Insurance in Portugal: Complete 2026 Guide for Expats

When moving to Portugal, you must have health insurance (as a non-resident), third-party car insurance, and fire insurance if you own property with a mortgage. Understanding which policies are mandatory versus optional helps expats make informed coverage decisions in Portugal's €11.6 billion insurance market.

Overview of Insurance in Portugal

Portugal ranks mid-tier in Europe for insurance markets. Key statistics:

• Market size: €11.6 billion (2017), up 6.5% from previous year
• Number of companies: 73 insurance companies operating
• Regulation: Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF)
• Industry association: 99% of companies belong to Associacao Portuguesa de Seguradores (APS)

Legally Required Insurance in Portugal

Health Insurance

Who needs it: Non-residents and short-term visitors must purchase private health insurance to access healthcare in Portugal.

Who doesn't: All residents can access Servico Nacional de Saude (SNS), Portugal's public healthcare system similar to UK's NHS, funded through social security payments.

Even residents with public coverage often purchase supplemental private insurance to:

• Cover costs not met by public funding
• Access wider range of treatments
• Reduce wait times
• See specialists without long delays

Major providers include Allianz Care and Cigna Global.

Car Insurance

Minimum required: Third-party liability insurance (seguro obrigatório de responsabilidade civil automóvel) for all roadworthy vehicles.

Key differences from other countries:

• Vehicle vs. driver insured: The vehicle itself is insured, not the driver
• Anyone can drive: Any licensed driver can legally drive an insured car
• What's covered: Material and personal damage to third parties only
• What's NOT covered: Costs to you or your own vehicle

Optional upgrades to third-party:

• Fire, flood, and natural disaster coverage
• Theft protection

Fully comprehensive (seguro de danos próprios): Covers all costs to all parties. Review policy carefully for exclusions.

All policies include deductibles (the excess you pay when claiming). Costs vary based on driver profile and vehicle value.

Home Insurance

Mandatory for: Anyone taking out a Portuguese mortgage

Not required for: Rental accommodations (though landlords must insure and may pass costs to rent)

Costs depend on property value, coverage level, and property-specific risks.

Social Insurance (Social Security)

Compulsory for all employees. Employers typically arrange enrollment and make contributions on your behalf.

Coverage includes:

• Unemployment benefit
• Sickness benefit
• Maternity, paternity, and adoption leave
• Invalidity benefit
• Old age pension
• Survivor benefit

Self-employed workers: Must arrange their own social security. Contribution levels and benefits differ slightly from employees.

Optional Insurance in Portugal

Life Insurance

Protects dependents in case of death or disability. Common policy types:

• Annual renewable term: Premium recalculated yearly based on age and health
• Decreasing term: Fixed premium for set time period

Home Contents Insurance

Can be added to home insurance or purchased separately (useful for renters). Protects movable possessions against damage, loss, and theft. Premiums are generally affordable, especially when bundled with home insurance.

Travel Insurance

Required for Schengen visa applications:

• Minimum medical coverage: €30,000
• Repatriation on medical grounds

Shop around for policies covering:

• Trip cancellation
• Emergency evacuation
• Lost or damaged possessions
• Sports/adventure activities (check exclusions)

Liability Insurance

Recommended for businesses, landlords, and vehicle owners. Can be part of home insurance or standalone policy. Protects against causing damage or injury to others or their property.

Less common in Portugal than some countries, but available from most insurers at reasonable rates.

Unemployment Insurance

Private unemployment insurance offers greater protection than state schemes. Some banks and loan providers require this when issuing large loans.

Holiday Home Insurance

Specialized coverage for vacation properties, including:

• Loss of rental income after property damage
• Non-payment of rent by tenants
• Alternative accommodation costs
• Emergency travel to property
• Public liability
• Swimming pool coverage

Costs vary based on coverage extent and property value.

Commercial Insurance

Required for all businesses:

• Public liability: Covers claims for damage, injury, financial loss, or reputation damage to third parties

Required for specific situations:

• Building insurance: Usually required for loans/funding. Covers fire, flood, natural disasters, vandalism

Optional but recommended:

• Equipment insurance: Protects movable assets from damage and theft
• Employee insurance: Social security enrollment mandatory; private workplace schemes optional
• Business interruption: Covers income loss and salaries if business must cease trading temporarily

Many insurers offer package deals combining multiple types. Shop around for value tailored to your business needs.

Useful Resources

• Compare o Mercado - comparison site for insurance, credit, energy, hotels
• ExpatsList Blog - more expat guides
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