Choosing the right car insurance: 7 things you need to know?
Are you arriving in Luxembourg with your own car or do you need to buy one locally? It is important to note that car insurance is mandatory in Luxembourg. Make sure you are well informed, as there are likely to be many differences compared to your country of origin. Pricing, deductible systems, comprehensive insurance coverage... Let's take a look at the most important information with our partner.
Insure your car before registering it
When you arrive in Luxembourg with your car, you must register it within six months of your arrival. To do so, you will need to provide a certificate of insurance. The steps must be taken in the following order:
Only after completing these steps will you be able to have your new license plates installed.
Find all the steps you need to take to register your car in Luxembourg here.
Get the best coverage with comprehensive insurance
Casco is a very common term in Luxembourg. What does it mean? Insuring your car with Casco simply means that you have the best possible level of insurance coverage. Casco insurance is the equivalent of Omnium insurance for Belgians. The French refer to it as all-risk insurance.
Please note that this level of optimal coverage may differ from one country or insurer to another. Check with your insurance company for more information.
Car deductibles are not standard, so ask for one!
You may be used to always having to pay an excess in the event of material damage to your car. The excess involves paying part of the repair costs out of your own pocket when they exceed a certain threshold.
However, with some insurers, such as AXA, you canrequest an excess when you take out your policy. This allows you to reduce the amount of your premium.
Glass breakage coverage is not limited to windows.
In some neighboring countries, repairing a mirror or headlight is only covered by the insurer if the insured has comprehensive insurance.
In Luxembourg, it is not necessary to take out comprehensive insurance for this. Glass breakage coverage is sufficient to cover this type of damage without applying a penalty.
Car insurance is more expensive in Luxembourg.
If your car was previously insured in another country, you may notice a significant difference in the price of your new insurance. For example, there is a difference of 30 to 50% between the cost of French car insurance and Luxembourg car insurance.
This may come as a surprise. However, this difference can be explained by the higher levels of insurance coverage.
In the event of a claim, it is rare to have to pay out any money in Luxembourg. You may have to pay VAT.
Roadside assistance for your car is optional
It is important not to confuse accident assistance with breakdown assistance. Accident assistance is automatically included in most insurance policies. If your vehicle is immobilized following an accident, your insurer will provide assistance without any problem.
However, in the event of a breakdown (running out of fuel, misfueling, flat battery, etc.), you must have taken out an option to be entitled to a tow truck. Think about it, especially since it is not the most expensive option.
Find all the details of the car assistance offered by AXA Luxembourg here : breakdown assistance in the event of an accident, breakdown, or flat tire, oil change and towing in the event of misfueling, and vehicle opening in the event of lost or forgotten keys.
The rules for calculating no-claims discounts in Luxembourg
Although the bonus-malus system is used throughout Europe, each country has its own regulations. It is important to be familiar with the rules in Luxembourg in order to fully understand how your premium will change over time.
For example, most insurers in Luxembourg use two scales. One relates exclusively to civil liability. It changes according to the damage you cause to third parties in accidents for which you are liable. The other relates to material damage to your own vehicle, caused by yourself or by an unidentifiable third party.
A two-scale system means that in the event of a penalty, the associated percentage increase is applied only to part of your premium. This depends on the type of accident that occurred.
For example, if you damage your door against a wall, a Material Damage penalty will be applied. It is the part of your premium related to Material Damage coverage that will increase. The rest of your premium will remain unchanged. The premium increase is therefore less significant.
Find out more about how the bonus-malus system works in Luxembourg here.
If you come from France, Belgium, Germany, or Portugal, you can claim the bonus you had in your country of origin in Luxembourg. To do so, simply provide your new insurer with a bonus-malus certificate.
How to choose the right car insurance. Find advice from our expert.
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