Everything you need to know about car insurance in Luxembourg.
What is the best car insurance in Luxembourg?
▼In July 2026 the best choice depends on your profile, and each profile has an objective winner. For a young driver, LALUX easyPROTECT Auto is the best value: it is the only one with no Casco deductible when the policy is in the young driver's name, whereas AXA charges up to €1,250. For a new or leased car, LALUX Performance (Réparation Plus +10%, new-value cover) or Foyer Zen (full Casco + new-value cover) best protect the vehicle's value. For a second-hand car or a tight budget, plain liability or Mini-Casco is the cheapest choice. For frequent driving abroad (cross-border workers), AXA OptiDrive wins with its worldwide travel assistance. And for driver cover (your own bodily injury), Baloise Drive protects the driver from its base formula — a rarity. Compare cover as much as price.
Which car insurance to choose for a young driver?
▼For a young driver, two criteria matter most: the deductible and bonus-malus. LALUX easyPROTECT Auto applies no Casco deductible when the policy is in a young driver's name, making it a particularly relevant choice. AXA, by contrast, applies a deductible of up to 1,250 € if the licence is under three years and undeclared. Always check the deductible in the particular conditions and favour a formula with assistance.
Is car insurance mandatory in Luxembourg?
▼Yes. Third-party liability (RC) motor insurance is mandatory for any vehicle put into circulation, under the law of 16 April 2003. It covers damage caused to third parties. Mini-Casco and comprehensive cover are optional but strongly recommended. Without a liability certificate, the SNCA will not register the vehicle.
Which companies offer car insurance in Luxembourg?
▼Four companies licensed by the CAA lead the market: LALUX (easyPROTECT Auto), Foyer (mobilé and moov ranges), Baloise (Drive) and AXA (OptiDrive). All offer cover from liability to comprehensive, with different approaches to formulas, deductibles and assistance.
What is the difference between liability, Mini-Casco and comprehensive?
▼Liability covers only the damage you cause to others. Mini-Casco adds theft, fire, glass breakage, natural forces and animal collision. Fully comprehensive cover (full Casco) also covers damage to your own vehicle, including in an at-fault accident.
How does bonus-malus work in Luxembourg?
▼The statutory scale runs from level -3 (maximum bonus) to level 22 (maximum malus). A new driver starts at level 11. Each year without an at-fault accident gains one level; each at-fault accident adds three levels. Bonus-malus is attached to the driver and transferable between insurers via the certificate.
How much does car insurance cost in Luxembourg?
▼As a guide, liability-only often costs €30–50 per month, Mini-Casco €50–70, and comprehensive €70–100 for an average profile. The actual price depends on the vehicle, bonus-malus, age, usage and formula. These ranges are market estimates.
Is there a deductible on car insurance in Luxembourg?
▼It is a Luxembourg particularity: several insurers apply no deductible on vehicle damage (Casco). LALUX, for example, has no Casco deductible when the policy is in a young driver's name. AXA, on the other hand, applies explicit deductibles (e.g. €1,250 if the licence is under 3 years and was not declared). Always check the deductible in the particular conditions.
How do I cancel my car insurance?
▼The contract renews automatically each year. You can cancel with 30 days' notice before the annual renewal, by registered letter. Cancellation is also possible within 60 days of a rate increase, or after a claim. The legal framework is the law of 27 July 1997.
What should I do after an accident in Luxembourg?
▼Complete a European accident statement with the other driver and report the claim to your insurer within 8 days. If there are injuries, call 112. The green card covers around forty countries and simplifies procedures abroad.
Is car insurance tax-deductible?
▼The liability portion and driver cover are deductible as special expenses, up to €672 per person per year (article 111 LIR), a ceiling shared with other insurance. The comprehensive (Casco) portion is not deductible.
Does Luxembourg car insurance cover you abroad?
▼Yes. The international insurance card ("green card") proves your cover in around forty countries (EU/EEA and neighbouring states). Third-party liability follows you abroad; for Casco cover and assistance, check your policy's territorial scope. After an accident in the EEA, use the European accident statement and call 112 if anyone is injured.
Do I keep my no-claims bonus if I switch car insurer?
▼Yes. The bonus-malus is tied to the driver, not the policy: your level (scale from −3 to 22) follows you. On cancellation, your insurer issues a claims record that you give to the new insurer. Each year without an at-fault accident gains one level; an at-fault accident adds three.
Does car insurance cover the at-fault driver's own injuries?
▼Not automatically. Compulsory third-party liability compensates others, but not your own injuries if you are at fault. For that you need a "driver" cover (driver protection): it covers your bodily injury in an accident you caused. Most insurers (LALUX, Foyer, Baloise, AXA) offer it as an option or in higher tiers. The third-party + driver-protection portion is also tax-deductible (cap €672/year).
How to find cheap car insurance in Luxembourg?
▼To cut the cost: (1) only take the cover you need — third-party liability alone is enough for an older car, while comprehensive mainly makes sense on a recent or financed vehicle; (2) use your bonus-malus (tied to the driver, transferable between insurers); (3) compare LALUX, Foyer, AXA and Baloise — for an equal profile the price gap between insurers can be significant; (4) adjust the deductible; (5) bundle car + home with the same insurer (multi-policy discount). The premium depends on the vehicle, the driver's profile and the cover chosen — request several quotes to compare.
Which car insurance for a cross-border worker in Luxembourg?
▼Car insurance is generally taken out in the vehicle's country of registration. A cross-border worker driving a car registered in France, Belgium or Germany insures it there. With a Luxembourg-registered vehicle (company car, or once resident), they insure it with a Luxembourg insurer (LALUX, Foyer, AXA, Baloise) — registration in Luxembourg (SNCA) requires a third-party liability certificate. The international insurance card covers driving across Europe.
Which car insurance for an electric or leased car in Luxembourg?
▼For a lease, the lessor almost always requires full Casco: LALUX Performance (Repair Plus +10%, new-value option for 3 years) and Foyer Zen (full Casco + Joker Mobilité) protect the vehicle's value best. For an electric car, two specific points need checking: short-circuit cover (AXA caps it with a €1,250 deductible) and EV-suitable towing assistance (optional at Foyer) — an EV cannot be towed like a combustion car. The bonus-malus and mandatory third-party liability apply identically whatever the drivetrain.
