Car Insurance in Luxembourg: What You Need to Know When Moving Here from Abroad
When you move to Luxembourg with your vehicle, you often assume that auto insurance will work the same way as in your home country. However, there are several differences that may come as a surprise to newcomers to Luxembourg, whether they’re from France, Belgium, Germany, or another country.
Recognition of no-claims discounts, terminology used by insurers, required documents, deductibles, and administrative procedures: it’s best to be familiar with these specifics before taking out a policy.
In this article, we’ll outline the key differences you need to know so you can prepare for your move with peace of mind and avoid the most common mistakes.
Car Insurance in Luxembourg: What Are the Differences for Expats?
- The way car insurance works in Luxembourg has several specific features depending on your country of origin.
- Gather certain documents before you leave to make the process easier.
- Your insurance no-claims discount may sometimes be recognized, but it is not automatically transferred.
- Take the time to compare policies and coverage options before signing up.
- To understand the different insurance options (third-party, intermediate, or comprehensive), check out our guide “Choosing Car Insurance in Luxembourg.”
Moving to Luxembourg with Your Car: What Really Changes
While the general principles of auto insurance are similar to those in many European countries, several differences may affect your move.
These specificities include the terminology used, how your insurance history is taken into account, the documents required, and certain practices unique to the Luxembourg market.
Car insurance remains mandatory
As in most European countries, any vehicle driven on public roads in Luxembourg must be covered by at least third-party liability insurance.
However, the procedures for insuring and then registering your vehicle may differ from those you are accustomed to in your home country.
Sometimes Different Terminology for Luxembourg Auto Insurance
Luxembourg insurers sometimes use terms that can be confusing to newcomers.
For example, the word “casco” commonly refers to comprehensive insurance. You’ll also encounter specific terms for certain coverages or options depending on the company.
These differences in terminology do not necessarily mean that the coverage is different, but they may require some time to get used to when comparing multiple policies.
Car insurance practices vary by insurer
Each company applies its own terms and conditions regarding the recognition of your insurance history, the documentation required, or the terms of compensation.
That’s why it’s recommended to plan ahead before your move and request several quotes so you can compare offers effectively.
Why should you arrange your auto insurance before you arrive?
Planning ahead offers several advantages:
- gathering your documentation before the move;
- facilitate the recognition of your insurance history;
- avoid delays when registering your vehicle;
- quickly obtain insurance tailored to your new situation.
Before leaving your home country: documents to prepare
Much of the paperwork related to your auto insurance can be taken care of before you move to Luxembourg. Preparing certain documents before you leave will save you time and make it easier to deal with Luxembourg insurers.
Depending on your situation and country of origin, certain documents may also help your new insurer better assess your driver profile.
The applicable rules may vary depending on your personal situation (new resident, cross-border worker, imported vehicle, vehicle purchased in Luxembourg, etc.). Don’t wait until the last few days before moving to start the process with insurers.
Request an information statement from your current auto insurer
Before canceling your current policy, ask your insurer for an information statement. This document typically summarizes your insurance history, the duration of your policy, and any reported claims.
In Luxembourg, you can request this statement when your application is being reviewed. It allows certain insurers to better assess your driving experience and can help ensure your history is properly taken into account.
Request a no-claims bonus certificate
If you have a no-claims discount in your home country, also request a no-claims discount certificate or any other equivalent document before you leave.
Whether this history is recognized depends on each insurance company’s policy. Some agree to carry over all or part of your no-claims bonus, while others apply their own evaluation criteria.
To better understand how the no-claims discount works in Luxembourg, see our article on the no-claims discount in auto insurance.
Keep your vehicle documents
Be sure to gather the key documents related to your vehicle before you move. You may be asked to provide them when you register your vehicle or take out an insurance policy.
Depending on your situation, these may include:
- the vehicle registration certificate;
- the certificate of conformity, when required;
- purchase invoices or proof of ownership;
- documents provided by your previous insurer.
Check the cancellation terms of your current auto insurance policy
Before leaving your country, find out the terms for canceling your current auto insurance policy. Notice periods and required documentation may vary depending on the insurance company and applicable laws.
By planning this step well in advance, you’ll avoid paying for two policies at the same time or, conversely, finding yourself temporarily without adequate coverage.
Documents You’ll Need to Insure Your Vehicle in Luxembourg
- Your insurance information statement.
- Your no-claims bonus certificate.
- Your vehicle registration certificate.
- Proof of vehicle ownership.
- Contact information for your previous insurer.
- A copy of your previous insurance policy, if necessary.
Having these documents ready before you move will save you valuable time when completing your paperwork in Luxembourg.
Also plan ahead for your vehicle’s registration
If you’re importing your vehicle into Luxembourg, insurance is one of the steps you’ll need to coordinate with the registration process. The two procedures are closely linked and often require you to prepare several supporting documents.
To learn about all the steps involved, consult our guide on registering a vehicle in Luxembourg.
Once you’ve settled in Luxembourg, it may be more difficult to quickly obtain certain documents from your former insurer. Be sure to request them before you leave to simplify the process and avoid additional delays.
Car Insurance Differences That Most Surprise Newcomers
Even if you’ve had car insurance for many years in your home country, certain practices in the Luxembourg market may come as a surprise. Knowing about them in advance will help you navigate the process with greater peace of mind and better understand the offers from insurers.
The term “casco” is everywhere
In Luxembourg, you’ll hear the term “casco” very often. Insurance companies commonly use this term to refer to comprehensive coverage or extended vehicle protection.
So if you come across this term when requesting a quote, don’t be surprised: it’s simply different terminology from what’s used in some other countries.
Your no-claims bonus isn’t automatically transferred
Contrary to popular belief, your insurance history does not automatically follow you when you move.
Each insurance company decides under what conditions it will recognize a no-claims discount earned abroad. That’s why it’s important to keep your supporting documents before you leave.
Deductibles can vary significantly from one insurance policy to another
Two policies offering a similar level of coverage may have very different deductibles.
Before signing, take the time to check the amount you may be responsible for paying in the event of a claim.
Not all auto insurance policies offer the same services
Assistance services, the provision of a replacement vehicle, and compensation limits can vary significantly from one insurer to another.
Therefore, comparing price alone does not always help you identify the policy best suited to your situation.
If you’re unsure whether to choose third-party coverage, intermediate coverage, or comprehensive coverage, consult our comprehensive guide, “Choosing Car Insurance in Luxembourg.” There you’ll find detailed explanations of the different coverage options and selection criteria.
Properly arranging your auto insurance makes settling into life in Luxembourg easier
By taking a few steps in advance of your move, you’ll save valuable time upon your arrival in Luxembourg. Preparing your paperwork, keeping your supporting documents, and comparing several quotes will help you approach this process with greater peace of mind.
For more information, also check out our guide on registering a vehicle in Luxembourg as well as our comprehensive guide, “Choosing Car Insurance in Luxembourg.”
Common Mistakes Made by Newcomers
- Waiting until the last minute to look for insurance.
- Forgetting to request a policy history from your previous insurer.
- Assuming that your no-claims discount is automatically recognized in Luxembourg.
- Comparing only the prices of policies without reading the coverage details.
- Failing to plan ahead for vehicle registration.
- Throwing away the documents from your old policy before the process is complete.
Checklist Before Purchasing Insurance in Luxembourg
- Request your insurance history report before leaving your home country.
- Have a no-claims bonus certificate issued.
- Gather your vehicle’s documents.
- Compare several insurance companies.
- Plan the registration process.
- Keep a copy of all your supporting documents.
FAQ: Car Insurance and Living Abroad in Luxembourg
Can I keep my foreign insurance policy after moving to Luxembourg?
The answer depends largely on your situation, your country of origin, and the vehicle registration process. Check with your insurer and the relevant authorities as soon as possible to ensure you comply with all applicable requirements.
Is my no-claims discount automatically recognized?
No. Each company has its own policy. A no-claims certificate or an insurance history statement can help expedite the review of your application.
What documents should I prepare before moving?
It is recommended that you keep your insurance history statement, your no-claims certificate, your vehicle documents, and the contact information for your previous insurer.
Do I need to insure my vehicle before registering it?
The insurance and registration processes are closely linked. Depending on your situation, proof of insurance may be required during the registration process.
Why should I request an insurance statement before leaving?
Once you’ve settled abroad, it may take longer to obtain certain documents from your former insurer. Requesting them before you leave generally simplifies the process.