Slide 1. Introduction.

            The class develops the vehicles that must have compulsory third-party liability insurance and the implications for fleet management.

Slide 2. Vehicles that must have compulsory third-party insurance.

• Compulsory third-party liability insurance.

            Knowing which vehicles must have compulsory third-party liability insurance is essential for any driver and vehicle fleet. This insurance is not only an administrative requirement, but also the legal basis that protects third parties in the event of an accident.

            Knowing which vehicles are required to have third-party liability insurance is key to avoiding penalties and legal problems.

            The case of Spain is used as an example, as it is the same or similar in any country. The legislation is extensive, and it is recommended that an insurance expert advise on which vehicles need compulsory third-party liability insurance.

            In Spain, the fine for driving without insurance ranges from €601 to €3,005. The amount may vary depending on several factors.

1. Whether the car is parked or driving.
2. The length of time the vehicle has been without insurance.
3. The number of times the owner has been warned for repeating this offense.

            In Spain, the law is clear about which types of vehicles must have this minimum coverage, even if they are not used regularly.

            This requirement applies as long as the vehicle has Spanish license plates and is registered, even if it is parked in a garage or on private property.

            The responsibility for taking out compulsory third-party liability insurance lies with the owner of the vehicle.

            This means that:

1. Individuals who own a vehicle must have this insurance.
2. Companies that operate vehicle fleets are also responsible for insuring each vehicle.

• Legal framework for compulsory third-party liability insurance.

            When we talk about “vehicles with compulsory insurance,” we are no longer referring only to cars or motorcycles. Today, we share our public and private spaces with motorized vehicles that can put us in danger. Law 5/2025 on Third-party  Liability and Insurance in the Circulation of Motor Vehicles arises precisely from this reality. The aim is to adapt road safety to new forms of mobility and protect everyone from possible damage.

            Since July 2025, compulsory insurance has been extended to vehicles that were previously excluded by Royal Legislative Decree 8/2004.

            More and more vehicles are circulating or moving in environments shared with pedestrians: streets, rural roads, industrial warehouses, urban areas, or private spaces. And when there is coexistence, there is risk.

            The new regulations introduce a key criterion:

“It does not matter only if the vehicle is ‘motorized’ or if it travels on the road, but if it can cause damage to third parties.”

            For this reason, since 2025, many more vehicles have been included in compulsory insurance.

            The law broadens the traditional concept, and now the reason for compulsory insurance is not the fact of driving on the road or having a license plate, but rather the risk of causing damage to other vehicles or people. In other words, it includes vehicles that, due to their characteristics, speed, or use, may cause damage, even if they are not registered or do not drive on public roads. Thus, all vehicles that meet these requirements must have compulsory insurance:

1. Motorized operation.
2. Maximum factory speed exceeding 25 km/h.
3. Weight exceeding 25 kilograms.

• What constitutes a vehicle with habitual parking in Spain?.

            The law considers a vehicle to have habitual parking in Spain when:

1. It has Spanish license plates.
2. It is registered abroad but insured in Spain.
3. It does not have license plates, but its owner resides in Spain.

            In all these cases, insurance may be required.

• Vehicles that must have compulsory third-party  liability insurance.

            The following vehicles are required to have insurance, even if they are not regularly driven:

1. Passenger cars.
2. Motorcycles and mopeds.
3. Personal mobility vehicles such as bicycles and electric scooters: Delivery tricycles with electric or combustion engines, light vehicles used for last-mile delivery, and motorized goods transport platforms.
4. Vans and trucks.
5. Buses.
6. Quads and special vehicles.
7. Trailers weighing more than 750 kilograms.
8. Agricultural vehicles, even if they do not travel on the road: Tractors,    harvesters, grape harvesters, tractor trucks, rotary tillers, and agricultural loading equipment.
9. Industrial vehicles and mobile machinery: Mobile construction machinery, self-propelled forklifts, self-propelled machinery used in warehouses or private premises.
10. Machinery: Tractors, forklifts, and other construction machinery that travels on public roads.

• Vehicles exempt from compulsory insurance.

            The following are not required to take out third-party  liability insurance:

1. Conventional bicycles.
2. Standard electric scooters.
3. Electric unicycles.
4. Electric wheelchairs.
5. Trailers weighing less than 750 kilograms.
6. Vehicles used exclusively on closed circuits.
7. Motorized toys.
8. Vehicles in the process of being registered.
9. Vehicles in the testing phase.
10. Vehicles being transported and not in circulation.

            These cases are considered low risk to third parties or are regulated by other regulations.

• What compulsory third-party liability insurance covers.

            This insurance only covers damage to third parties, including:

• 1. Personal injury.
  2. Medical expenses.
  3. Compensation for disability or death.
  4. Material damage to other vehicles or property.
  5. Basic legal defense.

             It does not cover damage to the responsible driver's own vehicle or injuries.

• Difference between third-party compulsory and voluntary third-party liability.

    Compulsory third-party liability covers the legal minimum required.

    Voluntary third-party liability extends the compensation limits and protects the driver's assets in the event of serious accidents.

    Most policies include both for greater security.

• What happens if the vehicle is not used.

            Compulsory third-party insurance is not only necessary when driving, but must also be held even if the car is parked, abandoned, or in a private garage.

            The only legal way to not insure a vehicle is to temporarily deregister it with the DGT.

    Once deregistered, the vehicle:

1.    Cannot be driven.

2.    Does not pay road tax.

3.    Does not need insurance.

4.    Cannot pass the MOT (vehicle inspection test).

• Frequently asked questions (FAQs).

1. Vehicles not covered by compulsory insurance.

Ø      Electric scooters that do not exceed 25 km/h, are not modified, and comply with regulations.

Ø      Electric pedal-assisted bicycles (EPAC) with:

ü      Maximum power of 250 W.

ü      Assistance only when pedaling.

ü      Assistance cut off at 25 km/h.

Ø      Electric toys or vehicles for children.

Ø      Very light electric vehicles with no real capacity to cause damage to third parties.

            Even so, each case must be reviewed individually to avoid errors or misinterpretations.

2. If my vehicle does not have a license plate, do I have to take out compulsory insurance?.

            Yes, if the vehicle is one of those that must have compulsory insurance due to risk.

            The lack of a license plate does not exempt you from this obligation. In these cases, the vehicle is insured using its chassis number, which appears as the identifier on the policy.

            This is common in:

Ø      Agricultural machinery.

Ø      Industrial machinery.

Ø      Special vehicles.

Ø      Some light electric vehicles.

3. If my vehicle is not driven on public roads, does it need insurance?.

            The new regulations no longer limit the obligation to driving on public roads. You must have compulsory insurance if the vehicle:

Ø      Is in working order.

Ø      Could cause damage to third parties.

Ø      Is used in areas where there are people.

4. Does compulsory insurance cover accidents on private property?.

            Yes, compulsory insurance covers damage caused to third parties even on private property, provided that the vehicle is subject to this legal obligation.

            For example:

Ø      An accident involving a tractor on a farm.

Ø      A wheelbarrow causing damage in a warehouse.

Ø      An agricultural vehicle running over a person on private property.

5. What happens if I cause an accident and my car is uninsured?.

            If the driver of an uninsured vehicle causes an accident, the Insurance Compensation Consortium will cover the material and personal damages caused to third parties. Subsequently, the Consortium may claim compensation from both the driver and the owner of the vehicle.

            In addition, the driver will be fined up to €3,005, depending on the type of vehicle, and may be subject to other penalties for not having passed the MOT, for towing costs, municipal impound fees, etc. The vehicle may also be immobilized. “Without a doubt, the most serious thing that can happen when an uninsured car causes an accident is that the owner will have to pay for all the costs and damages incurred, including injuries, which in total can amount to tens of thousands of euros.”

6. What if I am involved in an accident while driving an uninsured vehicle and I am not responsible?.

            The compulsory insurance of the vehicle responsible for the accident will compensate you for material and personal damage. However, if you are driving without insurance, you will be fined between €601 and €3,005 and your vehicle will be immobilized. However, if you can prove that you are the injured party, you can claim damages from the other vehicle's insurance company. However, as you do not have legal defense coverage, you will have to carry out all the procedures yourself, including hiring professionals.

7. How to check if a vehicle has compulsory insurance.

            Finding out if a vehicle has insurance is quite easy. The FIVA-Insured Vehicles Information File allows you to check if a vehicle has valid compulsory insurance by entering its license plate number. This check can be carried out for both your own vehicle and for a vehicle that has been involved in an accident.

• Implications for fleet management.

            The main consequence of not having compulsory third-party  liability insurance is that the vehicle cannot legally be driven on public roads, with negative consequences for our fleet, such as:

1. Fines and legal penalties.
2. Removal of the vehicle from circulation and impoundment at the municipal pound.
3. Withdrawal of the driver's license, depending on the case.
4. Covering all costs in the event of an accident.
5. Third-party  lawsuits for damages to third parties.

            It is recommended that the following measures be implemented.

1. Make sure that the vehicle requires compulsory insurance.

            Some vehicles do not require compulsory insurance, which saves money, as explained above.

            Other vehicles, such as electric bicycles, electric scooters, etc., may require additional insurance under local council regulations, so it is important to find out whether this additional insurance is necessary.

            If additional insurance is required and we do not take it out, we may be fined.

2. Consult an insurance expert.

            If you have any doubts about whether a vehicle requires compulsory insurance, it is advisable to consult an insurance expert to ensure that you comply with all current regulations.

3. Cost of ownership (TCO).

            Vehicle insurance must be included in the calculation of the cost of ownership of the vehicle.

4. Immobilization of the vehicle.

            If the vehicle does not have compulsory third-party  liability insurance, you must ensure that the vehicle cannot be used.

            In summary, it is essential that all vehicle owners understand the regulations on third-party  liability insurance.       

            Ensuring that the vehicle has the necessary coverage not only avoids penalties, but also protects the driver and third parties in the event of an accident.

            Knowing the exceptions and types of vehicles that require insurance can prevent future problems and ensure compliance with current legislation.

Slide 3. Thank you for your time. 

            The class has discussed the vehicles that must have compulsory third-party  liability insurance and the implications for fleet management.