I have just bought and insured a car in spain.
its a citroen c3 2006 56k on clock 1.1 petrol 4500 euros from torrecar torrevieja who still have a few left if your quick
i have checked insurance with direct line and through ibex
ibex were slightly cheaper 349 euros fully comp incl breakdown and glass cover
i went into the local office and everything was explained in english and i walked out with my green card and all cover docs.
if you go through direct line you may get them sometime in 2011 through the wonderful spanish postal system.
now you can see how easy my choice was
pm me for a local contact number if interested