Car Insurance in Luxembourg: Everything You Need to Know (No-Claims Discount, Comprehensive Coverage, Deductible, Prices)

Are you arriving in Luxembourg with your own car, or do you need to buy one there? You should know that car insurance is mandatory in Luxembourg. Be sure to do your research: there are many differences compared to your home country (pricing, deductible system, scope of comprehensive coverage, etc.).

Here is a comprehensive overview of the essential information you need to fully understand car insurance in Luxembourg, provided by our partner AXA Assurances Luxembourg.

Car Assistance in Luxembourg: Breakdown or Accident?

It’s important not to confuse accident assistance with breakdown assistance.

Accident assistance is automatically included in most insurance policies. If your vehicle is immobilized following an accident, your insurer will provide roadside assistance without issue.

However, in the event of a breakdown (running out of fuel, filling up with the wrong fuel, dead battery, etc.), you must have purchased an optional coverage to receive a tow truck. Keep this in mind, especially since it’s generally not the most expensive option.

Find all the details here on the roadside assistance offered by AXA Luxembourg: breakdown assistance in the event of an accident, breakdown, or flat tire; towing; wrong fuel; unlocking the vehicle if you’ve lost your keys…

No-Claims Discount in Luxembourg: How It Works and Its Impact on Your Insurance

Although the no-claims bonus system is used throughout Europe, each country has its own regulations. It is therefore important to understand Luxembourg’s rules to know how your premium will change.

In Luxembourg, most insurers use two scales:

• Liability: damage caused to third parties in an at-fault accident
• Property damage: damage caused to your own vehicle

A two-tier system means that if you receive a penalty, the increase applies only to a portion of your premium, depending on the type of claim.

For example, if you damage your car door against a wall, a “Property Damage” penalty will be applied only to that coverage. The rest of your premium remains unchanged.

Find out more about how the no-claims bonus works in Luxembourg

If you’re coming from France, Belgium, Germany, or Portugal, you can claim your no-claims discount by providing a certificate to your new insurer.

How to choose the right car insurance? Read our expert’s advice

Vehicle registration and insurance in Luxembourg: steps to follow

When you arrive in Luxembourg with your car, you must register it within 6 months.

To do so, you’ll need to provide a certificate of insurance. Follow these steps in the order listed:

• Apply for a registration number from the SNCA
• Contact an insurer and purchase car insurance
• Obtain your insurance certificate
• Have your license plates installed

Only after completing these steps will you be able to drive with your new license plates.

Find all the steps to register your car in Luxembourg

Comprehensive insurance: all-risk coverage in Luxembourg

The term “casco” is widely used in Luxembourg. It refers to comprehensive insurance (also known as “omnium” in Belgium).

Insuring your car with comprehensive coverage means you benefit from the highest level of coverage, including damage caused to third parties and damage sustained by your vehicle.

⚠️ Note: This level of coverage may vary by insurer and country.

Check with your insurance company

Car Deductibles in Luxembourg: An Important Detail to Know

Unlike in other countries, an deductible is not automatically applied in Luxembourg.

The deductible is the portion of repair costs you are responsible for in the event of a claim.

With some insurers, you can choose to add one when you sign up. This helps lower your premium.

Requesting a deductible can therefore be advantageous

Windshield Breakage Coverage in Luxembourg: Comprehensive Coverage

In some neighboring countries, damage to items such as side mirrors or headlights is only covered under comprehensive insurance.

In Luxembourg, glass breakage coverage can cover these items without comprehensive insurance.

Learn more about glass breakage coverage

Car insurance prices in Luxembourg

If your car was insured in another country, you will likely notice a price difference when you arrive in Luxembourg.

👉 There is an average difference of 30 to 50% between car insurance in France and Luxembourg.

This difference is due to:

• Higher coverage levels
• Better claims handling
• Fewer out-of-pocket expenses

In the event of a claim, it is rare to have to pay out of pocket, except possibly for VAT.

Find all the information you need about insurance in Luxembourg