What insurance should I take out, and with which company?
When you arrive in a new country, it’s important to get the right insurance to best protect your belongings and loved ones. Despite its reputation as a “safe country,” it’s important to properly insure your family and belongings, even in Luxembourg.
Here you will find information on which types of insurance are mandatory and/or recommended in Luxembourg to best protect your property and family.
We also provide an overview of the various insurance companies operating in Luxembourg.
Mandatory Insurance in Luxembourg
To help guide you, here you’ll find the types of insurance you need to purchase upon arriving in Luxembourg. Some types of insurance are mandatory, while others are recommended. We’ve outlined them below.
Personal Liability Insurance in Luxembourg
Personal liability insurance covers damages caused to third parties by wrongful acts. It covers the policyholder, their spouse, and their unmarried children living in the same household.
Thanks to this insurance, all unmarried individuals who do not have their own household or residence and who habitually live in a domestic community with the policyholder are insured free of charge.
This Personal Liability Insurance covers the policyholder and their beneficiaries in various situations:
- private individual,
- pedestrians,
- cyclist,
- athlete,
- head of household,
- homeowner,
- pet owner or caretaker,
- owner or user of household and gardening equipment.
It also covers any accidents caused by snow or ice in front of your home. Remember that in Luxembourg, it is your responsibility to clear your section of the sidewalk.
Home Insurance in Luxembourg
Why get home insurance in Luxembourg?
Tenants and homeowners should consider coverage for their house or apartment, furniture, and personal belongings. Home insurance is essential to protect against the many everyday household hazards.
Rental Risk Insurance
As a tenant or roommate, you are required to take out rental risk insurance. Rentalrisk insurance covers not only the house or apartment but also any outbuildings.
Your furniture and personal belongings are insured against fire, water damage, theft, broken windows, and storms.
Homeowner’s Insurance
Whether you live in your own home or rent it out, you must purchase homeowners insurance. This covers all risks, including damage and fire, …
What coverage does home insurance provide?
Home insurance always covers basic risks: fire, water damage, theft, glass breakage, storms, hail, and snow load.
Home insurance is available in several commercial packages, varying in comprehensiveness and modernity depending on the insurance company.
Homeowners insurance may also provide coverage for vandalism, terrorism, or sabotage.
Risks such as earthquakes, graffiti, and theft of outdoor furniture or electronic devices are also covered.
Damage caused by sewer backups or rainwater runoff can be insured.
Please note: in Luxembourg, the value of the kitchen is included in the valuation of your insurance policy. Be sure to include it when calculating your insurance coverage amount!
Check your insurance policy regularly
Do you already have a home insurance policy to cover your home and belongings? It may be wise to carefully review your home insurance policy on a regular basis.
The goal is to ensure you are properly covered. Over the years, you have likely made new improvements to your home or acquired new items. These should be included in your insurance policy to ensure they are properly covered.
Compare insurance offers
It’s also a good idea to compare the coverage offered in your insurance policy with other options on the market. Some companies provide emergency services for your home: water damage, clogged pipes, power outages, broken windows, damaged roofs, heating failures, immediate security measures by a professional in the event of a break-in, etc.
In the event of an incident, the company will take care of finding the right professional to resolve your problem as quickly as possible.
It is also important to note that certain insurance premiums may be tax-deductible on your tax return. They reduce the amount of taxable income.
Car Insurance in Luxembourg
Owning a motor vehicle in Luxembourg entails certain administrative obligations. Generally, after three months of residence in Luxembourg, your home country’s insurance company will no longer insure your car or motorcycle. You must find a Luxembourg car or motorcycle insurance policy.
We also remind you that after a certain period, your vehicle must be registered in Luxembourg.
Third-party insurance or comprehensive insurance?
Under Luxembourg law, every motor vehicle must be insured for at least liability coverage.
Third-party liability insurance
Third-party liability insurance covers bodily injury and property damage caused to third parties. This is third-party insurance. Please note that this insurance does not cover damage to your vehicle or yourself in the event of an accident.
Comprehensive auto insurance
“Comprehensive” insurance, also known as Casco, provides full coverage for your vehicle and yourself on a daily basis. In addition to liability coverage, this comprehensive auto insurance includes legal protection, fire, theft, glass breakage, and property damage coverage, as well as driver coverage. It is highly recommended because it is safer and more comprehensive than basic “Motor Vehicle Liability” insurance.
More tips for choosing your auto insurance
Accident Insurance
To protect yourself, in addition to your vehicle, Accident Insurance is also highly recommended. While not mandatory, it provides compensation payments if the insured person dies or is the victim of an accident. It also covers you in daily life, in the event of hospitalization, inability to work, sports accidents, etc.
The best advice on this matter? Make sure your accident insurance is comprehensive and not limited to certain categories of risks!
Other Recommended Insurance Policies to Consider
In addition to mandatory insurance, certain supplemental coverage options can be useful for providing peace of mind in your daily life and preparing for the unexpected. Here are the main types of insurance to consider based on your personal and family situation.
Supplementary health insurance
The Luxembourg healthcare system is based on basic coverage through social security. However, this does not cover all medical expenses.
Supplementary health insurance can cover all or part of the remaining costs, including:
- excess fees,
- dental or vision care,
- hospitalization costs in a private room,
- certain non-reimbursable treatments.
It may be offered by your employer or purchased on an individual basis.
Although the premiums are quite expensive, it may still be worth taking out this coverage to prepare for major life events.
Pet Insurance
If you own a pet, specific insurance can help you cover veterinary costs, which can sometimes be high.
Depending on the policy, this insurance may cover:
- routine checkups and care,
- surgical procedures,
- treatment for illness or accidents.
Some plans also include liability coverage for damages caused to third parties.
Choosing an insurance company in Luxembourg
Have you just arrived in Luxembourg and are looking for an insurance company to insure your property and loved ones? Here you will find the best-known insurance companies in the Grand Duchy so that you can get the right cover.
Certain risks must be covered in the Grand Duchy. This is particularly the case for car insurance, home insurance, and civil liability insurance.
Which insurance companies are there in Luxembourg?
All Luxembourg insurance companies can offer you insurance policies tailored to your needs. By taking out one of the insurancepolicies on offer, you can insure your property, your valuables, or your family, cover the risks associated with your professional activity, or even prepare for your future retirement with a retirement savings product.
Each insurance company has a specific status. The company may be independent or affiliated with international companies, whether or not they are leaders in the insurance field.
What insurance coverage is available?
However, regardless of their status, all insurance companies will offer you the insurance services you need to cover life's risks. Home insurance, civil liability, home insurance, car insurance, pet insurance, etc.
Luxembourg insurance companies also offer health insurance to supplement basic health coverage.
More broadly, they can also offer death risk coverage through death benefit policies. This can be particularly useful when taking out a loan with a bank.
They may also offer youlife insurance policies.
There are many insurance companies in Luxembourg. You can choose between Luxembourgish and international companies.
You can also opt for an insurance broker. Brokers represent several companies. They will work with you to determine the insurance company that best suits your needs and offers the best rates for the type of insurance you are looking for.
Compare insurance policies and coverage
However, your choice of insurance should be guided not only by rates, but also by the coverage offered.
Don't forget that insurance is primarily intended to cover one or more risks. Be sure to check which risks are covered and to what extent. Find out the deductible amounts, i.e., the costs you will have to pay in different risk situations.
Insurance is about peace of mind for you and your loved ones. Ask for a quote and a description of the risks covered before you commit. Also find out about any additional services offered!
If prices differ from one insurance company to another, it is often due to differences in the coverage offered and the insurance terms and conditions. Low prices often mean low coverage, high deductibles, and numerous exclusions. When you receive the contract and before signing it, carefully read the terms and conditions and, above all, the exclusions from the proposed insurance policy.
When it comes to car insurance, choosing a specific model of vehicle may mean you pay a little more for your insurance. This is particularly the case for "tuned" cars. Insurance can be much more expensive...
Insurance comparison tools are available online, so don't hesitate to use them.
Insurance Commission
The CAA (Commissariat aux Assurances) is a public institution under the authority of the Ministry of Finance. The CAA is the body responsible for supervising the insurance sector in Luxembourg. Among other things, it is responsible for protecting policyholders.
You will find all documents related to the insurance sector in Luxembourg on the CAA website. A dispute resolution service for complaints is expected to be offered to consumers in the near future.
Life Insurance
Long-term care insurance is designed to provide financial protection for the insured and their loved ones in the event of life’s uncertainties, such as:
- inability to work,
- disability,
- death.
It supplements benefits paid by government agencies and ensures a continued income or the payment of a lump-sum benefit to your beneficiaries.
This type of coverage is particularly relevant if you have dependents or significant financial obligations.
Life Insurance
Life insurance in Luxembourg is a product that combines savings, wealth transfer, and financial protection. It is distinguished in particular by a regulatory framework that offers significant security for policyholders.
It can serve several purposes:
- building savings over the medium or long term,
- preparing for the transfer of your estate,
- diversifying your investments within a specific tax framework.
As an expatriate or newcomer to Luxembourg, your insurance needs may change rapidly as you settle in. From healthcare to income protection, family coverage, and wealth management, it is essential to have a comprehensive view of your protection.
Taking the time to assess your priorities (health, financial security, liabilities, long-term plans) will allow you to choose insurance policies tailored to your situation, without unnecessarily multiplying your policies.
Guidance can be helpful in making informed choices in an environment that may differ from that of your home country.
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