Everything you need to know about car insurance in Luxembourg.
What is the best car insurance in Luxembourg?
▼In October 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: based on the IPIDs of the 4 contracts analysed, it is the only one stating that no "recent licence" deductible applies when the policy is in the young driver's name, whereas AXA applies €1,250 if a recent licence is undeclared. For a new or leased car, LALUX Performance (Réparation Plus +10% up to €2,500, optional 3-year new-value cover) or Foyer Zen (full Casco + Joker Mobilité) 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 travel assistance valid worldwide (option). And for driver cover (your own bodily injury), Baloise Drive protects the driver from its base plan (optional in the 3 other contracts analysed). 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. According to its IPID, LALUX easyPROTECT Auto does not apply its "recent licence" deductible when the policy is in a young driver's name, making it a particularly relevant choice. AXA, by contrast, applies a deductible of 1,250 € if the licence is under three years and undeclared. Always check the deductible in the particular conditions and favour a plan 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 are compared here (other licensed insurers also offer car insurance): LALUX (easyPROTECT Auto, 3 cumulative plans), Foyer (mobilé — Essentiel, Clima, Protection, Special, Zen — and moov Silver/Gold, i.e. 7 plans), Baloise (Drive: Essentielle and Intégrale plans, completed by packs) and AXA (OptiDrive: Active, Active + Mini Casco and Privilège). All offer cover from liability to comprehensive, with different approaches to plans, 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 policyholder starts at level 11. Each claim-free year gains one level; each claim paid to a third party under your liability cover adds three levels. Bonus-malus is attached to the policyholder 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 cover level. These ranges are indicative orders of magnitude (Switchr estimate).
Is there a deductible on car insurance in Luxembourg?
▼Deductibles vary from one contract to another. According to its IPID, LALUX applies a "recent licence" deductible, which does not apply when the policy is in the young driver's own name; its product page and 01/2025 brochure also advertise no Casco deductible from the Confort plan, to be confirmed in the particular conditions. 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 in the event of a rate increase, within a period extended to 60 days (art. 42), or after a claim if the contract provides for it (art. 41). 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 year per household member (articles 109 and 111 LIR), a common ceiling shared with other deductible insurance premiums and debit interest. 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 policyholder, 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 claim-free year gains one level; a claim paid to a third party under your liability cover 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. Among the 4 contracts analysed, according to the IPIDs, Baloise Drive includes it in its base; LALUX, Foyer and AXA offer it as an option. The third-party + driver-protection portion is also tax-deductible, within the common ceiling of €672 per year per household member.
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 policyholder, 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 an insurer licensed in Luxembourg (for example LALUX, Foyer, AXA or Baloise) — registration in Luxembourg (SNCA) requires a third-party liability certificate. The international insurance card proves liability cover in the countries listed on it.
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 compensates it up to €1,250) 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.
Can I use my foreign no-claims bonus for car insurance in Luxembourg?
▼In principle, yes. Ask your previous insurer for a claims certificate (no-claims letter, relevé d'information or SF-Bescheinigung): Luxembourg insurers use it to place you on the statutory bonus-malus scale — from −3 (best) to 22 (worst) — according to your claim-free years, instead of starting you at level 11 like a new policyholder. Each claim-free year then gains one level and each claim paid to a third party under your liability cover adds three, and the level follows you between insurers. Registering the car with the SNCA requires a liability certificate from a Luxembourg insurer (for example LALUX, Foyer, AXA or Baloise).
Do I need to exchange my driving licence to insure and drive a car in Luxembourg?
▼An EU or EEA licence stays valid in Luxembourg with no exchange. A licence from outside the EEA must be transcribed into a Luxembourg licence within one year of taking up residence (application possible from the 185th day); after that year it is no longer valid and a theory and practical test are required. Transcription without a test is only possible for countries with a reciprocity arrangement with Luxembourg. Insurers will ask for the licence date, which also matters for the deductible: AXA, for example, applies a €1,250 deductible if a licence under three years old was not declared, whereas, according to its IPID, LALUX easyPROTECT Auto does not apply its "recent licence" deductible when the policy is in the young driver's name.
