Change Edition

All you need to know about insurance
Cover

All you need to know about insurance

by Sarita Rao 6 min. 10.08.2021
Which insurance is mandatory in Luxembourg and what cover should you get?
Buildings insurance is not a legal requirement in Luxembourg Photo: Guy Jallay
Buildings insurance is not a legal requirement in Luxembourg Photo: Guy Jallay

Certain insurance cover is mandatory in Luxembourg. Some types are not, but it's advised you get them anyway.

Here's a look at car, home, health and pet insurance, with advice on mandatory requirements and the options available to you, plus links to insurers and comparison websites. 

Car Insurance

It's mandatory to have third party insurance for your car if you live in Luxembourg, to cover against damage to third party property from an accident. This insurance is called Responsabilité Civile or RC.

Tiers Personnes is more comprehensive and covers third party, fire and theft damage.

Casco or Tous Risques is akin to fully comprehensive and will cover most things including windscreen damage.

If you want your policy to repair scratches or dents you get in public car parks (common in Luxembourg), you'll need to pay a higher premium.

Fully comprehensive cover from a Luxembourg-based insurer is expensive (although you may find that you have no excess to pay in the event of a claim). Premiums take into consideration the make, model, power and age of your car. Casco is probably worth it if you have a brand- or fairly new car, RC if you're driving an old banger.

Just remember that if you want to cancel your car insurance you must give three months' written notice.

Shop around because quotes will vary depending on your age, gender and length of Bonus Malus (no claims bonus) which can give you a reduction of up to 55% on annual premiums. If you're coming from overseas, your current insurer must provide a letter stating the total years of no claims you have accumulated.

Ask them to be specific if possible, as in some countries the maximum no-claims discount is five years, but in Luxembourg you can get discounts for up to 13 years of no claims.

You must keep your Green Card insurance slip in your car at all times. It also covers you for other EU countries.

Note that car insurance does not include breakdown recovery and you should organise this separately with the ACL or another provider.

If you have a motorbike, scooter or boat, you'll need a minimum of third-party cover for these too, but not for your bicycle. Cycle theft, particularly from shared apartment garages, is on the rise, so consider insurance, registering your bike ID with the police and tracking options.

Home insurance

Surprisingly, given how high property prices are in the Grand Duchy, buildings insurance is not a legal requirement. However, many mortgage providers will not loan you money without this insurance.

You should shop around for combination policies that cover both buildings and contents.

Basic coverage will include natural disasters such as fires or floods, and it may be tempting to miss out theft, but burglary is still prevalent in Luxembourg. 

Flooding has occurred in many regions in recent years so it's advisable to add water damage to your contents policy. You can also insure your laptop, mobile and bicycle on your home policy.

If you've bought a new build property less than 10 years old you will need insurance to cover against defective workmanship. If you live in an apartment building your buildings insurance may be covered in your service charges but you should check exactly what is covered.

If you rent your home (tenant or landlord), you don't have to take out insurance, but tenants might be liable for any damage caused to the property during a rental contract, and likewise, landlords may need to pay for damage to a property as a result of flooding. You can find full details on liability on WortImmo

Health insurance

If you are a Luxembourgish citizen or you are employed or self employed in Luxembourg, and pay social security, then you (and your family) will be covered for most basic healthcare by the CNS or National Health Fund.

For EU citizens, the European Health Insurance Card provides cover for urgent treatment, but not day to day dental or medical treatment.

Non-working foreign residents need to have proof of private health insurance to obtain a residence permit, and for those coming from outside the EU/EEA and Switzerland, including students, you'll need private health insurance to get a visa.

The CNS does not fully reimburse all dental treatment or private hospital rooms Photo: LW Archive
The CNS does not fully reimburse all dental treatment or private hospital rooms Photo: LW Archive

Private health insurance should reimburse you some or all of the cost of visiting a doctor, dentist, treatment in hospital, medication, specialist care and laboratory tests.

Even if you are a member of the CNS, you can take out health insurance to cover additional costs of hospitalisation, dental treatment, eye care and treatment outside the Grand Duchy. You can find out more about what the CNS covers here.

The CNS also provides cover for sickness, injury and disability, but you should review whether payments will cover your cost of living expenses and consider taking out additional insurance.

Pet insurance

Medical expenses, vet visits and vaccinations can mount up if you have a dog or cat. Unfortunately, your choice of insurers in Luxembourg is limited to AXA and Willis Towers Watson (part of the same group as AXA). Your pet must be microchipped and you won't get cover for a dog that is more than seven years old or a cat that is more than 10 years old.

Private liability insurance is not mandatory in Luxembourg but you can take it out to cover you in case someone gets hurt at your property. It also covers damage caused by your pet.

Where to find insurance providers

You can find a list of non-life insurers (home and car) in Luxembourg here, and a list of life assurers here.

For comparison websites try Topassur.lu or Assurances.lu .


The Luxembourg Times has a new LinkedIn page, follow us here! Get the Luxembourg Times delivered to your inbox twice a day. Sign up for your free newsletters here.


More on this topic

Ready to buy a property in Luxembourg? Then you'll need a mortgage. Here's how to get one and the types of mortgage available
You might be able to secure a lower deposit (normally 20-30% of the total property value) if you have assets that can act as a guarantee
If you're opening a bank account in Luxembourg, or plan to change banks, here's what to do, including tips for US citizens
(Gerry Huberty)