Car insurance in Luxembourg is strictly regulated in order to protect drivers and third parties in the event of accident. This means that it is mandatory to have third party insurance because you own a car. Car insurance is often more expensive in Luxembourg. This is due to the size of the country and the absence of excess insurance in most contracts.
The minimum required cover to insure your car in Luxembourg is third party car insurance, which covers third party damages, whether material or personal. This coverage is mandatory and must be taken out before the vehicle can be driven.
The bonus-malus system reflects your behaviour behind the wheel. Each at-fault claim or claim the insurance provider must pay for material damages can increase the malus, leading to a higher premium, while driving without claim progressively reduces the insurance cost.
The insurance premium is therefore fixed depending on your bonus or malus and reevaluated each year:
- A neutral bonus is equal to 11.
- For each year you drive without a claim your bonus can decrease by 1 point, the lowest being as low as -3.
- Each claim increases the bonus by 3 points.
| Degree | Bonus-Malus % of base premium |
|---|---|
| 22 | 250 |
| 21 | 225 |
| 20 | 200 |
| 19 | 180 |
| 18 | 160 |
| 17 | 140 |
| 16 | 130 |
| 15 | 120 |
| 14 | 115 |
| 13 | 110 |
| 12 | 105 |
| 11 | 100 |
| 10 | 100 |
| 9 | 90 |
| 8 | 85 |
| 7 | 80 |
| 6 | 75 |
| 5 | 70 |
| 4 | 65 |
| 3 | 60 |
| 2 | 55 |
| 1 | 50 |
| 0 | 47.5 |
| -1 | 45 |
| -2 | 45 |
| -3 | 45 |
“Protected driver” cover
“Protected driver” cover is complementary coverage. It protects insured drivers in accidents, including when they are responsible, particularly in the event of personal injury. This cover is not automatically included in insurance contracts, but may prove to be necessary. In fact, the driver is the only person who is not covered in an accident with standard coverage. It is therefore necessary to purchase this coverage to cover the driver in case of an accident. After all, isn’t your life more important than your car?
Reinstatement value cover
Reinstatement value cover allows you to be refunded to the purchase value of your vehicle, in case of accident or theft. This could be attractive especially if your car is new or recently purchased.
Roadside assistance
Roadside assistance covers towing your car, your transportation and a replacement car. This coverage applies even if the car breaks down at your home. Consider this option when you purchase car insurance.
To insure your car, you will need to provide (this list is not exhaustive and the requested documents can vary from one insurance provider to another):
- A copy of your ID
- Your driving license
- Your car registration document
- Your previous no-claims bonus document to see how many points should be applied
- Information about
- Your car (make, model, engine…)
- Your use
- Garage or private parking
Your insurance provider may ask you for more information in order to offer you coverage corresponding to your needs.
You have just arrived in Luxembourg, how do you register your car?
Have you just moved? You need to register your car in Luxembourg within six months of your move. To do this you must:
- Request a registration number. To get this number you will have to carry out several administrative processes first (including buying a “Droit de Chancellerie” stamp and the customs clearance for your car - sticker 705).
- Meet with the National Society of Automobile Traffic to register your car.
- Take a roadworthiness test with the SNCT if your vehicle requires one.
At minimum you need car insurance, third party insurance is mandatory to be able to drive and which in case of accidents will cover any third party damage. However, all risk insurance will offer you more complete protection, including damages to your own vehicle.
The important question that you must ask yourself is: “How important is my vehicle?” If it is your only vehicle and you can’t do without it, you may therefore need to choose all risk insurance (casco) by considering the options you need.
What is casco?
Casco insurance is complete automobile insurance coverage which protects your car against damages, even if you are liable. It does not only cover damage to other vehicles (like third party insurance), but also damage to your own car, whether it is after an accident, theft, a fire or natural events. It is more commonly known as “tous risques” (all risk) in France or “omnium” in Belgium.
Does the insurance cover driving across borders?
Yes, your insurance covers you throughout the whole of the European Union and sometimes beyond, according to the agreements in place (different countries are mentioned on your international insurance card - formerly “carte verte”). Additional insurance cover may be applied for long extended travel, contact your insurance provider if you plan to travel outside Luxembourg with your car for an extended period.
The main factors include the age of the driver, the type and engine power of the vehicle, previous usage (personal or professional) and claims history.
Why is car insurance more expensive in Luxembourg?
The highest insurance rates are due to better coverage and the absence of excess insurance in most cases.
How to get a personalised quote?
Information to prepare for your quote
To get a precise quote, get information about your vehicle (model, year, engine) as well as your insurance history. Also indicate your needs in terms of insurance cover and options.
Baloise online simulator
Baloise offers a simulation tool which allows you to calculate the cost of your insurance quickly according to your requirements. This is a practical way to have an immediate estimate adapted to your needs.
Taking out car insurance in Luxembourg is an essential step in your move. Baloise is with you as you take this next step, with bespoke solutions to suit your driving habits. A simple appointment is enough to understand your needs, whether protecting your car against broken glass, natural disasters or material damage.