Insurance in Portugal

Insurance in Portugal: A Comprehensive Guide

Living or doing business in Portugal means understanding the country’s insurance landscape. Whether you’re an expat, retiree, student, tourist or foreign investor, you need to know which policies are mandatory, which are optional (but recommended), how to get them, and how to keep costs down. Portugal offers both public and private options for many risks (especially health), but in most cases you must carry at least minimal coverage. Below we cover health, car, home, travel, life, and business insurance – with practical details on providers, requirements, costs, claims, and even insider tips (“astuces”) from local sources.

• Health Insurance: In Portugal public healthcare (SNS) covers all legal residents for most treatments (now nearly free of charge). EU/EEA citizens can use the European Health Insurance Card (EHIC) or UK GHIC while visiting. Non-EU nationals (or any foreigners) typically must buy private coverage – especially to meet visa requirements (Schengen visa and visas like D7/D8/D9 require insurance covering ~€30,000 in medical costs)anchorless.io. Private plans (from Fidelidade, Médis, Allianz Care, Cigna Global, etc.) give faster access to specialists, cover dentistry/vision, and offer international benefits. Expats who work in Portugal pay into Social Security and can register for SNS care. You register by getting a NISS (Social Security number) then obtaining an SNS user number at your local health center (a “número de utente”). For example, once you have proof of 90 days’ residence from the local parish (freguesia), you can present it to the health center to get your SNS user number expatica.com. After that, routine care is fully covered (with modest co-pays for prescriptions). Private health plans typically cost extra (premiums vary by age/cover) but cover additional services (eye care, repatriation, etc.) and most fully cover hospitalization and specialists once your deductible is met. Some expats choose a high-deductible plan or only private coverage for specific needs. Tip: Check if premiums (especially health, life) are partially tax-deductible: you can deduct 15% of health insurance premiums up to €1,000 per year cgd.pt. (Be sure your insurer provides an annual tax statement.)

Car Insurance (Seguro Automóvel)

Third-Party Liability (“RC Auto”) is mandatory. Every vehicle on Portuguese roads must carry at least responsabilidade civil automóvel, which covers damage you cause to others’ persons and property. Driving without it is illegal. You buy it from any insurer (e.g. Fidelidade, Allianz, Liberty, Ageas, Tranquilidade, Zurich, etc.) and it’s usually the cheapest option. Most drivers also add optional covers:

• Comprehensive (Danos Próprios): Covers damage to your own car (collision, fire, theft, vandalism).

• Fire/Theft: Intermediate option covering just fire or theft, in addition to the mandatory liability.

• Add-ons: Glass breakage, natural disasters, personal injury (to driver), or roadside assistance.

Premiums vary widely based on driver age/experience, car make/model, location, no-claims bonus, and chosen deductibles. For a typical private car, annual premiums often run in the €150–€350 range viveurope.com. Young or new drivers (under 25), high-powered cars, or full coverage plans cost more; higher deductibles can reduce your premium. Insurers may offer “novos condutores” temporary add-ons for under-25s. Portugal operates a bonus-malus system: no-claim bonuses reduce your premium each year without accidents, but at-fault claims usually increase it (sometimes temporarily – if you remain claim-free afterwards, your bonus can rebound).

Required documents: To buy or renew car insurance you need your ID (passport or citizen card), valid driving license, vehicle registration (Documento Único Automóvel, DUA), fiscal number (NIF) and proof of address (e.g. rental contract). If you’re a new resident, you may initially use your home-country policy temporarily (especially if it has the Green Card for EU travel), but Portuguese law still requires a domestic policy. As soon as you settle, get local coverage.

Making a claim: After an accident, report to your insurer immediately (usually within 24–48 hours) with police report (if any), photos, and witness info. Insurance companies will guide you through damage estimates and repairs. For minor accidents in urban areas, many drivers simply exchange information and file a “Declaração Amigável de Acidente” (friendly accident form). Insurers often handle claims within weeks, reimbursing repairs or total loss value.

Examples/Comparisons: A simple table of car insurance types:

Key providers: The largest insurers all offer auto plans. For example, Fidelidade and Allianz are market leaders; Liberty Seguros and Ageas are popular for multi-line discounts; smaller international names (Zurich, RSA) also compete. Comparison sites (or DECO PROTESTE’s simulator) help find the best premium for your profile.

Home Insurance

Fire insurance is mandatory for most owners in condominiums (multi-unit buildings). By Portuguese Civil Code Art. 1429, any condo owner must have insurance covering fire and related risks (also known as “incêndio seguro”) that protects the building structure (and often common areas). Usually the condominium’s policies cover common areas and roofs, but each owner must insure their own unit. The insured amount must reflect the reconstruction cost of the structure (not market value or land) consumidor.asf.com.pt. Condominium trustees often insist on proof that each owner has an adequate policy. If you rent out property, fire insurance is generally required by mortgage contracts and is tax-deductible as a rental expense cgd.pt.

Multi-Risk (Multirriscos) insurance is optional but highly recommended. This package policy can cover: fire, storms/floods/earthquakes, vandalism/theft, plumbing leaks, liability (injuries to others on your premises), temporary accommodation costs if your home is uninhabitable, and legal protection. The exact coverage varies by insurer. In practice, a multirrisk policy includes basic fire coverage but adds all the above. It’s especially important for homeowners with valuable contents or properties. Insurers like Tranquilidade, AG Insurance, and the usual big firms (Fidelidade, Allianz, Ageas, Zurich, etc.) sell multirisk home plans.

Contents Insurance (Seguro de Recheio) protects your household possessions (furniture, electronics, jewelry) against theft, water damage, etc. This can be part of a multirisk policy or a separate add-on. Always inventory your valuables and ask for sufficient cover; losses are only covered up to the sum insured.

Premiums and Valuation: Premiums depend on the insured value and risk factors (construction type, location, safety features). As construction costs rise, insurers index your coverage via the ASF’s Índice de Edifícios. By law, fire insurance (and any mandatory portion of home insurance) must be updated annually; if the condo board doesn’t set a new value, use the ASF building index. For example, between 2020 and early 2025 this index rose over 40% idealista.pt. Insider tip: Make sure your capital segurado (sum insured) matches real reconstruction cost – if it’s too low, you’re underinsured; too high, you overpay. Unfortunately, many families pay surging premiums every year because the index climbs. If the index makes your premium “exageradíssimo” (exorbitantly high) with no extra benefit, you should revisit the declared value.

Tax treatment: Health and fire insurance premiums (for rentals) can be deducted on your IRS tax return, but multirisk/home and auto insurance premiums are NOT deductible. (Fire insurance for rented buildings is an exception in Schedule Fire.)

Claims: In case of damage, immediately notify your insurer in writing. Document all damage with photos and keep receipts/invoices. The insurer will inspect and settle losses up to the insured amounts. Note your deductible: choosing a higher deductible can greatly lower your premium, but you’ll pay more out-of-pocket in a claim.

Travel Insurance

For non-residents or short-term visitors, travel insurance is strongly advised – in fact, it’s required for visa applications. The Schengen zone (which includes Portugal) mandates travel policies with at least €30,000 in medical coverage. Good travel insurance typically covers emergency medical care, repatriation, luggage loss, and trip cancellations.

• EU/EEA/Swiss Citizens: If visiting Portugal from another EU country, you can use your European Health Insurance Card (EHIC/GHIC) for necessary state-provided care (free or low-cost). However, EHIC does not cover repatriation or non-emergency evacuations. Many tourists still buy travel insurance to cover accidents, theft, and private care.

• Non-EU Tourists: You must buy travel insurance (often a Schengen visa requirement) covering at least €30k for medical emergencies, plus luggage, trip delay, etc. Insurers like Allianz Global Assistance, World Nomads, and local brokers offer daily or multi-trip plans. Tip: Some premium credit cards include basic travel insurance (usually limited coverage) if you pay trip costs with the card. Always check what’s covered before traveling.

• Digital Nomads/Long-Stay Visitors: For nomad or work visas (D7/D8/D9), proof of travel/health insurance is required. Plans must be valid for all of Portugal. Many expats use international plans (e.g. April, Cigna Global) or local private health plans that specifically meet visa criteria.

• International Students: EU students use EHIC. Non-EU students should get a student travel/health plan. Some universities recommend specific insurers (e.g. ISICSeguro).

• Winter sports or specific coverage: If you plan skiing or adventure travel, ensure your policy covers those activities (many standard plans exclude high-risk sports).

Life Insurance

Life insurance (“seguro de vida”) is not compulsory, but it is a pillar of financial planning – especially if you have debts or dependents. Lenders often require life cover on mortgages: banks will ask you to insure the outstanding mortgage amount so that in case of your death (or critical disability) the loan is repaidanchorless.io. Some policies combine life and mortgage protection with disability cover.

Portuguese life policies come in various forms:

• Term Life (pure death benefit): Pays a lump sum to beneficiaries if the insured dies during the policy term.

• Mortgage Life Insurance: Often a term life tied to the mortgage balance, decreasing as you pay.

• Whole Life / Savings: These mix life cover with an investment component (unit-linked or endowment), building cash value over time.

• Specialized: Critical illness riders, income protection, or “Seguro para Invalidez Absoluta e Definitiva (IAD)” and “Invalidez Total e Permanente (ITP)” policies for disability.

Providers: Major insurers like Fidelidade, Ageas Portugal, Allianz, Tranquilidade, MetLife, Generali, MAPFRE, etc., all offer life plans. Each has its niche: for example, MetLife is known for straightforward term plans without medical exams under certain ages. Shopping around is wise, as insurers vary in how they price age or health factors.

Costs: Premiums depend on age, health, coverage amount, and policy type. Young non-smokers get very cheap term life rates, but premiums rise steeply with age. If you’re asked to provide a medical exam, consider applying early: once you have a policy, the premium is usually fixed for life (subject to indexation), so it’s better to lock in good rates when young and healthy.

Tax: Life insurance premiums (and personal accident insurance, under conditions) are partially tax-deductible – check your tax situation. And note: in Portugal, life insurance payouts to a nominated beneficiary are tax-free (they do not count as inheritance, but you should still report them for clarity).

Business and Professional Insurance

If you operate a business or employ people in Portugal, you face some mandatory policies:

• Work Accident Insurance: By law, anyone who employs workers must carry workplace accident insurance (“seguro de acidentes de trabalho”). This is also required for domestic workers. Self-employed professionals (recibos verdes) must also insure themselves against work accidents. This covers medical bills and benefits if a worker is injured on the job. Portuguese law even covers commuting accidents. Employers face heavy fines for non-compliance.

• Professional Liability Insurance: Certain professions (doctors, lawyers, architects, financial advisors, etc.) may be legally required to have liability cover for errors/omissions. Even if not mandatory, it’s prudent for any consultancy/service business.

• Commercial Auto Insurance: If you own company vehicles, the same rules apply (RC auto at minimum).

• Property and Business Interruption: If your business owns real estate or expensive equipment, consider multirisk property insurance (like home insurance for companies) and business interruption cover (loss of income if premises are unusable).

• Directors & Officers Insurance (D&O): Rarely mandatory, but small businesses sometimes get it to protect managers against lawsuits.

• Health Insurance for Employees: Not required by law, but many companies offer private health plans (seguro de saúde) as a benefit. This can be cost-effective (group rates) and tax-advantageous as a corporate expense.

Providers: Commercial/business insurance is offered by the same companies (Fidelidade, Ageas, Allianz, Liberty, etc.), often via brokers. Look for an English-speaking broker who can compare packages. Many insurers offer multirisk packages for SMEs.

Insider Tips and Cost-Saving “Astuces”

• Bundle and Compare: Many insurers give discounts if you combine multiple policies (car+home, or home+life, etc.). Use comparison sites or brokers (DECO PROTESTE, ComparaJá, or dedicated expat brokers) to shop around.

• Negotiate Deductibles: Agreeing to a higher deductible (“franquia”) can cut your premium significantly . For example, adding a €250 or €500 deductible on car or home insurance is often worth the small risk, especially if you’re a careful driver/homeowner.

• No-Claim Bonuses: Avoid small claims if possible. The no-claims discount can cut car premiums by 50% or more after a few years without accidents.

• Update Your Cover: Regularly review insured amounts. For home insurance, ensure your capital seguro equals the actual rebuild cost. Periodic revaluation avoids over- or under-insuring.

• Use EHIC/EHIC Wisely: EU residents in Portugal should keep their EHIC/GHIC updated; it covers emergencies even if you haven’t yet registered with SNS. However, this is only for temporary stays – for long-term (over 90 days) you should register for SNS/obtain NISS for full benefits.

• Digital Nomad Visa: If applying for the D8 nomad visa (or D7, D9), note the health insurance requirement. The visa consulate expects a travel/health plan valid in Portugal for at least the first year, covering €30,000+ of medical expenses. Get this early – even Brazilian sites advise it for nomads yohomobile.com.

• Tax Savings: Keep all insurance receipts. You must declare health insurance premiums in your IRS form (Anexo H) to claim the 15% deduction. If you’re a landlord, do the same for mandatory fire insurance on rentals. Remember: car insurance and multirisk home insurance are not deductible.

• SNS and Docs: Always keep your SNS user number (utente) card handy. At large hospitals, admission desks often ask it; if you arrived recently and didn’t get one, you can usually still be treated and pay later. For kids born in Portugal, register them for SNS early.

• Language: Many insurers have English-speaking services. Fidelidade and Allianz have dedicated expat lines. If you don’t speak Portuguese, seek an “English-friendly” broker or ask for translated policy summaries.

• Emergency Numbers: Remember 112 for medical/fire/police emergencies. For non-urgent SNS queries, use SNS24 (contact SNS at 808 24 24 24) or the SNS24 online portal.

FAQs

Q: Is health insurance mandatory for residents?
A: For EU/EEA/Swiss citizens, public SNS coverage is available as soon as you legally reside (after ~90 days), so no extra insurance is strictly mandatory. Non-EU residents generally must purchase private health insurance for their visa application. All residents (and visa holders) should either join SNS or have private cover; uninsured treatment is possible but must be paid on the spot.

Q: Can I use a European Health Card in Portugal?
A: Yes – for short stays, EU/EAA/Swiss visitors can use the EHIC/GHIC for state-provided care at SNS rates (often free). But once you become a resident (or for emergencies requiring repatriation), a full health insurance or SNS registration is needed.

Q: What if I’m an expat (non-EU) working here?
A: You’ll pay Social Security from your salary. Once you have your NISS, you register with SNS (usually with an SNS utente card from the health center). All employed persons automatically qualify for SNS coverage. Private insurance is optional but may be offered by your employer or needed for family members, dental care, etc.

Q: How do I claim on my insurance?
A: Read your policy for claims procedure. Typically, for accidents or damages you notify the insurer (online or phone) within the time limit (often 8 days for auto, 2 days for theft, etc.), file a written claim, and submit proof. The insurer might send an adjuster. It’s wise to document everything (photos, invoices, police report). Keep copies of claim forms and correspondence.

Q: Is home insurance mandatory if I rent?
A: Not by law, except that banks may require it if you financed the purchase. Landlords often mandate tenants to have “seguro de inquilino” (tenant’s liability insurance) to cover damage to the property. If you rent, check your contract – and consider getting tenant’s insurance to protect your personal belongings against theft or fire.

Q: What does travel insurance cover that SNS won’t?
A: Travel insurance pays for international medical care, evacuation, lost luggage, trip delays/cancellations, and sometimes rental car damage. SNS (and EHIC) cover only local medical treatment. Travel insurance is crucial for tourists or short-stay expats (e.g. 1-year student) to avoid huge hospital bills or out-of-pocket repatriation costs.

Q: I’m a retiree from outside the EU moving here – what insurance do I need?
A: You’ll need a residency visa (D7) which requires health coverage (initially, travel insurance is acceptable). After arriving, you can apply to join SNS (often by paying voluntary contributions). Alternatively, get a Portuguese private health plan. EU retirees can instead use an S1 form to get SNS coverage for up to 2 years.

Q: How often do I need to renew my policies?
A: Most insurances in Portugal renew annually. Insurers normally send renewal notices one month in advance. Check your paperwork: some allow monthly payments. If you don’t renew or pay by the due date, coverage will lapse. For mandatory cover (like auto or fire), do not let it expire – you could face fines and loss of protection.

Q: Can I get a multi-year policy?
A: Generally, policies are annual, but life insurance can be long-term (covering decades). Short-trip travel insurance can be for a fixed trip length. Car/home policies rarely exceed one year at a time, though you can usually renew through the same insurer for many years.

Q: Any shortcuts to reduce bureaucracy?
A: Keep all Portuguese paperwork handy: register with your local junta de freguesia (civil parish) for address proof, get your NIF and NISS early, and use ePortugal or Seguro Directo to compare quotes. Always double-check if an insurer quotes you monthly vs yearly pricing. For small claims, consider paying the repair yourself and only claiming larger losses to avoid premium hikes.