Your old insurance policy is probably not suitable for Andorra. Many insurers cover you on a green card but their nearest representatives are normally in Barcelona or Toulouse and can sometimes take up to six weeks to come up to Andorra to examine your damaged vehicle, during which time you cannot use the vehicle or start repairs. Also, foreign insurers are chary about giving permanent green cards (British Composite Insurers particularly so) and may decline a claim if you have not been entirely honest with them e.g. concerning your place of residence. The disadvantage is that the local insurance rates are considerably higher than in other countries due to young persons in high powered BMWs, Golf GTIs etc. Previous no-claims bonuses are not accepted here. There is no problem with insuring a foreign registered vehicle in Andorra.

Those who cannot wait to have a vehicle registered on Andorran plates have two alternatives. The first is to register under MT (tourist) plates. This is expensive as you have to pay 7% import duty on acquiring the plates and another 7% when you switch to normal plates and on top you pay 60 Euros per annum fee to the government. The second is to register the vehicle in the name of an Andorran company.

If you have a residencia your car can be registered in your own name but the vehicle must not be more than FIVE years old; or if you have a 'vintage' car it must be over THIRTY years old. This may be a car that you have purchased here or one that you bought in your previous place of residence. You must have owned the vehicle for at least six months prior to being granted your residencia. When registering the car there is an initial 7% import duty payable on the book value of the vehicle and the licensing department charges 176.13 Euros for the yellow card (log book). The registration plates are purchased separately from the Andorra Automobil Club for a one off cost of 35.50 Euros. The yellow card has to be renewed annually and the charge is 24 Euros per year until such time as you have been resident ten consecutive years when you no longer have to renew your yellow card or carta groga.