Insuring a Vehicle in Luxembourg

Information on the different types of car insurance available in Luxembourg, plus details on premiums, claims and cancelling an insurance contract...

In Luxembourg it is the car and not the driver that is insured. All Luxembourg registered cars must have at least third party liability auto insurance (assurance responsabilité civile or RC). Additional insurances are available and widely used. The original insurance certificate must be carried in the vehicle at all times.

Types of Insurance

There are three main types of insurance in Luxembourg

  • Third Party Liability Insurance (Responsabilit√© Civile or RC) - provides cover against damage to third party property resulting from an accident
  • Part Comprehensive (Tiers Personnes) - provides third party, fire and theft cover
  • Fully Comprehensive (Tous Risques or Casco) - this policy covers virtually everything

Car Insurance

The cost of vehicle insurance varies from one insurance company to another. Other factors to take into account include:

  • make and model of the vehicle, its power and its age and occasionally its colour
  • driving history and age of the driver(s), some companies have differing premiums according to gender and place of residence of the driver
  • whether the car is parked off-street or in a private garage

Only residents of Luxembourg can take out vehicle insurance in Luxembourg.

Bonus-Malus system

Luxembourg car insurance has a system of no-claims bonuses, known as the Bonus-Malus system: annual rates increase if a claim is made when an accident is the driver's fault; if the driver has no accidents the rates will decrease.

All new drivers start at a premium level with a certain number of points that correspond to a full price premium. Each year the cost of the insurance will be adjusted:

  • In the event of a claim, the level increases by three points
  • If there are no claims made in the year, the level will decrease by one point

The maximum amount of no-claims bonus is 55 percent.

A no claims bonus accumulated abroad can be transferred to a Luxembourg insurance company. The person will need to obtain a certificate from their insurance company stating the amount of no-claims bonus they have.

In the Event of an Accident

All insurers provide drivers with an Accident Report Form (constat amiable d'accident), available in French, German and English. In case of a minor accident, both parties must sign this form. For comprehensive information about road traffic accident and claims:

An accident report sheet will need to be sent to the insurance company within a limited time which differs from one company to another (usually five to eight days). Check with the insurance company.

Cancelling/Transferring a Car Insurance Contract

Insurance contracts are automatically renewed at expiry date. Three months written notice must be given when cancelling a car insurance contract. It is possible to have a clause inserted into the policy allowing cancellation, for example, for those who are obliged to move away from Luxembourg for employment reasons.

The Green Card

Luxembourg insurers automatically provide a Green Card which extends normal insurance to other European countries. The Green Card must be kept in the car at all times when driving abroad.