Before you can successfully register your car, it's imperative to navigate through a series of steps. One of them is car insurance.
What makes car insurance different in Luxembourg? What's this business about casco and mini-casco, and what do I do about cars imported from abroad? The answers to these questions and much more, in our new series sponsored by LALUX.
Cars, not people
The first thing to know about car insurance in Luxembourg: vehicles are registered for this type of insurance, not people. Anyone with a legal driver's licence in Luxembourg (read here for more details on converting your European or non-EU licence to Luxembourg) will be covered in the case of an accident or destructive event, if the vehicle has been properly insured.
Third-party liability insurance and the Green Card
Any registered vehicle (including scooters, boats, and motorbikes, for instance) requires third-party liability insurance (Responsabilité Civile, or RC), which provides cover against any damage caused by your vehicle to a third party, typically another driver.
Apply for insurance before registration, as it is a pre-requisite to get your licence plates fitted. Any vehicle discovered to be without this form of insurance will be fined. Once registered, your insurance company will provide you with a green card and proof of insurance, establishing that you, as the owner, have an insurance policy.
You must keep your insurance green card in the vehicle with you at all times (and take it with you when driving that vehicle around the EU). You will need to show it if you're ever stopped by the police and you may need it when applying for a residential parking permit at your local commune and during your Contrôle Technique (CT).
The green card will be valid for one year and a new copy should arrive in the mail every year.
Part-comprehensive (also known as Tiers Personnes or mini-casco) insurance typically includes cover for damage due to fire, glass damage, and theft. Policies tend to be more expensive than in neighbouring countries, but it also generally covers more.
For instance, glass damage cover in Luxembourg includes headlights and rear-view mirrors, which is not always the case in other places. You are also generally not charged an automatic deductible (or excess) for damage included within the policy.
Comprehensive (casco) coverage is the gold standard in the Grand Duchy. While this varies by insurer, it will likely include a 'material damage' clause, which covers you for any physical damage to the vehicle whether or not it is your fault. It may also include 'total loss' coverage, whereby - if a vehicle is written off - the insurer allows you to buy a vehicle of equivalent cost before the accident, to keep you moving.
Insurance for cars purchased outside of Luxembourg
Should you arrive in Luxembourg with a car registered in a different country or if you choose to import it from abroad, you will first need to apply for a licence registration number before you can take out a car insurance policy. Read here for other best practices when importing a car from the EU or a third country.
Car insurance providers in Luxembourg
You will be able to assess which level of insurance is right for you, using tools available on various company websites. For example, LALUX easyPROTECT auto insurance has a useful tool to help drivers determine which level is appropriate for them. Along with LALUX, other insurers in Luxembourg include AXA, Foyer, and Baloise.
Shop around to get the best deal for you, considering not only the upfront cost of the insurance but also the level of coverage. You can also make use of a no-claims bonus (Bonus Malus) of up to 13 years in Luxembourg, which can knock a chunk off your premium.
Have a safe drive and enjoy the LALUX Car Guide series on RTL Today!
LALUX Car Guide Series
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