Insurance for learners

Navigating the roads of Gibraltar requires not only a valid driving license but also appropriate vehicle insurance. Insurance is a critical component of responsible vehicle ownership, offering financial protection and peace of mind. This guide provides an overview of the insurance requirements in Gibraltar and outlines the steps to obtain suitable coverage for your vehicle.

Understanding Insurance Requirements in Gibraltar

In Gibraltar, it is a legal requirement for all motor vehicles to be insured before they are driven on public roads, even for learners. The law mandates that every driver must have at least third-party liability insurance. This compulsory coverage ensures that if you are involved in an accident that causes injury or property damage to others, the affected parties can receive compensation.

Mandatory Third-Party Liability Insurance

Third-party liability insurance covers:

Bodily Injury: Compensation for injuries or death caused to other people in an accident where you are at fault.
Property Damage: Costs associated with damage to another person’s property, such as their vehicle or personal belongings.

Driving without valid insurance is a serious offense in Gibraltar, leading to significant penalties, including fines, endorsement points on your driving license, and potential disqualification from driving. Additionally, in the event of an accident without insurance, you could be personally liable for all damages and legal costs - which could be up to millions of pounds if the accident is severe. This will effectively ruin your life, so make yourself a favour and never drive without an insurance.

As a side note, even if you have an insurance you must meet all other legal requirements - otherwise the insurance coverage is void (e.g. it is as if you are driving without an insurance), e.g. you must have a valid driving license, the car must have a valid MOT certificate, etc.

Fully Comprehensive Insurance

This type of insurance provides the highest coverage (for instance coverage to damage to your car or its occupants), however as a learner it is nearly impossible to get such a type of insurance, and if you do the fee will probably rack up to a few thousand pounds.

Obtaining an insurance in Gibraltar

This is probably one of the more challenging aspects of driving in Gibraltar - due to the size of our country, there is a limited amount of companies that offer vehicle insurance, namely:

ibex
Masbro
Argus

These companies know that the competition is not fierce, so they do not really need to fight much for customers - customers will flock to them, no matter how high the cost or how bad the service is. Do not get frustrated, we have all been there.

Here are some tips to keep your sanity when getting vehicle insurance in Gibraltar as a learner:

Shop around: Even if there are only a small number of suppliers compare options from all of them, this means investing a morning or afternoon touring the various insurance companies. Take your time and find the best deal.
Be patient: Customer service is not amongst the key values of the insurance companies in Gibraltar, so be prepared to be patient, to put a nice smile and to take a lot of abuse from them. Repeat to yourself that you are doing this for a good cause (e.g. to get you on the road) and ignore all the efforts they make to discourage you. Do not lose your cool when they have to 'check with their underwriters' every single thing.
Bring your documentation: You will need, depending on the day and how they feel about it, a number of documents - bring them with you (or digital copies) so you can walk out with an insurance: driver license, car logbook, road worthiness certificate, id card, etc.
It will cost you: in a market that favours the insurance companies you will have to pay up, specially for a learner. No matter if you are the main driver or get insured as a named driver on someone else's policy the premium will shoot up thanks to you. Once you are 21 the premium goes down a bit and once you are 25 you are no longer considered a learner.

Which vehicle can you insure?

Insurance risk goes up the faster the car you are insuring. Insurance companies in Gibraltar are very much aware so they have quite a restrictive approach to which cars you can insure:

Limited CC: they will not insure a car which is over 1600cc
Limited power: the car must have less than 115 horse power. If it is a hybrid car this includes the sum of the combustion engine and the electric engine which, even in the smallest of hybrids, will be over 115 horse power. Funnily enough this means that a new driver will not be able to drive a hybrid car, instead having to settle for a full-on combustion engine - and likely one of a used car as most new cars are now hybrid.
Not financed: if you do not own your car but are financing it, the car dealer usually required that you must put the car under fully comprehensive. Because insurers will not insure a learner on anything but third party means that you must own the car you are insuring. If you are a learner this means that you will end up buying a second hand car.

Your mileage may vary if you know someone higher up at the insurance company, or if your family has 100 different cars insured with them but, overall, the companies will stick to these rules.

Obtaining the right vehicle insurance in Gibraltar is essential for legal compliance and financial protection. By understanding the mandatory requirements and carefully selecting a policy that suits your needs, you can drive with confidence and peace of mind. Take the time to research, compare options, and consult with professionals if necessary. Proper insurance coverage safeguards not only your interests but also contributes to the safety and security of all road users in Gibraltar.