Auto Insurance

Luxembourg law requires every registered vehicle to carry third-party liability insurance, known as responsabilité civile (RC). This covers bodily injury and property damage you cause to others in an accident. Driving without valid RC is a criminal offence that can lead to fines, licence suspension and vehicle seizure.

RC is the minimum legal requirement, but it does not cover damage to your own vehicle. That is why many drivers opt for additional levels of protection - partial CASCO or full omnium - depending on the value of their car and their risk tolerance.

Understanding the three main coverage levels helps you choose the right balance between protection and cost:

• RC (third-party liability) - Mandatory minimum. Covers damage to others only. Best for older vehicles with low market value.
• Partial CASCO - Adds theft, fire, glass breakage, storm damage and animal collisions. A good middle ground for mid-range vehicles.
• Full omnium (CASCO complète) - Covers everything in partial CASCO plus your own accident damage, vandalism and parking damage. Recommended for new or high-value vehicles.

Each level can be customised with a deductible (franchise) to lower your premium. Our advisors help you find the optimal balance for your situation.

Several factors determine how much you pay for car insurance in Luxembourg:

• Bonus-malus class - Your claims history directly impacts your premium. A clean record earns you lower classes and significant discounts.
• Driver age and experience - Younger drivers (under 25) and new licence holders typically face higher premiums due to statistical risk.
• Vehicle type and value - Engine power, purchase price and repair costs all influence your rate. Electric vehicles often benefit from specific discounts.
• Coverage level - Choosing RC only is cheapest, while full omnium with low deductible costs more but protects you fully.
• Annual mileage and usage - Lower mileage and private use usually mean lower premiums than high-mileage professional use.

Luxembourg uses a bonus-malus system where your premium decreases with each claim-free year and increases after an at-fault accident. New drivers typically start at class 11, with class 0 offering the maximum discount.

If you are moving to Luxembourg or are a cross-border worker, many insurers accept a claims-free certificate from your previous insurer in another European country. The level of recognition varies - some insurers match your foreign class directly, while others apply a partial credit. We negotiate with multiple providers to secure the best possible starting class for your profile.

Young drivers face higher premiums, but options exist: accompanied driving programmes, telematics-based policies that reward safe driving, and progressive premium structures that decrease as experience grows.

Electric and hybrid vehicles often qualify for preferential rates. Many Luxembourg insurers now offer dedicated EV tariffs that include battery coverage, charging-related damage and adapted roadside assistance.

Imported vehicles need to be registered and inspected (contrôle technique) in Luxembourg before they can be insured. If you are bringing a car from another EU country, we guide you through the process and help you find an insurer who recognises your foreign no-claims history. If you also need to protect your home, explore our home insurance solutions.