Garantía Global | Insurance & Mechanical Warranty for Professionals

For Automotive Professionals

Manufacturers, main dealers, independent dealers, workshops, and car rental companies.

Insurance format backed by an insurance company

All types of vehicles

Passenger cars, motorcycles, microcars, hybrid/electric vehicles, motorhomes, light commercial vehicles (LCVs), etc.

Various coverage options, durations, and EU-wide territorial scope

Global Area

Digital quoting and policy issuance for mechanical breakdown insurance using only the vehicle's registration and mileage.

Claims Management by Automotive Specialists

Digital reporting, response in < 2 days, and settlement in < 10 days.

Legal Context

The Mechanical Breakdown Insurance

Mechanical warranties are marketed through two types of providers: guarantor companies that sell warranties as a service (self-insuring breakdowns without specific regulation), and insurance intermediaries who sell warranties backed by a regulated insurance company and formalised through insurance policies.

In Spain, these companies are regulated by the DGSFP (Directorate General of Insurance and Pension Funds), a public body under the Ministry of Economy that ensures the solvency of entities, protecting policyholders and guaranteeing the payment of covered claims.

Statutory Warranty Vs. Commercial Warranty

Mandatory. In Spain, this is regulated by Royal Legislative Decree 7/2021 of 27 April, which updates the General Law for the Protection of Consumers and Users.

At least 1 year. Although the Law establishes a general period of 3 years, for second-hand vehicles, it allows for a reduction to 1 year, provided this is agreed upon between the buyer and the seller and is explicitly stated in the vehicle’s sales contract. This reduction is standard industry practice.

Any lack of conformity; that is, any circumstance, characteristic, or fault not specified in the sales contract or the "conformity sheet" (ficha de conformidad) signed by the buyer at the time of vehicle delivery.

During the first year, the presumption of lack of conformity prevails. This means it is presumed that if a breakdown occurs, it already existed at the time of delivery. Therefore, the buyer only needs to notify the seller of the fault. It is the seller who must prove that the breakdown is due to misuse or normal wear and tear, consistent with the vehicle's age, mileage, and usage.

Optional; does not replace or supersede the statutory warranty, but serves as an additional layer of protection. This is a supplementary warranty that the vehicle seller takes out either for their own protection or to differentiate themselves from the competition.

Up to 5 years. It is standard practice to take out cover for either 12 or 24 months.

Mechanical, electrical, or electronic breakdowns of the insured components of the vehicle, caused by accidental or unforeseen events (excluding wear and tear or faults due to lack of maintenance). This includes both parts and labour costs.

The service is outsourced to a mechanical breakdown insurance provider. They provide the policyholder and the beneficiary with access to their Claims Department, which manages the vehicle's repair at a workshop of the customer's choice or a partner garage. The department handles the claim with the insurance company to ensure the costs are settled.

Supporting you throughout your commercial operations

Discover our services.

FINANCE

Is your customer looking to buy a vehicle?

Apply for finance in just 5 minutes.

CLAIMS

Have you had a breakdown?

Report a claim quickly online.

Bespoke Design

For all types of vehicles, featuring a variety of coverage options and indemnity limits.

Quoting System

Multiple mechanical breakdown insurance options, tailored to the specific needs of main dealers and independent showrooms.

Policy Issuance & Generation

Instantly generated via Global Area using only the vehicle’s registration and mileage, with a direct link to the insurance underwriters.

Digital Signature & Certificate Dispatch

Secure digital signing of policies and automated delivery of insurance certificates to beneficiaries, ensuring full compliance with DGSFP (Spanish Insurance Regulatory Authority) standards.

Collection & Settlement

Management of premium collections from customers and the settlement of premiums with the insurance companies.

Claims Notification, Management & Assessment

End-to-end claims handling: digital reporting, processing, expert assessment, and final approval or declinature.

Vehicle details

Access Global Area and enter the vehicle's registration and mileage.

Choose the best option

Select the level of cover that suits your needs and the duration.

Beneficiary information

Enter the beneficiary's details: first name, surname, ID number (NIF/NIE), email, and phone number.

Certificate delivery

Pay for the insurance (based on your payment method) and download the insurance certificate for your customer.

What is the difference between a statutory warranty and a commercial warranty?

The statutory warranty (legal guarantee) is regulated by Royal Legislative Decree 7/2021 of 27 April under the General Law for the Protection of Consumers and Users, and it is mandatory. It lasts for at least one year and covers any lack of conformity at the time of the vehicle's sale.

The commercial warranty is optional; it does not replace or supersede the statutory warranty. It acts as an additional layer of protection, lasting up to five years, which the vehicle seller takes out to protect themselves or to stand out from the competition.

What is a "lack of conformity"? What is a "sudden failure" in mechanical breakdown insurance?

A lack of conformity refers to any circumstance, characteristic, or fault not specified in the sales contract or the conformity sheet signed by the buyer at the time of delivery.

A sudden failure (or unforeseen breakdown) in mechanical breakdown insurance is a mechanical, electrical, or electronic fault in the insured components of the vehicle caused by an accidental or unexpected event.

What is the difference between "insurance-backed" warranties and "service-based" warranties?

Insurance-backed mechanical warranties are exclusively marketed by insurance intermediaries, who are authorised and regulated by the DGSFP (Spanish Directorate General of Insurance and Pension Funds) and formalised through insurance policies.

The DGSFP is a public body under the Ministry of Economy that ensures the proper functioning and solvency of entities operating in the market. It protects policyholders and beneficiaries, guaranteeing the settlement of all covered claims.

Is it possible to deduct VAT on mechanical breakdown insurance?

Mechanical breakdown insurance, like all insurance products, is exempt from VAT. Instead, other surcharges apply, such as IPT (Insurance Premium Tax, known as IPS in Spain) or the Insurance Compensation Consortium surcharge.

IPT cannot be reclaimed through a VAT return; however, it is added to the total cost of the insurance. The entire amount is then tax-deductible as a business expense in your accounts and for Corporate Tax (IS) purposes.

We design your mechanical breakdown insurance

We design mechanical breakdown insurance and warranty extension programmes for all types of vehicle

For Automotive Professionals

Insurance format backed by an insurance company

All types of vehicles

Various coverage options, durations, and EU-wide territorial scope

Global Area

Claims Management by Automotive Specialists

Our Solutions

Mechanical Breakdown Insurance & Warranty Extensions

Fleet Insurance or Stock-in-Trade Insurance

Affinity or Loyalty Programmes

The Mechanical Breakdown Insurance

Statutory Warranty Vs. Commercial Warranty

Statutory Warranty

Commercial Warranty

Supporting you throughout your commercial operations

Is your customer looking to buy a vehicle?

Have you had a breakdown?

Policy management and insurance issuance through our private portal

We offer a comprehensive service