Pet liability insurance prices rise by 25%

July 18 , 2025 // Specialty

Published in Seguros News

Rastreator believes that the lack of awareness regarding the legal requirement for pet insurance continues to rise following the latest developments detailed in the draft royal decree. Although the Animal Welfare Law came into effect in 2023, its implementing regulations have not yet been issued, which can lead to confusion about the obligation to take out civil liability insurance for pets. In fact, half of Spaniards are unaware whether pet insurance is currently mandatory.¹

Carmen Reverte, head of pet insurance at Rastreator, explains that “it’s important to keep in mind that the regulation is not yet mandatory, as its implementing rules have not yet been approved. The draft royal decree will go through the Council of State, where a report will be prepared before it is submitted for approval by the Council of Ministers. Furthermore, it would not come into effect until six months after its publication in the Official State Gazette (BOE), so the exact date when pet insurance will be mandatory is still unknown. However, regions such as the Community of Madrid and the Basque Country already stipulate that all dogs are required to have liability insurance, regardless of breed.”

Main features of the draft decree
With this draft royal decree, all dog owners will be required to have third-party liability insurance with a minimum coverage of €100,000. If the animal is considered potentially dangerous in aptitude tests, the coverage cannot be less than €150,000. The insured capital varies compared to previous years, as coverage ranged from €60,000 to €300,000 depending on the insurance company and the dog's breed, among other factors.

“Another new feature is that the insurance must be taken out within 48 hours of registering the animal's ownership in the corresponding Registry. Furthermore, it's important to note that Home insurance policies that include Civil Liability coverage for the policyholder's pets will also be valid, provided they meet the established requirements,” explains Reverte.

The price of Civil Liability insurance increases by 25%.
Insurers are already adapting to this draft royal decree by increasing the insured capital and including more additional coverage. For this reason, the average price of Civil Liability insurance is currently €49 per year, while in 2023 it was €38, representing a 25% increase in the premium.

Reverte explains that “these types of insurance usually include, in addition to Civil Liability, the organization of Legal Defense, as well as telephone legal advice and assistance with administrative procedures. However, if the aim is to protect the pet's health, a comprehensive insurance policy should be taken out, which includes veterinary coverage and accident assistance and costs around 374 euros per year.”