Bonus-malus in Luxembourg: how it works, what it costs you, how to bring it down

One scale, set by law

In Luxembourg, the third-party bonus-malus is not a commercial invention of each insurer: it is defined by the Grand-Ducal regulation of 11 November 2003 (amended 29 March 2024) and applies in exactly the same way at Foyer, LALUX, AXA, Baloise and the others. The scale has 25 levels, from −3 to 22. Each level corresponds to a percentage of the reference premium: 45% at level −3, 100% at level 11, 250% at level 22.

Three rules explain the whole mechanism: you enter the scale at level 11; a year without an at-fault claim gains you one level; an at-fault claim costs you three. Your level appears on your claims history certificate and follows you from one insurer to the next: switching never resets it.

What it does to your premium

To give orders of magnitude, we start from the third-party premium range recorded at level 11 in August 2026, between €30 and €50 a month, and apply the regulatory coefficients to the three reference points of the scale.

Profile	Level	Coefficient	Third-party only, estimate
Maximum bonus (14 claim-free years or more)	−3	45%	€14 to €23 a month
Entry into the scale (new driver, new arrival)	11	100%	€30 to €50 a month
Maximum malus	22	250%	€75 to €125 a month

Two important details. The scale only concerns third-party liability: partial and full casco each have a grid specific to the insurer. And only at-fault claims count: a scratch on your own car with no third party involved does not touch your third-party bonus.

Bringing it down: what actually works

The first lever is mechanical: every year without an at-fault claim gains you a level, and it takes fourteen years from level 11 to reach the maximum bonus. The second lever is chosen when you sign: bonus protection. Since the scale is identical everywhere, it has become the main point of difference between insurers. LALUX offers the “Bonus-Malus Joker” in easyPROTECT Auto: first claim neutralised after three claim-free years in the Confort plan, bonus fully protected in the Performance plan. Baloise builds it into its Indemnisation pack; Foyer and AXA offer equivalent options. Over the life of a policy, this option often weighs more than a few euros of difference on the base premium.

Third lever, if you are arriving from another country: your driving history. Many insurers accept a claim-free certificate from your previous European insurer, but the level of recognition varies, with some matching your foreign class directly and others applying a partial credit. A cross-border worker settling in the Grand Duchy has every interest in having several insurers asked about this precise point, which a licensed partner broker can do from a single request.

Young driver or new arrival: starting on the right foot

Without a Luxembourg history, you enter at level 11, so at 100% of the reference premium. Some plans are designed for this profile, such as moov at Foyer, accessible and suited to used vehicles. AXA applies a reduced premium to hybrid and electric vehicles and offers pay-per-kilometre cover under 7,000 km a year. For a complete overview of the formalities, our guide for new arrivals details registration and deadlines.

Compare before you sign

Since the bonus-malus is the same everywhere, the comparison comes down to three things: bonus protection, damage cover (partial casco or full casco) and services (replacement vehicle, protected driver, new-value cover). Our Luxembourg car insurance comparison puts Foyer, LALUX, AXA and Baloise side by side on these criteria, and our car insurance page summarises the guarantees to examine before requesting a quote.