How Car Insurance Claims Are Settled in Spain: The Convenio and Módulo System
By Andrew Turner — exclusive agent since 2007 · DGS Registry C0467B54657010 · Last reviewed May 2026
Car insurance claims in Spain are settled in a way that surprises most expats. Spanish insurers do not bill each other the exact cost of every repair — they settle between themselves using fixed agreed amounts called módulos, under a set of industry agreements (convenios). This is the detailed companion to our article on why car insurance premiums are rising in Spain. Here is how it actually works.
Get a Free Quote →A different way of settling claims
In most countries you might expect the at-fault driver’s insurer to pay the exact cost of the damage they caused. Spain works differently. Since 1988, Spanish insurers have settled the majority of motor claims between themselves through a system of direct compensation (indemnización directa) and fixed módulos. It was designed to clear millions of small and medium claims quickly, without two companies arguing over every invoice.
The key idea: your own insurer deals with you, and the insurers square up with each other separately, in bulk, using agreed average amounts.
Direct compensation — your own insurer pays you
Under indemnización directa, if another driver is at fault, you do not chase their insurer. Your own insurer:
- Assesses the damage to your car;
- Pays for your repair in full, in line with your policy;
- Then recovers a fixed módulo from the at-fault driver’s insurer through the inter-company system.
The convenios: CIDE, ASCIDE and SDM
Three industry agreements decide how a claim between insurers is handled. Almost every Spanish insurer has signed up to them, and they are administered through CICOS, the electronic clearing system run by TIREA.
| Convenio | When it applies | Settled by |
|---|---|---|
| CIDE since 1988 | A direct collision between exactly two vehicles, both insured in Spain, with a signed parte amistoso (the European Accident Statement / Declaración Amistosa de Accidente) and agreed fault. | Fixed módulo |
| ASCIDE since 1990 | The same kind of two-car accident, but the parte amistoso was not signed or the drivers do not agree on who was at fault. | Fixed módulo |
| SDM since 2002 | Claims the other two cannot cover: more than two vehicles, or no direct collision (for example a car that swerves to avoid you and you hit something else). | Módulos (material damage system) |
In short: CIDE for a clean two-car bump, ASCIDE when fault is disputed, and SDM for everything more complicated. All three end the same way — the insurers exchange módulos rather than real invoices.
What exactly is a módulo?
A módulo is a single fixed amount that the at-fault insurer pays the victim’s insurer for a qualifying claim. It is based on the coste medio sectorial — the average cost of a claim across the whole Spanish market — and it is reviewed each year. The companies do not settle claim-by-claim at the real price; they settle on this average and reconcile their accounts at the end of the period.
This is the direct link to your premium. Because the inter-company settlement runs on the sector average claim cost, when that average rises — as it has sharply since Covid — every insurer’s costs rise with it, and premiums follow the average claim, not the value of any one car.
A few basic examples
Example 1 — a clean two-car bump (CIDE). Someone reverses into your car in a car park. You both sign the parte amistoso and agree they were at fault. Your own insurer arranges and pays for your repair, then recovers the agreed módulo from their insurer. You deal only with your own company.
Example 2 — the same scratch versus a bigger repair. Here is the part that surprises people. Within the convenio, the recovery between the insurers is the same fixed módulo whether their client left a small scratch on your wing or caused a more serious panel repair. The amount the companies exchange is the average, not your actual bill — even though you are still paid for the real repair.
Example 3 — fault is disputed (ASCIDE). Two cars collide but neither driver will sign the parte or accept blame. The claim still settles between the insurers, now under ASCIDE, using the agreed module rather than a courtroom fight over a bumper.
Example 4 — three cars, or no contact (SDM). A three-car chain shunt, or a driver who brakes hard and forces you into a wall without touching you, falls outside CIDE/ASCIDE and is handled under the SDM material-damage system — again on a module basis.
When the convenios do NOT apply
The module system is not universal. It does not cover, and these are settled at their real cost or under separate rules:
- Personal injury. Bodily-injury claims are valued separately under the official scale (baremo, Ley 35/2015), at their real value — never by módulo.
- The largest material claims. Damage above the convenio limits, including some total losses of high-value cars, can be reclaimed at actual cost outside the module.
- An insurer that is not a member, or a foreign-registered / foreign-insured vehicle — the convenios are between Spanish insurers.
- Single-vehicle accidents and claims with no identifiable third party (where the Consorcio de Compensación de Seguros may step in instead).
Why this matters to you
For you as the customer, the system is mostly good news: you deal with one company — ideally one that speaks your language — and you are paid for your actual damage without having to fight the other driver’s insurer. The catch is what it means for pricing. Because insurers settle on the average claim cost, your premium is built on that same average, which is exactly why repair-cost inflation pushes prices up for everyone. We explain that side in full in why inflation is driving up car insurance premiums in Spain.
How we help after an accident
As authorised Generali agents in Jávea, we handle the whole claim for you in English — from the parte amistoso at the scene to the repair and the settlement. See our how to claim guide and our motor claim page, or arrange car insurance with people who will explain exactly how a claim will be settled before you ever need one. Contact us or call 966 461 625.
Frequently asked questions
How are car insurance claims settled between insurers in Spain?
Through direct compensation (indemnización directa) and fixed amounts called módulos, under the CIDE, ASCIDE and SDM agreements administered by CICOS. Your own insurer pays your claim, then recovers an agreed module from the at-fault insurer rather than the exact repair cost.
What is the difference between CIDE, ASCIDE and SDM?
CIDE covers a direct collision between two Spanish-insured vehicles with a signed accident statement and agreed fault. ASCIDE covers the same kind of accident when the statement is not signed or fault is disputed. SDM handles claims the other two cannot — more than two vehicles, or no direct collision.
What is a módulo in Spanish car insurance?
A módulo is a fixed amount one insurer pays another for a qualifying claim, based on the sector average cost of a claim (coste medio sectorial) and reviewed each year. It lets insurers settle in bulk on averages instead of arguing over every invoice.
Does the módulo mean I get less for my claim?
No. The módulo only governs how the two insurers settle with each other. Your own insurer pays for your actual repair in full under your policy. The averaged amount is purely a wholesale settlement between the companies.
Who pays if the other driver is at fault in Spain?
Your own insurer pays you directly under indemnización directa, then recovers the agreed module from the at-fault driver’s insurer. You do not have to chase the other company yourself, which is one of the main advantages of the system.
Are injury claims settled by módulo too?
No. Personal-injury claims are valued at their real amount under the official scale (the baremo, Ley 35/2015), not by module. The convenios and módulos apply to material damage to vehicles.
Sources & references
- TIREA — CICOS — the inter-company claims clearing system.
- UNESPA — the Spanish insurers’ association, on motor-claim conventions and average costs.
- DGSFP — the Spanish insurance regulator.
Want a claim handled in English?
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This article is general information, not personalised or legal advice. Convenio terms, módulo amounts and the law can change. For advice on your own cover or a claim, contact Turner Insurance.