Car insurance in Luxembourg

Luxembourg law requires every registered vehicle to carry third-party liability insurance, known as responsabilité civile (RC). This covers bodily injury and property damage you cause to others in an accident. Driving without valid RC is a criminal offence.

RC is the minimum legal requirement, but it does not cover damage to your own vehicle. That is why many drivers opt for additional levels of protection - partial CASCO or full omnium - depending on the value of their car and their risk tolerance.

Understanding the three main coverage levels helps you choose the right balance between protection and cost:

• RC (third-party liability) - Mandatory minimum. Covers damage to others only. Best for older vehicles with low market value.
• Partial CASCO - Adds theft, fire, glass breakage, storm damage and animal collisions. A good middle ground for mid-range vehicles.
• Full omnium (CASCO complète) - Covers everything in partial CASCO plus your own accident damage, vandalism and parking damage. Recommended for new or high-value vehicles.

Each level can be customised with a deductible (franchise) to lower your premium. The partner insurer helps you find the optimal balance for your situation.

Several factors determine how much you pay for car insurance in Luxembourg:

• Bonus-malus level - Your claims history directly impacts your premium. Each year without an at-fault claim gains you one level, down to level −3 (45% of the reference premium).
• Driver age and experience - Younger drivers (under 25) and new licence holders typically face higher premiums due to statistical risk.
• Vehicle type and value - Engine power, purchase price and repair costs all influence your rate. Some insurers grant discounts to electric and hybrid vehicles.
• Coverage level - Choosing RC only is cheapest, while full omnium with low deductible costs more but protects you more.
• Annual mileage and usage - Lower mileage and private use usually mean lower premiums than high-mileage professional use.

In Luxembourg, the third-party liability bonus-malus is set by Grand-Ducal regulation and applies in the same way at every insurer. The scale has 25 levels, from −3 to 22: you enter at level 11 (100% of the reference premium), each year without an at-fault claim gains you one level and each at-fault claim costs you three. Level −3, reached after fourteen claim-free years, corresponds to 45% of the reference premium. Our article on bonus-malus in Luxembourg details the scale and the bonus protection options.

If you are moving to Luxembourg or are a cross-border worker, many insurers accept a claims-free certificate from your previous insurer in another European country. The level of recognition varies: some insurers match your foreign history directly, while others apply a partial credit. The licensed partner insurer will tell you which starting level it would grant you.

Young drivers generally pay higher premiums. With no history, you enter the scale at level 11, and each year without an at-fault claim then lowers the premium. Some plans target this profile, such as moov at Foyer, and AXA offers pay-per-kilometre cover under 7,000 km a year. Our young driver guide covers accompanied driving, the first policy and recent-licence excesses.

Electric and hybrid vehicles get dedicated terms at some insurers: AXA applies a reduced premium, and both AXA and LALUX cover the battery and charging cables.

An imported vehicle must be registered in Luxembourg with the SNCA, which sets out the procedure and the documents required; insure it before you drive it again. The partner insurer can tell you whether it recognises your foreign no-claims history. For your home, see our Luxembourg home insurance comparison.

Want to switch insurer? Termination must be notified at least 30 days before the annual due date: our guide to switching insurance in Luxembourg covers the notice, the accepted forms and the timeline.