The recently approved Law 5/2025, dated 24 July, introduces major updates to the legal framework governing civil liability and insurance for motor-vehicle use. This reform incorporates the contents of EU Directive 2021/2118 into Spanish legislation.

Below we outline the key developments that may be most relevant to our clients:

1 – Updated definitions affecting compulsory civil-liability insurance

The Law revises the traditional definitions of motor vehicle and use of the vehicle, redefining their scope and characteristics.

A motor vehicle is now understood as any mechanically powered vehicle that does not run on rails and has either a maximum design speed above 25 km/h or a net weight above 35 kg with a maximum design speed above 14 km/h. The definition also includes trailers and semi-trailers, whether attached or not, provided they are intended for use with the vehicles described above.

The Law also introduces the category of light personal vehicles, defined in contrast with motor vehicles. Typical examples include electric scooters, personal mobility devices, and maintenance machinery. Cycles and bicycles with assisted or electric pedaling remain excluded from both categories, meaning they continue to be exempt from compulsory civil-liability insurance.

The concept of vehicle use is broadened to cover any operation of a motor vehicle—regardless of its features, the terrain, or whether it is moving or stationary. As a result, the regulation now applies in private areas such as practice grounds, internal roads, car parks, and maintenance zones.

2 – Mandatory civil-liability insurance for light personal vehicles (e.g., electric scooters)

The First Additional Provision of the Law—effective from 2 January 2026—introduces new obligations for owners of light personal vehicles. The aim is to ensure coverage for personal injury and property damage arising from accidents involving these devices.

From that date onwards, owners must:

  • Hold compulsory civil-liability insurance to operate light personal vehicles.
  • Being registered in the Vehicle Registry of the Directorate-General for Traffic.
  • Holding an identification label with the assigned registration number or, where applicable, a licence plate, in order to ensure coverage of compensation for personal and material damages suffered by individuals affected in accidents involving this type of vehicle.

3 – Extension of compensation coverage by the Insurance Compensation Consortium, even in cases of insolvency proceedings of the insurer

The scope of coverage provided by the Insurance Compensation Consortium is expanded. The Consortium will compensate affected individuals residing in Spain for damages to both persons and property resulting from accidents occurring in Spain involving a motor vehicle, even when the insolvent insurer from another EU Member State (other than Spain) is subject to bankruptcy or insolvency-related liquidation proceedings.

In conclusion, Law 5/2025 has brought about a comprehensive transformation of the Spanish system of civil liability and compulsory motor vehicle insurance, fully aligned with European regulations and the case law of the Court of Justice of the European Union. Specifically, it strengthens victim protection and broadens the mandatory insurance coverage, including electric scooters and personal mobility vehicles.

These legislative updates are the result of an interpretation carried out by the addwill team, who you can contact using the online form, for guidance on any of the measures outlined above and, more generally, on any matter related to judicial proceedings under Spanish civil law.