Insurance in Portugal: what the law requires, what newcomers actually buy

Mandatory or optional: the whole list

• 4 compulsory covers: motor, building fire, workers' compensation, dangerous dogs
• 6,45 M€ / 1,3 M€ minimum motor liability per accident since 2022, confirmed by DL 26/2025
• ASF supervises insurers and intermediaries — check its register before paying anyone
• Visa: travel insurance with repatriation is on every consular list

How the market works

Portuguese insurers (Fidelidade, Ageas, Allianz, Generali Tranquilidade, Zurich, Lusitania, Liberty and the bank-owned insurers among others) sell through agents, brokers, banks and online. Prices are set per risk; foreign no-claims histories are increasingly accepted for motor cover if documented (the insurer issues a claims-history statement within 15 days of request under DL 26/2025). Policies renew automatically each year unless cancelled with the notice in the contract; a policy can be cancelled on sale of the car or the home.

Complaints go first to the insurer’s customer ombudsman, then to the ASF or to a consumer arbitration centre (CIMPAS for motor claims). Only insurers and intermediaries registered with the ASF may sell insurance in Portugal — the register is public.

What newcomers get wrong

• Driving a foreign-registered car on a foreign policy after becoming resident: once the car must be registered in Portugal, the foreign policy no longer satisfies the Portuguese obligation.
• Assuming the building’s fire policy covers the flat’s contents. It covers the walls; water damage to a neighbour, theft and contents need a multi-risk policy.
• Buying an international “expat” health plan that Portuguese private hospitals do not bill directly. A Portuguese policy with a hospital network is cheaper and simpler once you are resident.
• Letting the visa travel insurance lapse before the residence card and SNS registration exist — the gap is the moment an accident is uninsured.

Questions