Transport and driving

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.

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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.

If you want to understand how the whole process of registering a car in Luxembourg works, we recommend our article dedicated to this topic and if you want to learn more about the insurance sector in Luxembourg we recommend you to visit the website of the Commissariat aux Assurances (CAA), this entity regulates all forms of insurance in Luxembourg, including car insurance.

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
Extended insurance
Casco, a comprehensive insurance
What affects the cost of insurance?

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?

Luxembourg hosts several insurance companies offering car insurance. Some are international, while others specialize in the local market. Key insurers providing coverage for vehicles in Luxembourg include Allianz, AXA, Bâloise, Foyer, and LaLux. Additionally, there are insurance comparison platforms like Topassur, where you can input your personal details to receive various plan options to choose from.

How to estimate the cost?

The cost of car insurance policies varies considerably based 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. To get an idea of the insurance cost for your situation you can find Luxembourg car insurance calculators on the companies' websites

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.

To apply for online car insurance in Luxembourg, you typically fill out an online form with details about yourself, your vehicle, and the desired coverage. After submitting, you'll receive a quote and can proceed with purchasing the policy.
If you prefer applying offline, visit the offices of your chosen insurer and speak with an agent. They'll gather necessary information and present available options along with associated costs. You can then decide on a plan and sign up.
You'll generally need to provide the following documents for your application:
Take a look at the list of documents
Before coming to the office, you can check what will be required to obtain a car insurance in Luxembourg.
*The mandatory items are marked with red asterisks.
Passport or ID card
Identification papers suit the process
Basic personal information like name and date of birth
Usually you will need to fill in the form
Residency status information
This affects your driver's profile and the cost
Car information
Vehicle details such as make, model, power, fuel type, or value
Car registration
Vehicle registration number and plates, if you have them already
Licence details
Driver's license details are necessary
Bonus/malus information
Will be calculated and provided at the insurer, if not owned previously
Prospective plan for insurance
Intended vehicle usage details
Parking details
Planned vehicle parking location
Take a look at the list of documents
Before coming to the office, you can check what will be required to obtain a car insurance in Luxembourg.
*The mandatory items are marked with red asterisks.
Case study and example for your information

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:

  1. Obtain a registration number: Visit, use the mobile app, or contact SNCA (Société Nationale de Circulation Automobile).

    Refer to our dedicated article on vehicle registration in Luxembourg for detailed instructions.

  2. Once you have the registration number, gather personal and vehicle information.
  3. Contact insurers online or offline to obtain quotes for different plans and costs.
  4. 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.
  5. 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.

Always contact your insurance company in the following cases
Traffic incidents involving third parties or not
If covered by correct type of insurance, they will help you
Such as fires, thefts, vandalism, or damage from natural disasters

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?

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