Car insurance coverage in Luxembourg: complete guide 2026

1. Third-party liability — the only mandatory cover

Motor third-party liability is the only insurance made compulsory by the Act of 16 April 2003 on compulsory civil liability insurance for motor vehicles. It covers bodily injury and property damage caused to third parties in an accident for which you are at fault — including passengers in your own vehicle. Without valid third-party liability cover, no vehicle may be driven or registered in Luxembourg.

In Luxembourg, third-party liability is linked to the Green Card system of the Bureau Luxembourgeois des Assureurs Automobiles (LBAA), which guarantees cover across member countries. The premium is partially tax-deductible under Article 111 LIR (special expenses deduction).

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2. Driver protection

Driver protection fills the main gap left by third-party liability: it compensates you for bodily injury you sustain in an accident for which you are responsible. Without it, you can only receive compensation if another at-fault party reimburses you through their own liability cover. It typically covers: permanent total or partial disability, temporary incapacity to work, medical expenses not reimbursed by social security, and death (lump sum paid to beneficiaries).

3. Roadside assistance & breakdown

Assistance cover kicks in when your vehicle becomes immobilised. Two types should be distinguished: accident assistance (included in most entry-level policies) and breakdown assistance (an optional extra in most cases, included as standard only at Baloise). LALUX includes its Top Assistance — 24/7 towing following a breakdown, accident, or theft, plus repatriation of the vehicle and occupants — in all its policies, for cars only and when the vehicle is immobilised or stolen.

Replacement vehicle

The duration and conditions for a replacement vehicle vary by insurer, cause (accident, breakdown, theft, windscreen damage), and the policy taken out. Below is the documented data from official sources:

4. Fire, theft, and vandalism

These three covers form the core of Mini Casco. They protect your own vehicle against events beyond your control at the wheel. Whether they are included varies by insurer and policy.

Fire cover

Covers damage to your vehicle caused by fire: accidental fire, short circuit, lightning strike, burns, and explosion. At LALUX (Sécurité policy), fire is included in the fire and windscreen pack — covering lightning strikes, burns, and short circuits. At Foyer moov, fire is included as standard from the Silver policy onwards. At AXA, fire is included in the Mini-Casco pack. At Foyer mobilé, it is included as standard in the Protection and Zen policies, and as an option in Clima and Essentiel.

Theft cover

Covers outright vehicle theft, attempted theft with damage, car-jacking (theft by violence on a public road), and home-jacking (theft at your home). At LALUX, the theft cover also includes electronic key hacking or break-in, replacement of keys and locks, repair of the anti-theft system, and replacement of wheels, tyres, and hub caps. At Foyer moov Silver, theft is included as standard.

Vandalism

Intentional damage caused by third parties (scratches, deliberate damage) is covered under Casco policies. At LALUX Confort and Performance, vandalism is explicitly included in the vehicle damage cover, including tyre damage caused by vandalism. At Foyer mobilé, vandalism cover forms part of the material damage included in the Zen policy; at Foyer moov Gold, material damage (including vandalism) is included as standard.

5. Windscreen cover — broader scope in Luxembourg

Windscreen cover in Luxembourg is more comprehensive than in many neighbouring countries. Beyond standard glazing, it also covers headlights and mirrors. At LALUX, the scope documented in the policy comparison table is explicit: repair or replacement of the windscreen, sunshades, sunroof, mirrors, and headlights (including xenon). This level of completeness is rarely offered elsewhere.

« See T&Cs » means the exact scope is not specified in the IPID document and must be verified in the full policy terms. Only LALUX explicitly documents the full list in its public policy comparison table.

6. Natural events and animal collisions

Natural events cover damage caused by weather or geological phenomena beyond your control. At LALUX, the documented scope includes: falling rocks, storm, hail, etc. Flooding and submersion are also covered. This cover is included in the Theft, Natural Events and Animal Collision pack at LALUX (available from the Sécurité policy with the pack), and as standard in Foyer mobilé Clima, Protection, and Zen policies, as well as Foyer moov Silver and Gold.

Animal collision

Cover for collisions with stray animals (deer, wild boar, fox, etc.) is consistently paired with natural events cover in official documents. At LALUX, it is included in the same pack as natural events (Theft, Natural Events and Animal Collision pack), and activating it requires windscreen cover to also be taken out. At Foyer mobilé, animal collision is included as standard in the Protection and Zen policies, but is not mentioned as standard in Clima. At Foyer moov, animal collision is included as standard from Silver onwards. At AXA, it is included in the Mini-Casco pack (‘animal collision’). At Baloise Intégrale, it is included as standard.

7. All-risk cover — comprehensive Casco

The all-causes vehicle damage cover is the defining feature of comprehensive Casco. It covers damage to your vehicle in an accident for which you are at fault, in a collision with no identifiable third party, or when leaving the road. Without this cover, no compensation is available if you are the sole party at fault.

At LALUX, vehicle damage cover (available from Confort onwards) includes: material damage from an accident or vandalism, misfuelling, tyre damage including vandalism, damage caused by rodents (stone martens), airbag reset and direct settlement of the repair invoice. The Performance policy adds Réparation Plus: if the repair cost approaches total loss, the compensation is increased by 10% of the replacement value (up to €2,500) to avoid the vehicle being written off.

8. Notable optional extras

Comprehensive legal protection

Separate from basic legal defence and recovery, comprehensive legal protection covers vehicle-related disputes across a wider scope: contesting a fine, disputes with a garage, criminal defence, and debt recovery. At LALUX, the full Legal Protection option is available across all policies (up to €10,000 in costs and fees). At AXA, basic legal protection (defence and recovery) is included in all three policies; a broader ‘comprehensive legal protection’ option is available as a standalone add-on. At Foyer mobilé, legal defence or protection is an optional extra depending on the policy.

Taxi Joker — emergency transport

Several insurers cover taxi journeys when you are unable to drive (accident, intoxication, injury, loss of glasses):

Pick-Up & Delivery (AXA)

AXA offers an exclusive service: following a covered accident and if your vehicle is still driveable, AXA provides a replacement vehicle, collects your car, has it repaired, and returns it to you wherever and whenever you choose. This service eliminates the need to travel to a garage entirely.

Personal effects and luggage

At LALUX, the luggage and personal effects cover includes: roof racks, child seats, roof box contents, smartphones, GPS devices, and personal belongings. Available as an option across all policies. At AXA, personal items are included in Active+Mini Casco (€1,000) and Privilège (€3,500) policies. At Foyer moov Silver, the ‘Mes objets’ option is available. At Baloise, luggage and transported goods form part of the Mobility Pack (€500 level 1 / €1,000 level 2 / €3,000 level 3).

Baloise Indemnisation Pack

The Baloise Indemnisation Pack is available exclusively with the Intégrale policy. It includes two elements: vehicle buy-back at purchase or appraised value depending on the vehicle’s age, and no-claims protection on material damage cover in the event of a claim — the latter being provided free of charge if you have already reached the maximum bonus (-3).

Electric and hybrid vehicles

LALUX offers a special electric and hybrid vehicle option covering battery diagnostics, decontamination, and recycling following a claim. AXA covers the traction battery under its material damage cover (Privilège policy), and confirms that the charging cable is covered in the event of theft (€500 under Active+MC, €1,000 under Privilège). AXA also covers the home charging point through the OptiHome home insurance policy.

Baloise Aménagement Pack

Baloise offers a three-level Pack Aménagement to cover equipment added to the vehicle: accessories and vehicle wrapping (€500 / €1,500 / €5,000) and specific fittings (€5,000 / €10,000 / €15,000). This pack covers custom wraps, modified suspension, and leisure or professional equipment.

Mileage-based policy

Two insurers offer a mileage option for low-mileage drivers. At AXA, the mileage-based policy allows you to declare a mileage band and benefit from a premium reduction; mileage is declared without a black box, based on the odometer. At Baloise, limited mileage is also available and open to all driver profiles.

9. Cover comparison by insurer

Summary of key cover types based on the IPIDs and official documents of the four insurers. The columns show the position for each insurer’s entry-level policy (minimum policy, excluding comprehensive Casco). ‘Optional’ means the cover is available but not included as standard.

10. Frequently asked questions about car insurance cover

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