Cancelling Car Insurance in Luxembourg: Complete Guide 2026
In Luxembourg, you can cancel your car insurance at the annual renewal date with 30 days’ notice (Article 38, Law of 27 July 1997), or in specific circumstances: sale of the vehicle, moving abroad, non-contractual premium increase, or a claim. Unlike France (Loi Hamon), there is no option to cancel at any time after one year. Your RC bonus-malus rating transfers automatically to your new insurer. This guide covers all legal procedures, deadlines, letter templates, the switching process, and a comparison of Luxembourg insurers.
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Compare car insurance →The 5 legal grounds for cancelling your car insurance in Luxembourg
The amended Law of 27 July 1997 on insurance contracts strictly governs the conditions for cancellation. Below is a comprehensive overview of each situation, with its deadlines and relevant legal references.
| Reason | Article | Deadline / notice | Takes effect | Refund |
|---|---|---|---|---|
| 1. Annual renewal date | Art. 38 | 30 days before renewal or within 30 days of the renewal notice | Renewal date | No (natural end) |
| 2. Vehicle sale | Art. 69 | Automatic from date of sale — notify by registered post | Day of sale (midnight) | ✅ Pro rata |
| 3. Moving abroad | Risk ceases | No mandatory deadline — notify with supporting documents | Departure date (with proof) | ✅ Pro rata |
| 4. Non-contractual premium increase | Art. 42 | Within 60 days of the insurer’s notice of increase | 1 month after notifying insurer | ✅ Pro rata |
| 5. After a claim | Art. 39 | Within 1 month of payment or refusal of indemnity | 1 month after notification | ✅ Pro rata |
Source: amended Law of 27 July 1997 on insurance contracts — Legilux.public.lu.
No equivalent to France’s Loi Hamon in Luxembourg. Unlike in France, there is no option to cancel at any time after one year of cover. Cancellation is only possible at the annual renewal date or in one of the legal situations listed above. This is the most important difference to be aware of for residents who have moved from France or for cross-border workers.
Cancellation at annual renewal (Article 38)
This is the most common scenario. Your policy renews automatically each year (tacit renewal). To bring it to an end, you need to follow a precise timeline.
Find your renewal date and renewal notice
Check your policy schedule or your most recent invoice. The renewal date is the anniversary date of your contract (often 1 January, but not always). Your insurer sends a renewal notice approximately 2 months before the renewal date. Keep the envelope — the postmark date is legally relevant.
Respect the 30-day deadline — send 35 to 37 days in advance
The standard rule: send your letter no later than 30 days before the renewal date. In practice, allow 35 to 37 days for postal delays, as it is the date of receipt by the insurer that counts. For Foyer and LALUX policies, a second window also applies: within 30 days of the date the renewal notice was sent. For all insurers (LALUX, Foyer, AXA, Baloise), cancellation is valid by registered letter, bailiff’s writ, or hand-delivered against receipt.
Take out your new insurance BEFORE cancelling
Driving without third-party liability cover is a criminal offence in Luxembourg. Take out your new policy first, then cancel the old one. Ask for the start date of the new policy to be set exactly on the expiry date of the old one. Your new insurer will apply the same bonus-malus level on presentation of your certificate.
Request your cancellation documents in the letter
In your letter, request: a bonus-malus certificate (RC and material damage where applicable), a claims history certificate covering the past 5 years, and a written confirmation of cancellation. Without the bonus-malus certificate, your new insurer will start you at level 11.
Watch out during holiday periods. In July-August and December, postal services may be slower. Add an extra week’s margin if your renewal falls during these periods. Foyer specifies in its 2025 IPIDs that you may cancel within « 30 days from the date your renewal notice was sent » — this is an independent window from the standard 30-day notice. If one window has passed, the other may still be open.
Cancellation upon vehicle sale (Article 69)
Article 69 of the 1997 Law provides that when an insured item is sold, the policy terminates automatically. This is automatic cancellation by law — no notice period is required, but you must notify your insurer.
Immediate effect at midnight on the day of sale
The policy is automatically suspended at midnight on the day the vehicle changes hands. Notify your insurer by registered post, enclosing a copy of the sale certificate. Without notification, premiums continue to be owed.
Pro-rata refund — no cancellation fee
Your insurer must refund the portion of the premium covering the period after the sale. For example, if you sell your car 6 months before the next annual renewal date, you receive approximately 6/12 of your annual premium back. No cancellation fee may be charged.
Buying a new vehicle? Consider transferring the policy
Rather than cancelling, contact your insurer to transfer the policy to the new vehicle. This avoids any gap in cover and prevents your bonus-malus from resetting to level 11. If you decide to switch insurer at this point, it is an ideal moment to compare. → Insuring a used car in Luxembourg
Cancellation upon moving abroad
Leaving Luxembourg permanently? The insured risk no longer exists, and the policy has no further purpose. This is also an automatic cancellation by law — no notice period is required.
No mandatory notice period
You may notify your insurer at any time by registered post. The cancellation takes effect on your actual departure date from Luxembourg, subject to providing supporting documents.
Supporting documents required
Your insurer may ask for: a change-of-residence certificate (issued by your local authority), deregistration of your Luxembourg number plates (SNCA), or an insurance policy taken out in your new country of residence.
Obtain your bonus-malus certificate before leaving
Make sure you request your bonus-malus certificate and claims history (5 years) before you leave. These documents allow you to demonstrate your record to an insurer in your new country — most European insurers recognise them.
Moving within Luxembourg? A change of address within Luxembourg is not grounds for cancellation. Simply inform your insurer of your new address — your policy continues as normal.
Cancellation due to non-contractual premium increase (Article 42)
If your insurer raises your premium outside of a contractually agreed increase, you have the right to cancel. This right is confirmed by the IPIDs of LALUX, Foyer, AXA, and Baloise.
Deadline: within 60 days of notification of the increase
You have 60 days from the date on which the insurer notified you of the tariff increase — in practice, the date the renewal notice showing the increase was sent — to send your cancellation by registered post.
Takes effect: 1 month after notification to the insurer
The cancellation takes effect 1 month after your insurer receives your registered letter. Your cover remains active throughout that period. The insurer must refund the premium pro rata.
Important condition: the increase must not be contractually provided for
A premium increase resulting from a rise in your bonus-malus following a claim, or any other tariff clause explicitly set out in your policy schedule, does not constitute grounds for cancellation under Article 42. The increase must be a unilateral, non-contractual tariff change. Foyer confirms this in its 2025 IPIDs.
Our view: car insurance premiums in Luxembourg have risen frequently in recent years (repair costs, parts, new vehicle values). If you receive a renewal notice with a significant increase, it is an excellent opportunity to compare insurer offers before making a decision. The full switching process is described in detail in the next section.
Cancellation after a claim (Article 39)
Following settlement of a claim, both the insurer and the policyholder may cancel the policy. This right is mutual and governed by Article 39 of the 1997 Law.
You cancel (as policyholder)
- Deadline: within 1 month of payment or refusal to pay the indemnity
- Takes effect: 1 month after sending your registered letter
- Refund: premium pro rata for uncovered days
- When to use: if you feel the claim was handled unsatisfactorily
The insurer cancels
- Deadline: within 1 month of paying the indemnity
- Takes effect: 3 months after notification to the policyholder
- Consequence: the insurer must state the reason for cancellation
- Your right: you may cancel your other policies with the same insurer if it cancels one of them
When your insurer cancels your policy
Your insurer may also decide not to renew your policy. Here are the main grounds provided for under Luxembourg law.
| Reason (insurer) | Article | Deadline / procedure | Your rights |
|---|---|---|---|
| At annual renewal | Art. 38 | Insurer must notify you 60 days before the renewal date | Check your policy schedule for the applicable deadline |
| Non-payment of premium | Art. 21–22 | Formal notice by registered post → cover suspended after 30 days → cancellation possible after 40 days | Premiums remain owed even during the suspension period |
| After a claim | Art. 39 | Within 1 month of payment — takes effect 3 months after notification | You may cancel your other policies with the same insurer |
| Intentional misrepresentation | Art. 11–12 | Cancellation possible if the insurer proves intent | If unintentional, the insurer may propose a contract amendment instead |
| Material increase in risk | Art. 13 | Within 1 month of the declaration of increased risk | Cancellation takes effect 1 month after notification |
Non-payment: be aware of the consequences. Cover is suspended 30 days after the formal notice. During this period, your vehicle is no longer insured but premiums remain owed. Driving without third-party liability cover in Luxembourg is a criminal offence. → Third-party liability insurance requirements
Has your insurer cancelled your policy, or are you looking to switch? Compare available offers today.
Compare car insurance →Complete process for cancelling and switching car insurance
Switching car insurance in Luxembourg requires following a precise timeline to ensure continuous cover and avoid any gap in protection. Here is the step-by-step process:
Compare offers before cancelling (2 to 3 months before renewal)
Find a better policy before cancelling. Compare cover options, excesses and exclusions — a cheaper policy may prove inadequate in the event of a claim. Use the Switchr comparison tool to get personalised quotes from CAA-approved insurers.
Take out the new policy first (1 to 2 months before)
Documents required: identity card or passport, driving licence, vehicle registration certificate, bonus-malus attestation from your current insurer. Ask for the start date to be set exactly on the expiry date of the old policy. Your new insurer is legally required under Luxembourg law to apply your RC bonus-malus rating.
Send the cancellation letter to your current insurer (35 to 37 days before)
Required format: registered letter with acknowledgement of receipt to the registered office (never just to your local agent). Keep the acknowledgement of receipt.
Official registered office addresses:
• LALUX — La Luxembourgeoise S.A., 9 rue Jean Fischbach, L-3372 Leudelange
• Foyer — Foyer Assurances S.A., 12 rue Léon Laval, L-3372 Leudelange
• AXA — AXA Assurances Luxembourg S.A., 1 place de l’Étoile, L-1479 Luxembourg
• Baloise — Baloise Assurances Luxembourg S.A., 23 rue du Puits Romain, L-8070 Bertrange
Addresses verified via official insurer IPIDs. Please confirm on your insurer’s website before sending.
Obtain your cancellation documents from your former insurer
Documents to receive: bonus-malus certificate (RC and material damage where applicable), claims history certificate (5 years), written cancellation confirmation. Request them as soon as you send your cancellation. Your insurer is required to provide them within the timeframes set out in the general conditions.
Forward the attestation to your new insurer and activate the policy
Provide your bonus-malus certificate to your new insurer. They are legally required to apply the same RC level. Without this document, your premium will be calculated at level 11 (full premium, 100%). Verify that the start date aligns precisely with the end of the old policy.
Check your premium refund (mid-year cancellation)
If you cancel before the renewal date (vehicle sale, relocation, premium increase, claim), your former insurer must refund the premium pro rata for the days not covered. No cancellation fee may be charged. Follow up in writing if the refund is delayed.
Bonus-malus transfer between insurers
One of the key advantages of the Luxembourg system: your RC bonus-malus rating is mandatorily transferred when you switch insurer. This legal obligation protects policyholders and makes switching straightforward.
| Element | How it works | Key points |
|---|---|---|
| RC bonus-malus | Mandatory transfer under Luxembourg law. The new insurer must apply the rating shown on the attestation. | Scale runs from -3 (best bonus) to 22 (maximum malus). Rating 11 = neutral starting point. |
| Material damage (DM) bonus-malus | DM transfer depends on the new insurer’s commercial policy. Not regulated in the same way as RC bonus. | Ask your new insurer how they take your DM claims history into account. |
| Bonus-malus attestation | Official document issued by your former insurer. States your RC rating, current period claims and DM history. | Essential. Request it as soon as you decide to switch. Your insurer must issue it upon cancellation. |
| Long-term validity | Your RC bonus-malus remains valid even without an insured vehicle in Luxembourg for several years. | Keep your old attestations safe, even after years without a vehicle. |
Source: Grand Ducal Regulation of 11 November 2003 on the bonus-malus system applicable to motor RC insurance in Luxembourg.
How does the scale work? — The Luxembourg scale runs from -3 (maximum bonus, premium reduction) to 22 (maximum malus, significant surcharge). Rating 11 is the starting point for every new driver. Each claim-free year reduces the rating by one point. Each at-fault claim increases the rating by 3 points. → Complete guide to Luxembourg bonus-malus
Potential savings from switching car insurer
Price differences between insurers for the same profile and comparable cover can be substantial in Luxembourg. Here are indicative premium ranges by cover type:
| Cover type | Typical profile | Indicative range | Key factors |
|---|---|---|---|
| Third-party (RC only) | Experienced driver, older vehicle, good bonus | ~€200 to €400/year | Bonus-malus rating, vehicle power, driver age |
| Mini Casco | Standard profile, vehicle 5 to 10 years old | ~€450 to €800/year | Vehicle value, bonus-malus, cover selected |
| Comprehensive (Casco complète) | Experienced driver, recent vehicle | ~€700 to €1,400/year | New replacement value, excess chosen, bonus-malus |
| Young driver (Casco) | New licence (under 3 years), recent vehicle | ~€1,200 to €2,500/year | Starting at rating 11, young driver surcharge, vehicle value |
Indicative ranges based on the Luxembourg market — June 2026. Only a personalised quote reflects your actual premium.
Premiums are calculated individually based on your driver profile, vehicle and cover chosen. A tailored comparison is essential to assess your actual potential saving. LALUX, Foyer, AXA and Baloise all offer online client portals to facilitate the process.
Documents required and mistakes to avoid
Documents to prepare
Documents to provide to your new insurer
- Valid identity card or passport
- Driving licence (Luxembourg or EU)
- Vehicle registration certificate
- Bonus-malus attestation from your current insurer — essential document
- Luxembourg bank details (IBAN) if you wish to pay by monthly direct debit (available with some insurers)
Documents to obtain from your current insurer
- Bonus-malus attestation — request as soon as you decide to switch
- Claims history certificate (5 years)
- Written cancellation confirmation — keep this carefully
6 mistakes to avoid at all costs
Sending the cancellation too late
Consequence: contract automatically renewed for a further year. Solution: send 35 to 37 days before renewal, as it is the date of receipt by the insurer that counts.
Requesting the bonus-malus attestation too late
Consequence: new insurer applies rating 11 by default, which can significantly increase your premium. Solution: request the attestation several weeks before renewal.
Creating a gap in cover
Consequence: criminal offence in Luxembourg. Solution: take out the new policy BEFORE sending your cancellation, with a start date set exactly on the expiry date of the old policy.
Comparing prices only, without reading the cover
Consequence: unpleasant surprises in the event of a claim. Solution: compare cover line by line and read the exclusions carefully before signing.
Sending the cancellation only to your local agent
Consequence: risk of the letter not reaching the head office within the legal deadline. Solution: always send to the registered office (addresses in the process section above).
Choosing cover that doesn’t match your vehicle
For an older vehicle of low market value, third-party or mini casco cover may be sufficient. For a new or high-value vehicle, comprehensive cover is generally recommended. Avoid overpaying for disproportionate cover, but equally avoid being underinsured.
Approved car insurers in Luxembourg — offer comparison
In Luxembourg, insurers offering car insurance are subject to approval by the Commissariat aux Assurances (CAA). Here are the main players and an overview of their offers, based on their official IPID documents:
| Insurer | Car product | Available tiers | Key features |
|---|---|---|---|
| LALUX | easyPROTECT Auto | Sécurité / Confort / Performance | Performance tier: DM bonus protection after a Casco claim included. 24/7 Top Assistance included in all tiers. 3 modular tiers with add-on options. |
| Foyer | Auto Mobilé / moov | Essentiel / Clima / Protection / Zen (Silver / Gold) | Broad range. Natural events from Clima tier. Mobility Joker included in Zen. The moov product requires repairs at a partner garage (reduced premium). |
| AXA | OptiDrive | Active / Active + Mini Casco / Privilège | New replacement value up to 36 months in Privilège. Taxi Joker included in all tiers. Pick-Up & Delivery service. Pay-per-kilometre option available. EV charging cable covered. |
| Baloise | Drive | Essentielle / Intégrale | Driver protection and 24/7 assistance from the base tier. Damage pack (theft, fire, glass, natural events, animals) included in Intégrale. Replacement vehicle for up to 60 days. |
Sources: IPID (Insurance Product Information Documents) — LALUX, Foyer, AXA, Baloise — June 2026. General and non-exhaustive information. Please refer to contractual terms for full details of cover, limits and excesses.
How to choose? — There is no universally « best » insurer: the right offer depends on your profile, your vehicle and the cover you need. Compare personalised quotes and read the IPIDs before signing. The Switchr comparison tool lets you get quotes from all CAA-approved insurers in minutes.
Special situations
Arriving in Luxembourg from abroad
Ask your foreign insurer for a no-claims certificate or claims history statement. Luxembourg insurers generally recognise European certificates, but each applies its own policy. Check directly with the insurer you wish to join.
Leased or financed vehicle
Check the terms of your leasing contract before switching insurer: some agreements require a minimum level of cover (often comprehensive) and sometimes a specific insurer. Obtain the lessor’s agreement if necessary before cancelling.
Electric or hybrid vehicle
Check that the battery, charging cable and electrical breakdowns are covered under your new policy. AXA covers the charging cable against theft (Mini Casco and Privilège tiers). Baloise offers a dedicated pack for EVs. LALUX and Foyer also offer suitable options. → Insuring an electric vehicle in Luxembourg
Your insurer cancels your policy after a claim
If your insurer cancels following a claim, other insurers will view you as higher risk. Some accept such profiles on adapted terms. Contact insurers directly to find out their acceptance criteria. Your bonus-malus (even if it has increased) must be applied by any new insurer.
Cancellation letter templates
Here are 4 ready-to-use templates, tailored to each legal situation. Copy them, fill in the fields in brackets, and send by registered post with acknowledgement of receipt to your insurer’s registered address.
📄 Template 1 — Cancellation at annual renewal (Article 38)
[Your first and last name] [Your full address] [Postcode and city] [Insurer name] [Insurer registered address] [City], [date] Re: Cancellation of car insurance policy no. [policy number] Registered letter with acknowledgement of receipt Dear Sir/Madam, I, the undersigned [Your full name], holder of car insurance policy no. [policy number] covering the vehicle registered [registration number], hereby give notice of my decision to cancel the above policy at its next renewal date, in accordance with Article 38 of the amended Law of 27 July 1997 on insurance contracts. As my policy renews on [renewal date], please take note of this cancellation, which will take effect on that date. I would be grateful if you could send me at your earliest convenience: — written confirmation of the cancellation; — a bonus-malus certificate (third-party liability and material damage); — a claims history certificate covering the past 5 years. Yours faithfully, [Signature]
📄 Template 2 — Cancellation upon vehicle sale (Article 69)
[Your first and last name] [Your full address] [Insurer name] [Insurer registered address] [City], [date] Re: Cancellation of policy no. [number] — vehicle sale Registered letter with acknowledgement of receipt Dear Sir/Madam, In accordance with Article 69 of the amended Law of 27 July 1997 on insurance contracts, I hereby notify you of the sale of my vehicle [make, model, registration number] on [date of sale]. Please find enclosed a copy of the sale certificate. I would ask you to: — cancel my policy with effect from [date of sale]; — refund the portion of the premium corresponding to the uncovered period; — send me a bonus-malus certificate and a claims history certificate (5 years). Yours faithfully, [Signature] Enclosure: copy of sale certificate
📄 Template 3 — Cancellation due to non-contractual premium increase (Article 42)
[Your first and last name] [Your full address] [Insurer name] [Insurer registered address] [City], [date] Re: Cancellation of policy no. [number] — non-contractual premium increase Registered letter with acknowledgement of receipt Dear Sir/Madam, I have been informed, via the renewal notice received on [date of receipt], of an increase in the premium for my car insurance policy no. [number]. As this increase is not provided for in my policy, I hereby give notice, in accordance with Article 42 of the amended Law of 27 July 1997 on insurance contracts, of the cancellation of my policy. I would be grateful if you could confirm this cancellation in writing and send me my bonus-malus certificate and claims history certificate (5 years). Yours faithfully, [Signature]
📄 Template 4 — Cancellation upon moving abroad
[Your first and last name] [Your current address in Luxembourg] [Insurer name] [Insurer registered address] [City], [date] Re: Cancellation of policy no. [number] — permanent departure from Luxembourg Registered letter with acknowledgement of receipt Dear Sir/Madam, I am writing to inform you of my permanent departure from the Grand Duchy of Luxembourg with effect from [departure date], which removes the insured risk. I ask you to cancel my car insurance policy no. [number] with effect from my departure date. Please find enclosed [change-of-residence certificate / insurance policy taken out in my new country / other supporting document]. I would be grateful if you could refund the premium pro rata and send me a bonus-malus certificate and claims history certificate (5 years). Yours faithfully, [Signature] Enclosure: [proof of departure]
Frequently asked questions about cancellation and switching
What is the deadline for cancelling car insurance in Luxembourg?
The main deadline is 30 days before the annual renewal date (Article 38, 1997 Law). In practice, send 35 to 37 days before to allow for postal delays, as it is the date of receipt by the insurer that counts. A second window applies for Foyer and LALUX: within 30 days of the date the renewal notice was sent. The cancellation must be sent by registered letter with acknowledgement of receipt, bailiff’s writ, or hand-delivered against receipt.
Can I switch car insurer at any time in Luxembourg?
No. Unlike France, where the Loi Hamon allows cancellation after one year, Luxembourg only allows cancellation at the annual renewal date or in specific legal cases: a non-contractual price increase, cancellation by the insurer, vehicle sale, or permanent move abroad. This is the key difference for residents from France or for cross-border workers.
Does my bonus-malus carry over when I switch insurer?
Yes. Your RC bonus-malus rating is automatically transferred. Luxembourg law requires all insurers to apply the rating stated on the attestation from your former insurer. Simply request the attestation and forward it to your new insurer. Without this document, your new policy starts at level 11 (full premium, 100%). → All about bonus-malus in Luxembourg
How do I cancel if I sell my vehicle?
The sale creates automatic termination at midnight on the day of the transaction (Article 69). Send a registered letter to your insurer with a copy of the sale certificate. Your insurer must refund the premium pro rata for the remaining days. If you are buying a new vehicle at the same time, consider transferring the policy rather than cancelling, to preserve your bonus-malus level and avoid any gap in cover.
Can I cancel if my insurer raises my premium?
Yes, if the increase is non-contractual (Article 42). You have 60 days from notification to cancel. Important: a premium increase from a normal bonus-malus rise following an at-fault claim does not constitute grounds under Article 42, as it is contractually provided for. However, a unilateral general tariff increase that is not provided for in your policy does open this right of cancellation.
Can my insurer refuse to accept my cancellation?
No, provided you meet the legal requirements: the correct grounds, the correct deadline, and the correct form (registered letter). The insurer is bound by the 1997 Law. In case of a dispute, keep all proof of dispatch (acknowledgement of receipt, postmark) and contact the Insurance Commission (CAA) or the Luxembourg Consumer Union (ULC).
How much will I be refunded if I cancel mid-year?
Your insurer must refund the premium on a pro-rata temporis basis — proportional to the remaining unused days. If you cancel 4 months before the next renewal, you receive approximately 4/12 of your annual premium back. No cancellation fee, penalty or administration charge may be applied.
Is an email sufficient to cancel, or is a registered letter required?
A registered letter is required. The official IPIDs of LALUX, Foyer, AXA and Baloise specify that cancellation must be made by registered post, bailiff’s writ, or hand delivery with receipt. An email alone is not recognised as a valid method of cancellation under Luxembourg insurance law.
Do I need to wait for my contract to end before taking out a new one?
No — and you should not. Take out your new policy before the renewal date, asking for the start date to be set exactly on the expiry date of the old policy. This avoids any gap in cover, which is a criminal offence in Luxembourg.
Does my bonus remain valid if I have no car for several years?
Yes. In Luxembourg, your RC bonus-malus is retained even without an insured vehicle for several years. Keep your bonus-malus attestations safe, even after selling a vehicle.
What happens if I stop paying my premium?
Your insurer sends a formal notice by registered post. 30 days after, cover is suspended. 40 days after the formal notice, the insurer may cancel. Premiums remain owed throughout the suspension, and driving without third-party liability cover is illegal in Luxembourg (Articles 21–22, 1997 Law).
What if I forget to cancel in time?
Your contract is automatically renewed for a further year by tacit renewal. You will need to wait until the next annual renewal date to cancel, unless your insurer makes non-contractual changes or raises prices in the meantime.
Are there any cancellation fees?
No. No insurer may charge a cancellation fee, penalty or administration charge. This is guaranteed by Luxembourg law. The only cost is the postage for the registered letter.
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