The bonus-malus scale aims to encourage responsible driving and penalize bad drivers. Although this system is used throughout Europe, each country is free to implement it.
How does it work in Luxembourg? Is it possible to use the bonus acquired in another European country? An overview of how the bonus-malus system works in Luxembourg with our partner Axa assurances Luxembourg .
A car insurance system based on two distinct scales
The bonus-malus system is a European practice designed to encourage responsible driving. The car insurance premium paid to the insurer increases in the event of an at-fault car accident.
Bonus-malus scales apply to at-fault accidents. Damage to the vehicle caused by adverse weather conditions, a knocked-over animal, broken windows, theft or breakdown will not affect the bonus-malus rate. Even if the insurer covers them.
In Luxembourg, most insurers apply two separate scales. The policyholder can therefore have two levels of bonus-malus, for different types of claim.
Third-party liability bonus-malus scale
It evolves in the event of damage caused to a third party following an at-fault accident. This scale is legal. All insurance companies apply the same rules for varying the degree of bonus-malus and increasing the car insurance premiums paid to the insurer.
Material damage bonus-malus scale
It evolves according to the damage caused on your own vehicle. There is no legal framework here. Each insurance company sets its own rules.
A more advantageous insurance system in Luxembourg
In Luxembourg, the bonus-malus rate applies only to the cover in question. It has an impact on Civil Liability coverage, if the accident is the fault of a third party. It modifies the Material Damage cover if the damage is caused to your own vehicle.
Simply put, a malus will only increase part of your insurance premium, not all of it. This means that increases are often gentler in Luxembourg than in France, for example.
How do car insurance premiums change?
The legal liability bonus-malus scale goes from -3 (best bonus) to 22 (biggest malus). 11 is the basic degree assigned to a new driver.
Over the years and with each claim, the premium for civil liability coverage has evolved as follows:
For each at-fault accident, your degree increases by 3 points the following year. Conversely, every year without a claim brings you down 1 degree.
Let’s take the example of a driver starting at 11. After 5 years without an at-fault accident, its grade has been raised to 6. If in the sixth year he causes an accident, his grade goes back up to 9.
Claiming your car bonus earned abroad
You arrive in Luxembourg and you wonder if it is possible to keep your bonus acquired for so many years abroad?
It all depends on your country of origin. Car insurance systems vary from country to country. However, equivalents exist with France, Belgium, Germany and Portugal.
To benefit from your previous bonus on your new insurance in Luxembourg, simply provide your new insurer with a bonus-malus certificate issued by your previous insurance company.