Insurance in Portugal
Insurance plays an important role in the Portuguese economy and in the lives of the Portuguese, and it is given much more attention (and family budget) than in post-Soviet countries. In general, insurance is divided into compulsory and voluntary.
What insurance does the law require?
Medical insurance
A healthcare service operates in Portugal National Health Service All residents can access certain services funded by social security payments: ambulance services, polyclinic appointments, maternity coverage, etc.
Non-residents need to purchase private medical insurance in order to get access to treatment. Residents who have state health insurance also take out additional private insurance. This allows them to cover costs not covered by state funding, avoid waiting weeks for a doctor's appointment, and gain access to a wider range of medical services.
Quotient healthcare in Portugal represented by international (Liberty, Allianz, Zurich) and local (Tranquilidade, Fidelidade, Lusitania) companies.
The cost of the policy varies significantly depending on the level of cover. At the same time, most insurers are unable to provide an exact quote until you complete a health questionnaire.
An insurance agent who acts in the name and on behalf of the insurance company will help you understand the nuances of the policies (and make significant savings by choosing the optimal policy). The price of the policy from them will be the same as in the provider's office (they receive commission from the provider, not by marking up the policy).
Car insurance
In Portugal, there are car insurance options similar to other European countries. By law, you must insure all roadworthy vehicles for at least third-party liability. In Portugal, the vehicle is insured, not the driver. This means that anyone with a driving licence can legally drive the insured car.
Motor third-party liability insurance (compulsory third-party motor insurance covers costs associated with both property damage and personal injury to third parties in the event of an accident. This is the cheapest type of vehicle insurance. However, it does not cover costs associated with you or your own car.
You can choose an additional one car insurance.It includes damage caused by fire, flooding and natural disasters, as well as theft protection.
Another type of vehicle insurance is comprehensive (comprehensive car insurance. It covers all expenses of all parties. Some such policies in Portugal have exclusions, so you need to carefully study the conditions of the proposed plan.
Comprehensive insurance policies have an excess, which represents the amount you will have to pay towards a claim. The smaller the excess, the higher your monthly or annual premium. However, in the event of an accident, you will pay less.
The cost of car insurance in Portugal depends on a number of factors, including the value of the vehicle, the type of insurance, and the driver's profile and history. Below is the calculation for 3 car insurance plans from Fidelidade for a 10-year-old Mazda2: the cost depending on coverage will be €244-309.
Home insurance
If you are arranging mortgage In Portugal, home insurance is compulsory. Landlords are also required to take out a minimum level of property insurance.
There are two types of home insurance in Portugal:
- Fire insurance (fire insurance) – is the minimum requirement for all homeowners, which covers all parts of the property against damage caused by fire. Most such policies also include insurance against floods, storms and other natural disasters.
- Multi-risk insurancecomprehensive insurance) is additional comprehensive insurance.
You can also include contents insurance in many home insurance policies to protect not only the building, but what is inside it.
The cost of home insurance in Portugal will depend on such factors as the value of the property, the level of cover and the risks associated with the real estate.
Additional insurance types
Life insurance
Life insurance is protection against the risks of death or disability, guaranteeing your dependants provision in the event that you are no longer able to provide for them. Over 6 million Portuguese people are covered by this insurance.
The insurance premium is recalculated annually upon renewal depending on your age and state of health.
Life insurance
Life insurance is protection against the risks of death or disability, guaranteeing your dependants provision in the event that you are no longer able to provide for them. Over 6 million Portuguese people are covered by this insurance.
The insurance premium is recalculated annually upon renewal depending on your age and state of health.
Home insurance
You can add it to your combined property insurance policy or take it out as a standalone policy if you are renting your home. Contents insurance protects your movable property and equipment against damage, loss, and theft.
Contents insurance will set your mind at rest if you have a lot of valuables. Premiums are usually not that high, especially if they are included in a combined home insurance policy, although obviously they will depend on the value of what you want to insure.
Home insurance
You can add it to your combined property insurance policy or take it out as a standalone policy if you are renting your home. Contents insurance protects your movable property and equipment against damage, loss, and theft.
Contents insurance will set your mind at rest if you have a lot of valuables. Premiums are usually not that high, especially if they are included in a combined home insurance policy, although obviously they will depend on the value of what you want to insure.
Travel insurance
Travel insurance is an essential option for those who frequently travel for work or leisure. If you are applying for a Schengen visa, it becomes a requirement when you will need at least:
- Minimum medical insurance €30,000;
- Coverage of medical repatriation costs.
You should ensure that the policy covers everything you need: trip cancellation, emergency evacuation and lost baggage. Check the small print for exclusions, such as injuries resulting from sports or adventure activities.
Travel insurance
Travel insurance is an essential option for those who frequently travel for work or leisure. If you are applying for a Schengen visa, it becomes a requirement when you will need at least:
- Minimum medical insurance €30,000;
- Coverage of medical repatriation costs.
You should ensure that the policy covers everything you need: trip cancellation, emergency evacuation and lost baggage. Check the small print for exclusions, such as injuries resulting from sports or adventure activities.
Liability insurance
You will need public liability insurance if you are a business owner, homeowner or car owner in Portugal. Premiums for basic cover are low.
Liability insurance
You will need public liability insurance if you are a business owner, homeowner or car owner in Portugal. Premiums for basic cover are low.
Country house insurance
Many people have holiday homes in Portugal. For this reason, there is a special form of home insurance called second-home insurance.
Holiday home insurance can include cover for the following risks:
- loss of rental income as a result of property damage or non-payment of rent by tenants;
- opportunity cost of living;
- emergency home visit charges;
- social responsibility;
- pool cover.
As with most other types of insurance, the costs will depend on various factors, such as the level of cover and the value of the property.
Country house insurance
Many people have holiday homes in Portugal. For this reason, there is a special form of home insurance called second-home insurance.
Holiday home insurance can include cover for the following risks:
- loss of rental income as a result of property damage or non-payment of rent by tenants;
- opportunity cost of living;
- emergency home visit charges;
- social responsibility;
- pool cover.
As with most other types of insurance, the costs will depend on various factors, such as the level of cover and the value of the property.
Corporate insurance
Emigrants starting a business in Portugal will need to take out insurance to protect themselves against risks associated with running a business. There are insurances that are compulsory for all businesses, those that are compulsory for certain types of business, and others that are optional. The main types of business insurance include:- Public liability insurance – mandatory for all businesses. Insurance protects against third-party claims that may result in damage, injury, or financial loss. It can also cover compensation for damage caused to someone's reputation.
- Buildings insurance – not compulsory for all businesses, but usually required if you need a loan or any form of financing. It insures against material damage resulting from fire, flooding or natural disasters. It can also include vandalism.
- Equipment insurance – optional, but recommended. Protects moveable property against damage and theft.
- Business interruption insurance – an additional type of insurance that protects against loss of income, including staff wages, if a business has to temporarily cease trading.