Car Insurance Lanzarote

Car Insurance in Lanzarote — Generali Cover

Lanzarote has a well-developed road network connecting its main population centres. Puerto del Carmen and Arrecife are linked by the LZ-2 coastal road, while the LZ-1 and LZ-35 connect the north and south of the island. Expats resident in Lanzarote must insure their vehicles under Spanish insurance law, with IGIC (the Canary Islands tax) applied to premiums rather than mainland IVA.

Generali car insurance in Lanzarote includes Terceros (third-party), Terceros Ampliado adding fire, theft, and glass, and full Todo Riesgo (comprehensive). For UK-registered cars permanently driven in Lanzarote, re-registration in Spain is required within 90 days of residency — Turner Insurance can advise on cover during and after the process.

Car Insurance Lanzarote — Local Considerations

Lanzarote roads are generally well-maintained but volcanic terrain creates specific hazards — sharp lava rock on verges and occasional volcanic grit on road surfaces after strong wind events. Rural tracks in areas like La Geria wine valley and the El Jable volcanic desert are unmade roads not suitable for standard passenger vehicles.

Tourist traffic is heavy on the main LZ-2 coastal road, particularly in the Puerto del Carmen resort strip, during the October to April Northern European peak season. Residents should be aware that hire car incidents are a significant factor in island road traffic. Fully comprehensive cover provides the best protection in this environment.

New to Lanzarote? Two guides answer the questions we are asked most. One explains which DGT environmental sticker your vehicle needs. The other covers the 2026 Spanish traffic law changes.