At what stage do you start in Luxembourg?

Any new driver or person insuring a vehicle for the first time in Luxembourg starts at level 11, which corresponds to 100 % of the basic third-party liability premium. This level also applies to any second vehicle insured: the bonus acquired on the first vehicle cannot be duplicated. Drivers arriving from abroad can present a certificate from their previous insurer to benefit from a level lower than 11 from the outset, subject to acceptance by the Luxembourg insurer.

How long does it take to reach the maximum bonus in Luxembourg?

Starting from level 11 and without any at-fault claims, it takes 14 consecutive years to reach level -3, the maximum bonus. At this level, the liability component of the premium is reduced to 45 % of the basic premium, as confirmed by the CAA and Luxembourg insurers. The bonus increases by -1 degree per year without an at-fault claim.

How many degrees do you lose after an at-fault accident in Luxembourg?

An accident in which the driver is found to be at fault results in an increase of +3 degrees on the liability scale. For example, a driver at degree 11 moves up to degree 14, and a driver at degree -3 (maximum bonus) moves down to degree 0. It takes 3 consecutive years without an at-fault claim to return to the initial level.

Which claims do NOT affect the no-claims bonus in Luxembourg?

The following claims never increase the bonus-malus rate in Luxembourg, even if the insurer covers them: glass breakage (windscreen, windows, headlights), theft or attempted theft, fire, forces of nature (storm, hail, flood), collision with an animal, mechanical breakdown. Only accidents for which the driver is deemed to be at fault result in an increase in the third-party liability bonus.

Does my no-claims bonus change if I change insurers in Luxembourg?

No. A change of insurer has no impact on the degree of third-party liability no-claims bonus in Luxembourg. The new contract automatically takes over the current level on presentation of a certificate issued by the previous insurer. There is no penalty for changing insurer. The bonus-malus level for material damage may be treated differently by different insurers - it is advisable to check the conditions when changing insurers.

How do I transfer my no-claims bonus from abroad to Luxembourg?

To claim a foreign driving record in Luxembourg, you need to present two documents to the Luxembourg insurer: an official no-claims bonus certificate issued in the driver's name by the previous insurer, and a statement of information (claims record) covering the last 5 years. No Luxembourg insurer is legally obliged to accept a foreign bonus, but in practice all accept it for the third-party liability component if the documents are clear and authentic. Cases are dealt with on a case-by-case basis.

How does the no-claims bonus work if I have an accident abroad?

If the driver is found liable for an accident abroad and his Luxembourg insurer compensates the other party, the degree of third-party liability no-claims bonus increases by +3 degrees, as for an accident occurring in Luxembourg. Territorial cover is determined by the international motor insurance card.

Is it possible to be placed in a substandard risk pool in Luxembourg?

Yes, the Grand-Ducal regulation of 11 November 2003 provides for a substandard risk pool for drivers whom insurers refuse to insure individually because of a very high deductible or a high claims record. This pool guarantees access to compulsory third-party insurance for any driver domiciled in Luxembourg, with less favourable rates.

Bonus-Malus in Luxembourg: the complete 2026 guide

In Luxembourg, the bonus-malus system is built on two separate scales: a third-party liability (RC) scale governed by law (the CAA’s official schedule, levels from -3 to 22) and a material damage scale set freely by each insurer. Understanding this dual system can potentially cut your RC premium by more than half after a few accident-free years. This guide covers every rule, every level, and the best strategies to protect and improve your bonus.

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How does bonus-malus work in Luxembourg?

Bonus-malus is a statutory mechanism that adjusts your car insurance premium based on your claims history. In Luxembourg, it is governed by the Grand Ducal Regulation of 11 November 2003 (last amended on 29 March 2024), enacted under the Law of 16 April 2003 on compulsory third-party liability insurance. The supervisory authority is the Commissariat aux Assurances (CAA).

One crucial point to understand: unlike in France or Belgium, a malus in Luxembourg only affects part of your premium, not the total. An at-fault accident increases solely the RC component (or the material damage component, depending on the type of claim). Your other cover — breakdown assistance, legal protection, theft, glass breakage — is unaffected. Premium increases are therefore considerably more moderate than in neighbouring countries.

Good to know: claims where you are not at fault (glass breakage, theft, natural disaster, animal collision, breakdown) never affect your bonus-malus level, even when your insurer pays out.

The two separate scales

What makes Luxembourg unique is the existence of two independent bonus-malus systems. A driver can therefore hold two separate levels: one for third-party liability (RC) and one for material damage.

Criterion	RC Bonus-Malus	Material Damage Bonus-Malus
Legal framework	Mandatory — governed by the Grand Ducal Regulation of 11 November 2003 (coord. 2024)	Free — each insurer sets its own rules
Same across all insurers	✓ Yes — identical schedule and calculation	✗ No — varies by insurer
Scale (levels)	From -3 (maximum bonus) to 22 (maximum malus) — 25 levels	Varies by insurer
Starting level	Level 11 (= 100% of base RC premium)	Varies
Maximum bonus	-3 (= 45% of base RC premium)	Varies by insurer
Upward movement	−1 level per claim-free year	Varies by insurer
Downward movement	+3 levels per at-fault accident	Varies by insurer
Linked to	The driver (not the vehicle)	The driver
Transferable from abroad	Yes, on presentation of a certificate	Depends on the insurer
Cover affected	RC component of the premium only	Material damage component (Casco) only

Source: Grand Ducal Regulation of 11 November 2003 (consolidated 6 April 2024) — Chapter 4: The Bonus/Malus Scale.

The official RC schedule

The RC scale has 25 levels, from level -3 (maximum bonus) to level 22 (maximum malus). Level 11 is the starting point for every new driver and equals 100% of the base RC premium. At level -3, the RC premium drops to just 45% of the base premium — a reduction of 55%. The exact percentages for each level are set out in the Grand Ducal Regulation of 11 November 2003; level -3 = 45% is the figure explicitly confirmed by official sources.

Level	Situation	Claim-free years from level 11	Note
-3	Maximum bonus — RC premium at 45% of base	14 years	Confirmed by the CAA and insurers
-2 to 0	Very good bonus	11 to 13 years	Significant reduction in RC premium
1 to 7	Moderate to light bonus	4 to 10 years	RC premium below base rate
11	Starting level — RC premium at 100% of base	—	New driver or second vehicle
12 to 16	Moderate malus	—	RC premium above base rate
17 to 22	High to maximum malus	—	Risk of referral to the high-risk pool

Special rule: even after 4 consecutive claim-free years in Luxembourg, your level cannot be higher than 11. In other words, there is no « starting malus » for experienced drivers: the level is capped at 11 on the upside, but can be lower if your record is good.

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Impact of an at-fault claim on your premium

An accident for which you are found responsible raises your RC level by +3 steps. A driver starting at level 11 therefore moves to level 14 after their first at-fault claim. Recovery takes 3 accident-free years to return to the starting point — compared with 5 years in many other European countries.

Scenario	Level before	Level after claim	Return to previous level
New driver — 1 at-fault accident	11	14	3 accident-free years
Driver with bonus (level 5) — 1 accident	5	8	3 accident-free years
Driver with good bonus (level 0) — 1 accident	0	3	3 accident-free years
2 consecutive accidents from level 11	11 → 14	17	6 accident-free years
Maximum bonus (level -3) — 1 accident	-3	0	3 accident-free years

Before declaring an at-fault claim, compare the repair cost against the impact on your RC premium over 3 years (the recovery period). If the repair is inexpensive, it may be worth paying out of pocket to protect your level. Some policies explicitly allow this — check your general terms and conditions.

Material damage bonus-malus (Casco)

The material damage bonus-malus applies to claims for damage to your own vehicle (Mini Casco or Casco policies). There is no single legal framework: each insurer sets its own progression rules, levels, and rates freely.

In practice, most Luxembourg insurers operate a system similar to the RC scale — with some important differences. Only at-fault accidents causing damage to your own vehicle trigger this bonus-malus. The following events never affect the material damage bonus-malus: glass breakage, theft, natural events (storms, hail), animal collision, fire.

A single accident can affect both bonus-malus systems at the same time: if you cause damage to a third party AND to your own vehicle, your RC level rises for the third-party element, and your material damage level rises for your own vehicle’s damage.

What the 4 insurers offer on bonus-malus

All Luxembourg insurers apply the same legally mandated RC schedule. Their differences lie in the material damage system and the bonus protection mechanisms available in their premium policies.

Insurer	Product / Plans	Material Damage BM	Bonus protection
LALUX easyPROTECT Auto	Sécurité · Confort · Performance	Applies to Confort and Performance (material damage cover included). No material damage BM in Sécurité (no material damage cover).	Performance: one at-fault material damage claim does not increase the material damage BM level. Automatic joker after 3 claim-free years.
Foyer mobilé & moov	mobilé: Clima · Essentiel · Protection · Zen moov: Silver · Gold	Material damage BM applies to plans including material damage cover: Protection, Zen (mobilé) and Gold (moov). Clima, Essentiel and Silver do not include material damage cover.	Zen / Gold: includes a Joker Mobilité (exact terms to verify with Foyer).
AXA OptiDrive	Active · Active+Mini Casco · Privilège	Material damage BM applies to the Privilège plan only (the only plan with comprehensive material damage cover).	Options available depending on policy — contact AXA directly for details.
Baloise Drive	Essentielle · Intégrale	Material damage BM applies to the Intégrale plan (material damage included). Essentielle: no material damage cover.	Optional indemnity pack available, including material damage bonus protection — check terms with Baloise.

Sources: IPID LALUX easyPROTECT Auto, IPID Foyer mobilé, IPID Foyer moov, IPID AXA OptiDrive, IPID Baloise Drive. Exact terms vary by individual policy.

LALUX easyPROTECT — Full review → Foyer mobilé — Full review → AXA OptiDrive — Full review → Baloise Drive — Full review →

Transferring your bonus from abroad

If you are moving to Luxembourg from another country, you can present your driving history to Luxembourg insurers. The transfer is not automatic and requires the relevant documents. Insurers assess these requests on a case-by-case basis.

Bonus-malus certificate

Ask your previous insurer for an official certificate stating your current bonus-malus level or coefficient. The document must be issued in your name.

Claims history statement

In France and many other European countries, this document summarises your claims history over the last 5 years. It allows the Luxembourg insurer to assess your risk profile.

Case-by-case assessment

No Luxembourg insurer is legally required to accept a foreign bonus. In practice, all of them accept it for the RC component if the document is clear and genuine. Acceptance terms vary.

Deadline for imported vehicles

If you import your vehicle, you have 6 months from registering your arrival with your local municipality to have it registered in Luxembourg. During this period, you must maintain valid RC cover.

Moving to Luxembourg? Request your bonus-malus certificate from your previous insurer before cancelling your policy. Once cancelled, some foreign insurers can be slow to respond. The document must state your name, your level or coefficient, and the period covered.

Sources: Guichet.lu (vehicle import procedures), LALUX, AXA Luxembourg.

How to optimise your bonus-malus

Several strategies can help you protect or improve your bonus-malus level in Luxembourg.

Weigh up the true cost of making a claim

Before declaring an at-fault claim, calculate the impact on your RC premium over 3 years (the average recovery period). If the repair cost is lower than that impact, it may be worth paying out of pocket.

Choose a Casco plan with bonus protection

Most insurers offer an option or plan that includes material damage bonus protection. Following a claim, your material damage level stays the same. This is particularly worthwhile if you have a strong bonus to protect.

Your bonus cannot be duplicated for a second vehicle

Bonus-malus is personal and non-transferable. If you insure a second vehicle, it automatically starts at level 11, regardless of your level on the first. Plan accordingly.

Always claim for non-fault incidents

Glass breakage, theft, natural events, animal collisions: these claims never affect your bonus-malus level. Always report them to your insurer.

Present your certificate when switching insurer

When switching insurer, your new policy takes on your current RC level on presentation of your bonus-malus certificate. There is no penalty for changing insurer.

Explore more topics on car insurance in Luxembourg.

Car insurance — main guides

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Profiles & specific situations

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Claims

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Frequently asked questions

What level do you start at in Luxembourg?

Every new driver or anyone insuring a vehicle for the first time starts at level 11, which equals 100% of the base RC premium. The same level applies if you insure a second vehicle — the bonus earned on your first vehicle cannot be duplicated. If you are moving from abroad with a driving history, present a certificate from your previous insurer to potentially start below level 11.

How long does it take to reach the maximum bonus (-3)?

Starting from level 11 with no at-fault claims, it takes 14 consecutive years to reach level -3 (maximum bonus, -1 level per year). At this level, the RC component of your premium drops to 45% of the base, as confirmed by the CAA and Luxembourg insurers. In practice, the biggest gains come in the first few years.

Does my bonus-malus change when I switch insurer?

No. Switching insurer has no impact on your RC bonus-malus level. Your new policy automatically takes on your current level, on presentation of a certificate issued by your previous insurer. There is no penalty for changing. The material damage bonus-malus level may be treated differently depending on the insurer — check the terms when you switch.

Which claims do NOT affect my bonus-malus?

The following claims never affect your bonus-malus level, even when your insurer pays out: glass breakage (windscreen, windows, headlights), theft or attempted theft, fire, natural events (storms, hail, flooding), animal collisions, mechanical breakdown. Only accidents for which you are found responsible result in a level increase.

What is bonus protection and how does it work?

Material damage bonus protection means that an at-fault Casco claim does not increase your material damage level. It does not protect your RC level (which is governed by law). LALUX includes it in its Performance plan. Foyer offers it as a Joker Mobilité in the Zen and Gold plans. Baloise provides it through an optional indemnity pack. Check each insurer for exact terms.

How does bonus-malus work if I have an accident abroad?

If you are found responsible for a claim abroad and your Luxembourg insurer pays the other party, your RC bonus-malus level will rise by +3 levels, just as for a claim in Luxembourg. Your territorial cover is determined by your international insurance certificate (green card).

Is my Luxembourg bonus-malus recognised abroad?

Bonus-malus systems are not directly transferable: each country has its own schedule. Your Luxembourg level will not be adopted automatically by a French or Belgian insurer. However, you can present your bonus-malus certificate and the foreign insurer will assess it on a case-by-case basis. A good track record is generally recognised and tends to result in favourable terms.

Can you be placed in a high-risk pool in Luxembourg?

Yes. The Grand Ducal Regulation of 11 November 2003 provides for a high-risk pool for drivers that individual insurers refuse to cover (very high malus, heavy claims history). This pool guarantees access to compulsory RC insurance for any driver resident in Luxembourg, albeit on less favourable terms.

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