Find out which insurances are mandatory in Luxembourg, and what extra coverage you need to protect your lifestyle and family while living in Luxembourg.
Knowing which insurances are mandatory in Luxembourg can be a challenge for newcomers. Which insurances are legally required in Luxembourg? Protect yourself and your loved ones by getting your Luxembourg insurances sorted out before an emergency or accident happens. The article below provides an introduction to insurance in Luxembourg for expats, including information about the different insurances, what the law requires and what you might need in addition to the mandatory Luxembourg insurances.
Here are some examples of insurance companies that provide a wide range of policies:
Car insurance in Luxembourg
If you have moved to Luxembourg with a car, it must be insured with a minimum of third party insurance to cover vehicle damage. Car insurance in Luxembourg is only applicable to residents who live in Luxembourg. Other insurances like theft, fire, vandalism are options but can be covered in a comprehensive option called Assurance Casco (www.foyer.lu). Once you receive the car insurance slip, called the green card (carte verte), it must be kept in your car at all times as proof of insurance. The third-party-insurance price depends on the car’s age and model, as well as the driver’s age and driving record.
54 route de Longwy, L-8080 Bertrange
Tel: 45 00 45-1
It is recommended to sign up for the Automobile Club de Grand-Duche de Luxembourg (ACL) in case you run into car trouble in Luxembourg. The ACL auto association helps with roadside service in Luxembourg and with Luxembourg registered cars abroad.
Boats, bikes and other vehicle insurance
Most vehicles require insurance to operate legally, including trucks, RVs, motorbikes, scooters, boats and planes. Bicycles do not need insurance.
Health insurance in Luxembourg
Healthcare in Luxembourg: The state system
The state provides free basic health coverage to all citizens, and all employed citizens and employees contribute to this system. All dependent family members are covered by family members who pay into the insurance system. Children are covered under their parents, and students are covered until age 27. Coverage includes most treatment by your general practitioner or specialists, any laboratory tests, prescriptions and hospitalization. Learn more about the social security system in Luxembourg in our article here.
Who is covered?
All employees and self-employed workers in Luxembourg are required to make social security contributions, which in turn entitles them to Luxembourg healthcare. The spouse and children of workers are also entitled to healthcare in Luxembourg, provided they also reside in Luxembourg.
Non-working foreigners and Third country nationals
Non-EU/EEA nationals may have to provide proof of private health cover before being granted a visa. Foreigners coming to live in Luxembourg without work must produce proof of health insurance in order to obtain a residence permit. If you qualify for ‘non-resident’ tax status, you may not be required to contribute to national social security, in which case you will probably be covered by your employer’s health care plan.
European Health Insurance Card
The basic state coverage does not include EHIC (European Health Insurance Card) membership. A reciprocal agreement between EU countries (plus a few more) lets EHIC carriers access urgent treatment in member countries as though they were resident there. Private health insurers in Luxembourg may be able to provide you with an EHIC card. This is not a replacement for travel insurance, but a good back up for Europeans temporary living in Luxembourg or a transition insurance while waiting for something more permanent.
In Luxembourg, dental care is covered national health insurance system. Still, many take out extra coverage if major dental work is required from private health insurance companies in Luxembourg. All dentists in Luxembourg are registered with public insurance to offer for basic dental care. Usual doctor visits can see reimbursements up to 80 or 100%. Dentists, along with medical doctors in Luxembourg, also charge fixed fees and the system is a pay up front and get reimbursed later method.
Private health insurance
If you are not covered by the state health insurance scheme in Luxembourg or want to have a higher level of coverage (e.g. private room for hospital stays), you can take out private health insurance. There are several expat-friendly international health insurance companies which offer different coverage packages, including:
Building insurance is not a legal requirement, but it is often recommended if you buy a property in Luxembourg. Your mortgage provider may insist that you have building insurance, and will often offer you their in-house deal. You are not required to take it, and more competitive options might be available if you shop around. Look for coverage that insures against natural disasters, fire, flood and other natural damages. New buildings should be already covered against defective workmanship. Apartment buildings often have insurance included in their service charges. This insurance is not a replacement for building insurance: do not make any assumptions about the coverage without fully understanding the policy details.
If you have a pet in Luxembourg, insurance for domestic dogs and cats typically covers medical expenses. It may also cover burial or cremation expenses, travel and theft. Cost examples are about €100 per year for three years of accidental coverage. This covers an accident of any kind, limited costs for hospitalization, costs to help find your pet should you lose it, ambulance costs, etc. Another examples is €600 for four years for “complete” coverage, including vet visits and vaccine costs after your pet reaches two years and older. Dogs must be chipped or tattooed and between three months and less than seven years old. Cats must be chipped or tattooed, and between three months and ten years old.
Contents, computers and jewelry: insuring your stuff
Contents insurance is not legally required in Luxembourg, and estimates suggest that up to 45% of homes are not insured. However, if you expect to rent your property or often leave your house empty – for example, if you travel – you might feel more secure with insurance. Many insurers cover portable goods (such as mobile phones, laptops and bicycles) outside the home for an additional fee.
Life insurance, unemployment and injury insurance
Health insurance in Luxembourg: Sickness benefits
If you get sick on the job, declare any sick leave to your employer. If your sickness prolongs for a few days, be ready to provide a medical certificate to your employer. To benefit from your insurance, you must get from the doctor a “temporary work incapacity form” (‘constant medical d’incapacite de travail’). Send the first sheet (filled out) to your employer, and the second sheet to the CNS (Caisse Nationale de Sante) within the first three days of your illness. What is paid is according to your salary over the past year, and will not go over the amount of five times the minimum wage.
Health insurance in Luxembourg: Disability
The Luxembourg social security system includes dependency insurance. It reimburses fees paid to aid a dependent person living at home or in a nursing home. The person in question must fall under the definition of a dependent person, i.e., due to a physical or mental illness or deficiency, they are not able perform basic acts such as bodily hygiene, nutrition and mobility. Disability benefits also apply for disabled children. Disabled adults who cannot find work or their disability hinders them are entitled to a Severely Disabled Persons Income.
Unemployment benefits in Luxembourg
In order to qualify for unemployment benefits you must be a resident in Luxembourg with a track record of having worked at least 16 hours a week. The amount and length of time one receives unemployment benefits has to do with how much they’ve earned and how long they’ve work (in EU or Luxembourg, depending) in the past. To apply for benefits, you must fill out a form and apply and a local employment office (www.adem.public.lu).
While government-run programmes assist the unemployed and disabled in Luxembourg, foreigners should check if Luxembourg’s social safety nets are available to them. You should investigate how much you might receive under a state unemployment scheme compared against the costs of life, unemployment and injury insurance. This cover can be available through your health insurance provider, pension fund, or separately. Life insurance, which pays a fixed lump sum in the event of your death, is readily available and typically affordable. Unemployment or injury insurance is typically more expensive.
A minimal level of travel insurance may be covered by private health insurance: check the level of coverage offered. Other private insurance companies offer packages, including coverage of all family members, luggage, travel cancellation, medical expenses abroad, and 24-hour assistance If you regularly travel abroad, undertake extreme sports (including skiing or cycling) or visit for extended periods you might consider topping up with specialized travel insurance. Single-trip, multi-trip and annual options are available, and can cover long trips up to 120 days. Insurance may also cover problems that arise with your trip, such as canceled flights.