look for providers that offer service in English (or Danish, if available). It makes handling claims and questions much easier.

2. Compare prices and coverage

Use comparison tools or ask your car dealer for help. Prices vary based on car model, driver profile, location, and insurance type.

3. Expats welcome

Some insurers require a Portuguese license or proof of residency – others are more flexible with international documents.

4. Understand the excess and extras

Check the deductible, availability of rental cars after accidents, and if roadside assistance is included.

What documents do you need to get insured?

Usually, you’ll need:

    •    Your Portuguese NIF number (tax ID)

    •    A valid address in Portugal

    •    Vehicle registration details

    •    A driving license (Portuguese or international)

At Nordic Drive, we work with trusted partners who are used to dealing with expats – and we’ll help you every step of the way.

How much does car insurance cost in Portugal?

Costs vary, but here’s a general guide:

    •    Third-party only: €150–€300/year

    •    Comprehensive: €400–€900/year (depending on the car and your profile)

Older or lower-value cars and experienced drivers usually pay less.

Ready to drive with peace of mind?

Whether you’ve already bought a car or are still exploring your options, Nordic Drive is your trusted partner in Lisbon – from choosing the right electric car to sorting out insurance and registration.

Got questions about car insurance in Portugal?

Contact us today – we’re happy to help you drive with confidence.