Car insurance in Luxembourg
For anyone planning to drive within the Grand Duchy, learning the specifics of car insurance in Luxembourg is crucial. As car insurance is compulsory, you need to know about different types of insurance available, their features, application procedures, costs and more.
There are significant differences between Luxembourg and other countries when navigating Luxembourg car insurance policies. In Luxembourg, policies typically waive all deductibles in the event of an accident, use a unique calculation method for bonus/malus schemes, and although premiums may be higher, the accompanying services and benefits are significantly more attractive.
When do you need car insurance and what types are there?
Car insurance in Luxembourg is a legal requirement for anyone owning a motor vehicle, with coverage mandated even before registration.
No insurance – no registration
In fact, car insurance is necessary for vehicle registration in the country; without a valid insurance certificate, registration and authorization for road use are not possible.
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If you come to Luxembourg as a visitor with a car and want to drive here
For visitors staying in Luxembourg for less than 6 months with auto insurance from another EU country, there's no need to secure insurance in Luxembourg.
The obligation is to demonstrate possession of the minimum mandatory insurance from the country of residence by presenting the corresponding insurance certificate, commonly known as the green card. This document details insurer and insured information and lists the countries covered by the insurance.
Car travellers from Luxembourg
Similarly, Luxembourgish auto insurance holders traveling to other EU countries for short periods need only present their Luxembourgish auto insurance certificate during controls or incidents.
For stays exceeding 6 months in Luxembourg, car insurance becomes mandatory. However, there are numerous options available, ranging from basic liability coverage to intermediate policies that include additional coverage beyond liability, to comprehensive "all-inclusive" policies known as casco insurance.
Let's now take a closer look at the different types of car insurance available.
Third-party liability insurance, known as "assurance responsabilité civile" in French, is the most basic insurance required for vehicle registration and circulation in Luxembourg. This coverage protects against bodily injury and property damage caused to third parties for which the insured party is responsible. However, it does not cover expenses incurred by the insured, their vehicle, or their property.
Specifically, this type of insurance includes:
- Coverage for bodily and/or material damages caused to third parties by a responsible driver involved in an accident
Where is the party, again?
Third parties may include pedestrians, cyclists, as well as drivers or passengers involved in the accident.
Cost of this type of insurance
The cost of these policies varies significantly depending on several factors such as the make, model, age, and condition of the vehicle, the driver's profile including age and claims history, as well as the vehicle's usage (leisure, commuting, business, etc.). For a mid-range car under five years old, one can expect to pay around 500 euros per year for third-party insurance. In favorable conditions, the cheapest contracts in this category can be found at around 360 euros per year.
Extended insurance, known as "assurance au tiers plus" or "assurance intermédiaire" in French, provides coverage for third-party liability along with partial coverage for the insured's own vehicle. However, each insurance company offers different coverages, and packages vary from one insurer to another, making it essential to compare prices.
This type of insurance serves as a middle ground between third-party and comprehensive insurance. It offers better coverage than the former at a lower price than the latter. Most insurers provide customizable car insurance options, allowing individuals to add coverages that best suit their needs, ranging from personal injury coverage for the driver to assistance and legal protection.
Extended insurance may include several elements depending on the package, with third-party liability always included, it encompass:
- Bodily and/or property damage caused to third parties by an at-fault driver
- Costs arising from incidents not attributable to the insured, such as fires, thefts, vandalism, or damage from natural disasters
- Damage to the vehicle resulting from collisions with animals
- Glass breakage
- Accident assistance
- Replacement vehicle provision
- Repair or replacement of personal belongings
- Legal protection
Cost of this type of insurance
While the car insurance price for extended coverage can vary based on factors such as the vehicle's make, model, and the driver's history, individuals can expect to pay around 750 euros per year for this type of insurance on a mid-range car less than five years old. To get accurate car insurance prices tailored to individual circumstances, it's advisable to obtain personalized quotes from different insurers.
When visiting an insurer in Luxembourg for the first time, you may encounter a type of insurance known as "Casco" insurance. Commonly referred to as "assurance tous risques" in French, this insurance signifies comprehensive coverage, including both third-party and own damages, along with various additional elements.
Comprehensive car insurance is the most extensive type of coverage available, encompassing:
- Third-party liability coverage
- Protection against incidents such as fires, thefts, vandalism, natural disasters, terrorist acts, and attacks
- Damage caused by collisions with animals
- Glass breakage coverage
- Accident assistance
- Breakdown assistance
- Provision of a replacement vehicle
- Repair or replacement of personal belongings.
- Legal protection
- A certain number of taxi rides per year if unable to drive
- Compensation, based on the vehicle's purchase value in case of theft or total loss
Cost of this type of insurance
Similar to other types of insurance, the cost of comprehensive policies varies significantly based on multiple factors. As a general guideline, for a mid-range car less than five years old, individuals can expect to pay around 1500 euros annually. However, personalized quotes are recommended to determine accurate pricing tailored to specific circumstances.
The cost of car insurance policies varies considerably based on several factors. These include the make, model, age, and condition of the vehicle, as well as the driver's profile, including age and usage patterns such as leisure, commuting, or business purposes.
Insurance companies also consider the driver's claims history. The country operates a bonus/malus system similar to many others, wherein drivers can earn annual discounts for each claim-free year.
- Luxembourg's system is notably generous, allowing discounts to accumulate over thirteen years, unlike some countries where they may cap at five years, with a maximum discount of 55%.
How and where to apply for insurance in Luxembourg
Below, we will outline the process of how and where to apply for car insurance in Luxembourg. But first, let's take a look at the most known insurance companies working in the country.
Who are the biggest players?
How to estimate the cost?
How to apply for a car insurance?
With most insurers, you have the option to apply for a policy online or speak with an agent at a nearby office.
Let's say you've recently relocated to Luxembourg, bringing your vehicle with you and planning to reside in the country. As your stay exceeds 6 months, you'll need to register your vehicle in Luxembourg, a process that involves mandatory vehicle insurance.
Here's a step-by-step guide to getting the insurance:
- Obtain a registration number: Visit MyGuichet.lu, use the MyGuichet.lu mobile app, or contact SNCA (Société Nationale de Circulation Automobile).
Refer to our dedicated article on vehicle registration in Luxembourg for detailed instructions.
- Once you have the registration number, gather personal and vehicle information.
- Contact insurers online or offline to obtain quotes for different plans and costs.
- Compare plans and companies considering factors:
- Bonus for claim-free years or other discounts.
- Customization options for desired extras and removal of unnecessary coverage.
- Claims processing ease, online accessibility, payout speed, and amount.
- Company reputation: Check customer reviews and opinions online.
- Option to choose a deductible to reduce premiums.
- Corporate social responsibility (CSR) practices: Check ratings on CSR Hub or Standard Ethics.
- Choose a plan and subscribe.
How to use your car insurance?
In the event of an accident, it's crucial to fill out the European Accident Statement and submit it to your insurer. If the accident is severe, call emergency services. Take photos of the damages and, if necessary, gather witness statements.
After completing the accident statement, contact your insurance company to file a claim. Most insurers allow claims to be filed online, over the phone, or in person at nearby offices. You'll need to provide details about yourself and the incident in a second form. For instance, AXA provides a sample form.
Three years deadline
It's essential to file the claim promptly after the accident. Insurers may impose their deadlines, and late claims require a valid reason. In Luxembourg, the legal deadline for claiming insurance is three years.
Frequently Asked Questions (FAQ)
Is car insurance mandatory in Luxembourg?
What types of car insurance are available in Luxembourg?
What factors affect the cost of car insurance in Luxembourg?
Source: www.expatica.com, www.caa.lu, web.archive.org, www.justarrived.lu, www.justarrived.lu, www.justarrived.lu, www.axa.lu, www.justarrived.lu, prim.net, www.lecomparateurassurance.com, www.service-public.fr, topassur.lu, switchr.lu, www.lesfurets.com, www.axa.lu, www.foyer.lu, www.baloise.lu
We took photos from these sources: Unspalsh