What insurance should I take out, and with which company?
When you arrive in a new country, it is important to take out adequate insurance to protect your property and loved ones. Despite its reputation as a "safe country," Luxembourg is no exception to this rule. It is important to insure your family and property properly.
Here you will find information on the compulsory and recommended insurance policies in Luxembourg to best insure your property and family.
We also provide an overview of the various insurance companies operating in Luxembourg.
Compulsory insurance in Luxembourg
To help guide you, here you will find information on the types of insurance you need to take out when you arrive in Luxembourg. Some types of insurance are compulsory, while others are recommended. We summarize the situation below.
Personal liability insurance in Luxembourg
Civil liability insurance covers damage caused to third parties by wrongful acts. It covers the policyholder, their spouse, and their unmarried children living with them.
Thanks to this insurance, all unmarried persons who do not have their own home or accommodation and who habitually live in the same household as the policyholder are insured free of charge.
This personal liability insurance covers the policyholder and their beneficiaries in various cases:
- private individuals,
- pedestrian,
- cyclist,
- athlete,
- head of household,
- homeowner,
- pet owner or keeper,
- owner or user of household and gardening appliances.
It also covers any accidents caused by snow or ice in front of your home. Remember that in Luxembourg, you are responsible for clearing your section of the sidewalk.
Home insurance in Luxembourg
Why take out home insurance in Luxembourg?
Tenants and owners should consider taking out insurance to cover their house or apartment, furniture, and personal belongings. Home insurance is essential to protect yourself against the many types of damage that can occur in the home on a daily basis.
Rental risk insurance
As a tenant or roommate, you are required to take out rental risk insurance. Rental riskinsurance covers not only the house or apartment, but also any outbuildings.
Your furniture and personal belongings are insured against fire, water damage, theft, glass breakage, and storms.
Homeowners insurance
Whether you live in your own home or rent it out, you must take out homeowner's insurance. This covers all risks of damage, fire, etc.
What does home insurance cover?
Home insurance always covers basic risks: fire, water damage, theft, glass breakage, storms, hail, and snow pressure.
Home insurance is available in several commercial packages, which vary in terms of comprehensiveness and modernity depending on the insurance company.
Home insurance can also provide coverage in the event of vandalism, terrorism, or sabotage.
Risks such as earthquakes, graffiti, theft of garden furniture or technological devices are also covered.
Damage caused by sewer backups or rainwater runoff can also be insured.
Please note that in Luxembourg, the value of your kitchen is included in the valuation of your insurance policy. Remember to include it when you calculate the amount of insurance!
Check your insurance policy regularly
Do you already have a home insurance policy to cover your home and belongings? It may be a good idea to carefully review your home insurance policy regularly.
The aim is to ensure that you are properly covered. Over the years, you have probably 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 is also a good idea to compare the coverage offered in your insurance policy with other offers on the market. Some companies provide emergency services for your home: water damage, blocked pipes, power outages, broken windows, damaged roofs, heating failures, immediate security by a professional in the event of a break-in, etc.
In the event of an incident, the company will find the right professional to resolve your problem as quickly as possible.
Car insurance in Luxembourg
Owning a motor vehicle in Luxembourg requires a number of administrative obligations. In general, after three months of residence in Luxembourg, your insurance company in your country of origin will no longer insure your car or motorcycle. You will need to find car/motorcycle insurance in Luxembourg.
We would also like to remind you that after a certain period of time, your vehicle must be registered in Luxembourg.
Under Luxembourg law, every motor vehicle must have at least third-party liability insurance.
Motor vehicle civil liability insurance
Civil liability insurance covers bodily injury and property damage caused to third parties. It 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 car insurance
Comprehensive insurance, also known as Casco, provides complete coverage for your vehicle and yourself on a daily basis. In addition to civil liability, this comprehensive car 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 "Civil Liability Motor Vehicle" insurance.
More advice on choosing your car insurance
Accident insurance
To protect yourself as well as your vehicle, accident insurance is also highly recommended. Although not mandatory, it provides compensation in the event of the insured person's death or accident. It also covers you on a daily basis in the event of hospitalization, incapacity for work, sports accidents, etc.
The best advice in this regard? Make sure that your accident insurance is comprehensive and not limited to certain categories of risk!
Supplementary health insurance
Insurance companies also offer health insurance to supplement the CNS. This supplemental health insurance is not mandatory.
Although the premiums are quite expensive, it may still be worth taking out a policy. This is because you can obtain additional reimbursement for hospitalization costs, dental care, glasses, etc. It also provides cover for major accidents in life.
Certain insurance premiums can be deducted from your tax return. They reduce the amount of taxable income.
Are you traveling soon? Find our travel insurance tips here.
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 insurance policies 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, housing 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 which insurance company 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.
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