I hope someone with more knowledge comes along as we are going to need this soon too but I have found this info on the web so far.
Breakdown Insurance
If you’re going to be motoring abroad or you live abroad and are going to be driving in Spain, it’s important to have motor breakdown insurance (
seguro de asistencia en carretera), which may also include holiday and travel insurance, including repatriation for your family and your car in the event of an accident or breakdown.
Motor breakdown insurance covering Spain and other European countries is provided by car insurance companies and Spanish motoring organisations. Insurance companies usually offer an optional accident and breakdown service (
asistencia en viaje), which is adopted by some 75 per cent of Spanish motorists.
The breakdown service normally covers the policy holder, his spouse, single dependent children, and parents and grandparents living under the same roof. The 24-hour telephone number of the breakdown service’s head office is shown on a card, which should be kept in your vehicle.
If you have an accident or break down, you simply call the emergency number and give your location, and a recovery vehicle is sent to your aid. Although accidents are covered anywhere in Spain, in the event of a breakdown you must be a certain distance from your home, e.g. 15 or 25km (9 or 15mi).
The insurance provides for transportation in the event of a breakdown or illness, although transportation to hospital (if necessary) and medical treatment are covered up to a limited amount. An interest-free loan and an emergency message service is normally provided in the case of a robbery. The retrieval of your vehicle is also guaranteed from within Spain or abroad. If you’re unable to find spare parts locally to repair damage, your insurance company will arrange to have them shipped to you (at your expense).
Most foreign breakdown companies provide 24-hour centres where multilingual staff provide help and advice on motoring, medical, legal and travel matters. Some organisations also provide economical annual motoring policies for those who frequently travel abroad, e.g. owners of holiday homes in Spain.I should add that I stole this text from
http://www.justlanded.com/english/Spain/Spain-Guide/Travel-Leisure/Car-InsuranceAnother firm I have come accross but not investigated so far is RACE
http://www.race.esAngie