Cancellation conditions, notice period, letter to be sent... Those who have already tried to cancel their car or home insurance know that it is more complicated in the Grand Duchy than in other European countries.
Here are all the conditions to cancel your contract easily and change insurer.
Cancellation conditions in Luxembourg
Unlike France where you can cancel your contract on an infra-annual basis, in Luxembourg it is only possible to terminate your contract:
- At the time of the contract anniversaryYou can renew your policy within 30 days of the renewal date, i.e. one year after you took out the policy. You will normally receive a notice of the annual premium due date reminding you that your contract has been renewed. This is when you can cancel your contract.
- If the insurer unilaterally changes the tariff of your contract. Each tariff change gives you the right to cancel your contract, as the insurer changes the terms of the contract. Note that you will not be able to cancel your contract if you have asked to add options.
- If your insurer cancels one or more of the guarantees covered by your contract unilaterally. For example, if your insurer informs you that the risk of "electrical damage" is no longer covered and you still pay the same price, you will have the right to terminate your contract.
Apart from these cases, you will not be able to terminate your contract in Luxembourg. This is why it is important to compare car and home insurance before you sign your contract!
Cancelling home insurance
If you are not satisfied with the coverage of your flat or house, the first step is to find a good cover to replace your own. Then you can prepare and send your cancellation letter to your current insurer.
Finding better cover for your home
In Luxembourg, not all insurance companies offer the same coverage. There are also price differences between offers. Here are the steps to find a cover that suits you:
- Check that the most common guarantees are included in the coverage offered (including protection against natural disasters, water damage, electrical damage, fire, storm and hail, flooding, theft and burglary)
- Analyse the proposed additional coverage: Some insurers offer to cover your electronic devices and luggage when travelling abroad. Others offer to cover your hobby items, for example. Check whether these additional guarantees are included in the basic offer or whether they are optional.
- Ask for a quote: contact insurers directly and ask for price estimates. You will then have an exact price according to your home and your needs. You will be able to compare the offers accurately and choose the best one.
- Choose your insurance by finding the best compromise for you between the quality of the guarantees offered and the price of the contract.
To save time and find a better cover easily, you can compare this comparison of the best Luxembourg home insurance policies.
The best guarantees for your home
Compare all available offers in Luxembourg and save on your contract.
Sending a letter of cancellation for home insurance
Now that you have found your next insurance policy, you can cancel your current one. To do so, you must send a registered letter to your insurer within 30 days before the anniversary date of your contract (unless you are in another case mentioned above).
To write your letter, use this sample cancellation letter:
- Your contact details (Name, First name, Address, Email, Phone)
- The reference of your insurance contract
- The date you took out your contract
- A short text explaining that you are writing to request the termination of your contract with effect from the renewal date
- Date, place and your signature
It is important to send this letter in registered mail with acknowledgement of receipt This will give you proof that the letter has been received by the insurer.
If you don't know where to send this letter, you can find the contact details of all Luxembourg insurers at this page.
Cancelling your car insurance
As with a home policy, it is important to choose the best car insurance. You can save money and still get very good cover for your car. So the first step is to find the offer that suits you best.
Finding a good cheap car insurance
There are several criteria to consider:
- Key risks: the ideal is to opt for a Casco coverage (All risks, or Omnium), but these insurances are relatively expensive. If you do not choose this type of insurance, you should make sure that you are well covered against common risks: accidents, natural disasters, animal strikes on the road, theft, burglary. You will also benefit from legal protection (defence and recourse) to cover you if you are responsible for an accident.
- Services offered in the event of a claim : analyse whether the insurer offers assistance in the event of an accident or breakdown, and whether it offers a replacement vehicle (as this is not always the case)
- Additional covers : Some insurers may offer good additional cover (included or optional) that makes a difference. Valuables or electronic devices in the car at the time of the loss may be covered. Some also offer a Joker Taxi: you can take a taxi home for free if you are not able to drive (if you have had a bit of a drink after a night out with colleagues, for example!)
- Quotes : Once you have selected two or three insurers, contact them and ask for personalised quotes. This will allow you to compare prices accurately and choose the best cover for your situation.
To make it easier for you, we have compiled a comparison of the best car insurances in Luxembourg. You can consult it if you need help in your comparisons. You will save precious time!
The best cover for your car
Compare car insurance
Compare car insurances in Luxembourg and find the one that suits you!
Send a letter of cancellation
Have you found the ideal car insurance for your needs? Great, now all you have to do is cancel your contract! Here's how to do it:
- Wait until you are close to the anniversary date of your contract: because you can only terminate within 30 days of its renewal
- Write your letter with a reminder:
- Your contact details
- Your contract number
- The reason for your termination
- Date, place and your signature
- Send your cancellation letter by registered mail with acknowledgement of receipt you will have proof that your application has been received
- Take out a new car contract with the insurer of your choice!
If you do not know the postal address of your insurer, please consult this page. The addresses of all companies are listed.
Should I change my insurance in Luxembourg?
If you have never compared cover, it is important to change: you could save a lot and get better cover.
In Luxembourg, there is very little competition between insurers and there are huge differences in price. You can save up to €200 per year by choosing the best deal.
We strongly advise you to compare the different offers available in Luxembourg on this page.
Possible tax deductions
In Luxembourg, you can save several hundred euros by deducting your civil liability costs from your taxes. Here's how to do it:
- Each year, insurers send you a tax certificate giving the amount you pay in civil liability for your cover
- Transfer this amount to the Form 100 of your tax return
- Be careful to respect the deduction limits in force (672 per year for a single person for insurance and credit interest deductions)
- Send your tax return (online with your Myguichet.lu account, or by mail to your tax office). You will receive the refund within a few months (it may take a little while!).
However, as there are limits on tax deductions, you will certainly not be able to deduct everything from your taxes, especially if you have a lot of insurance and credit. That's why it's important to compare offers carefully to choose the best and cheapest cover.
Frequently Asked Questions (FAQ)
How do I cancel a contract in Luxembourg?
To terminate a Luxembourg contract, simply write a termination letter and send it by registered mail with acknowledgement of receipt. This will give you proof that the request has been received. The supplier will then be obliged to take it into account. However, you cannot cancel at any time. There are specific conditions to take into account.
What are the conditions for cancelling an insurance contract?
In Luxembourg, you can cancel your insurance contracts under 3 conditions:
1. Within 30 days before the anniversary date of your contract
2. If the insurer changes the price of your insurance
3. If the insurer decides to unilaterally remove one or more benefits from your cover
How to write a termination letter?
There are a few important things to include in your letter, such as your contact details, the reference of the contract you wish to cancel, and the reason for cancellation. You must also send your letter by the date specified in the cancellation conditions (for insurance, you must send the letter within 30 days of the renewal of your annual contract).