Choosing the right car insurance: 7 things you need to know?

Are you arriving in Luxembourg with your car, or do you need to buy one on the spot? Car insurance is compulsory in Luxembourg. Make sure you find out what you need to know, as there are certainly many differences with your country of origin. Rates, deductible system, extent of comprehensive insurance... Let's take a look at the most important information with our partner AXA, specialist in insurance in Luxembourg.

Insure before you register your car

When you arrive in Luxembourg with your car, you must register it within 6 months of your arrival. To do this, you'll need to provide a certificate of insurance. The steps are to be taken in the following order: 

• First of all, apply to the SNCA for a registration number. This certificate is essential for taking out insurance,
• Contact an insurer to take out car insurance.

Only then can you have your new license plates fitted.

Here you'll find everything you need to know to register your car in Luxembourg.

Optimum coverage with comprehensive insurance

Casco is a very common term in Luxembourg. What does it mean? Insuring your car with Casco simply means that you have the best possible level of insurance cover. Casco insurance is the Belgian equivalent of Omnium insurance. The French refer to it as assurance tous-risques.

Please note that this optimum level of coverage may vary from one country or insurer to another. Ask your insurance company for details.

The car deductible is not in use, ask for it!

Perhaps you're used to having to pay a deductible in the event of material damage to your car? A deductible means that you have to pay part of the repair cost out of your own pocket when it exceeds a certain threshold.

However, with some insurers, such as AXA, you have the option of requesting a deductible when you take out your policy. This allows you to reduce your premium.

Glass breakage cover is not limited to windows.

In some neighboring countries, having a mirror or headlight repaired is only covered by the insurer if the insured has comprehensive insurance.

In Luxembourg, it is not necessary to take out Casco insurance for this. Glass breakage cover is sufficient to cover this type of damage, without incurring a deductible.

Car insurance is more expensive in Luxembourg

If your car was previously insured in another country, you may notice a significant difference in the price of your new insurance. For example, there's a 30-50% difference between a French and a Luxembourg car insurance premium.

This may come as a surprise. But the difference can be explained by higher levels of insurance coverage.

In the event of a claim, it's rare to have to pay out money in Luxembourg. You may have to pay VAT.

Breakdown assistance is optional.

Accident assistance should not be confused with breakdown assistance. Most insurance contracts include accident assistance as standard. If your vehicle is immobilized as a result of an accident, your insurer will help you out without a hitch.

However, in the event of a breakdown (lack of fuel, wrong fuel, flat battery, etc.), you need to have taken out an option to be entitled to a tow truck. Think about it, especially as this is not the most expensive option.

Here you'll find all the details of AXA Luxembourg's car assistance services : breakdown assistance in the event of an accident, breakdown or puncture, oil change and towing in the event of misfuelling, vehicle opening in the event of lost or forgotten keys.

Bonus-malus calculation rules in Luxembourg

Although the bonus-malus system is used throughout Europe, each country has its own regulations. It's important to be familiar with Luxembourg's rules to understand how your premium will evolve over time.

For example, most insurers in Luxembourg use two scales. One covers civil liability only. This scale is based on the damage you cause to third parties in accidents for which you are liable. The other covers material damage to your own vehicle caused by you or an unidentifiable third party.

A two-tier system means that in the event of a malus, the associated percentage increase is applied to only part of your premium. This depends on the type of accident.

For example, if you've damaged your car door against a wall, you'll be subject to a material damage surcharge. This is the part of your premium linked to the Material Damage cover that will increase. The rest of your premium will remain unchanged. The premium increase is therefore less substantial.

Find out more about the bonus-malus system in Luxembourg.

If you come from France, Belgium, Germany or Portugal, you can claim the bonus you had in your country of origin in Luxembourg. All you need to do is provide your new insurer with a bonus-malus certificate.

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Car insurance is one thing. Here you'll find all the information you need about insurance in Luxembourg.