Young drivers in Luxembourg: getting insured, from accompanied driving to your first policy

Bonus-malus: every new policy starts at level 11

The Grand-Ducal regulation of 11 November 2003 places every new policyholder at level 11 of the scale, which is 100% of the base premium. There is no worse level reserved for young people: the price gap comes from the base premium, which each insurer sets freely according to its own risk criteria. At AXA, for example, the price for a young driver depends on experience, the type of car and where you live.

After that, at each annual renewal, a claim-free year moves you down one level and each claim paid to a third party moves you up three. Two rules work in beginners’ favour: after four consecutive claim-free years, your level can no longer be above 11, and a claim you reimburse to the insurer within four months of being notified of its payment does not count. Nor can the insurer raise the base premium during the contract because of a claim.

Percentages from the regulatory scale, applied to the base premium; a claim-free year only counts if the policy ran for at least 10 months of the observation period. The full scale and a simulator are in our bonus-malus guide.

Parents’ policy or a policy in your own name

The level belongs to the policy and its policyholder. A young driver named on their parents’ car drives at that policy’s level, and a claim they cause moves that level up. The day they take out a policy in their own name, they become a new policyholder and start at level 11. The regulation treats an existing policyholder adding a vehicle the same way: a second car insured for your child also starts at level 11. As AXA puts it, your level cannot be passed on, neither to a second car nor to your family.

Either way, declare the young driver. LALUX, for example, applies a recent-licence excess on vehicle damage cover, but not when the young driver is named in the policy or the policy is in their name. For third-party liability, an excess for a private individual can never exceed €1,500 per claim anyway.

Accompanied driving: get the insurer’s certificate first

After passing the theory test and taking at least 12 one-hour practical lessons at a driving school, 2 of them with the accompanying person, a category B candidate can continue training with a relative or close friend. The accompanying person must have held a B licence for more than 6 years and must not have been convicted of traffic offences, nor lost their right to drive, in the last 3 years.

The file sent to the SNCA must include a special certificate from the insurer: it states that the car’s third-party liability cover applies to accidents during accompanied driving and gives the names of the accompanying person and the candidate. Ask for it before the first drive. The regulation allows policies to exclude licence candidates: if the policy does not cover accompanied driving, the insurer compensates the victim but can claim the money back from the policyholder and the driver, up to €3,000 per claim. At AXA, for example, licence candidates are excluded from third-party liability unless the special conditions say otherwise, and the driver protection cover excludes accidents during driving lessons.

During this period, no driving outside Luxembourg or between 11 pm and 6 am, the accompanying person sits in the front and a white “L” on a red background, 20 × 13 cm, is displayed at the rear. Guichet.lu states that the accompanying person is solely responsible in the event of an accident.

After the test: a 24-month probation

Category B training can start at 17 and a half, and the practical test can be taken at 18. The licence you get is first a probationary licence valid for 24 months. During this period, the driver keeps a training booklet and must attend a one-day course at the Driver Safety Training Centre (CFC) in Colmar-Berg, possible from the third month; the certificate of attendance gives entitlement to the final licence.

Paying less without cutting corners

• A policy designed for beginners: Foyer presents moov as simple, accessible car insurance, ideal for young drivers or used cars.
• Drive less, pay less: AXA offers 7,000 or 5,000 km a year packages with no box to install; Baloise opens its limited-mileage offer to everyone.
• The right level of cover: third-party liability is the only compulsory car insurance. For a first used car, weigh the cost of damage cover against the car’s value before choosing between partial cover and fully comprehensive.
• Protect your first levels: for a small claim, repaying the insurer within four months avoids the three-level rise; do the maths before letting the policy pay.

To compare the Foyer, LALUX, AXA and Baloise policies, see our car insurance comparison; if you are moving from abroad, our guide for new arrivals explains vehicle registration.