Find out which types of insurance in Luxembourg are mandatory, and what extra coverage you need to protect your lifestyle and family.
Knowing which insurances are mandatory can be a challenge for newcomers to a country. Therefore, it’s important to research which insurance in Luxembourg residents need legally.
This guide provides an introduction to Luxembourg insurance for expats. It includes sections on:
- Overview of insurance in Luxembourg
- Which insurance in Luxembourg is legally required?
- Optional forms of insurance in Luxembourg
- Commercial insurance in Luxembourg
- Tools for comparing insurance in Luxembourg
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Overview of insurance in Luxembourg
Luxembourg is something of an insurance hub in Europe. Many international and cross-border insurance companies that sell to the European market are based in the country.
Insurance is seen as the third pillar of Luxembourg’s financial sector, after investment funds and banking. Around 300 insurance companies operate in Luxembourg in total, employing over 6,500 workers.
The Commissariat aux Assurances (CAA) regulates the insurance industry in Luxembourg. The Insurance and Reinsurance Association (Association Des Compagnies d’assurance – ACA) is the leading professional membership body for insurers.
For details of some of the insurance companies in Luxembourg, check out the Expatica directory of all the insurers you’ll need.
Which insurance in Luxembourg is legally required?
If you have moved to Luxembourg with a car, you must insure it with a minimum of third-party insurance (responsabilite civile) to cover vehicle damage.
In addition to this, you can also get more extensive part comprehensive insurance (tiers personnes), which also covers theft, fire, and vandalism, or fully comprehensive (assurance casco) which covers virtually everything.
Once you purchase car insurance in Luxembourg, you will need to keep the car insurance slip – called the green card (carte verte) – in your car at all times as proof of insurance.
Car insurance costs in Luxembourg depend on factors including the car’s age and model, the driver’s age, and driving history.
No claims bonuses (bonus-malus) are common, with premiums reducing for each year that no claims are made. The maximum no claims reduction is 55%.
Most vehicles require insurance to operate legally – including trucks, RVs, motorbikes, scooters, boats, and planes – but you do not need to insure bicycles.
All employees and self-employed workers in Luxembourg must make health insurance contributions through social security. This entitles them to healthcare in Luxembourg.
In addition to this, the spouse and children of workers also get free healthcare, provided they reside in the country.
Non-residents often have to purchase private health insurance in order to access treatment. EU/EEA residents can get urgent health treatment on the same basis as residents through the European Health Insurance Card (EHIC).
Non-EU/EEA nationals and anyone not entitled to state healthcare will have to take out a private insurance policy to receive medical treatment in Luxembourg. Proof of health insurance in Luxembourg is needed to obtain a visa or residence permit.
Residents in Luxembourg can also choose to take out private health insurance if they want a higher level of coverage (e.g., full medical costs covered or private room for hospital stays).
There are several expat-friendly international health insurance companies which offer different coverage packages, including:
You can read more information in our guide to health insurance in Luxembourg.
In addition to healthcare, Luxembourg’s social security system includes a range of other benefits. All employees are automatically enrolled in the Joint Social Security Centre and will make monthly contributions from their salaries. However, self-employed workers are responsible for enrolling themselves.
Insurance contributions made through social security in Luxembourg entitle you to:
- Sickness benefits
- Maternity benefits
- Disability benefits
- Family benefits
- Unemployment benefits
- Luxembourg’s old-age pension
See full details in our guide to social security in Luxembourg.
Optional forms of insurance in Luxembourg
In Luxembourg, the national health insurance system covers dental care but it doesn’t cover all treatment. Because of this, many take out extra coverage from private health insurance companies in Luxembourg if major dental work is required.
All dentists in Luxembourg register with the public insurance scheme to offer for basic dental care. Similar to doctors, dentists charge fixed fees and the system is a pay upfront and get reimbursed later method.
See Expatica’s guide to dentists in Luxembourg for more detailed information.
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. Often, they will offer you their in-house deal. However, you don’t have to take this and may be able to find a more competitive quote if you shop around.
Look for coverage that insures against natural disasters, fire, flood, and other natural damages. New buildings should already have coverage against defective workmanship.
Apartment buildings often have insurance included in their service charges, but this insurance is not a replacement for building insurance. Therefore, do not make any assumptions about the coverage without fully understanding the policy details.
You can get third-party liability insurance for either individuals or families from many providers. This covers unintentional harm or damage caused to other people or their property. Although it is not mandatory, many Luxembourg residents take out liability insurance coverage.
It is possible for you to add this insurance on to your home insurance policy. Furthermore, you can customize your policy to include or exclude different incidents or situations. However, you cannot include it in car insurance which you need to buy as separate insurance.
If you have a pet in Luxembourg, insurance for domestic dogs and cats typically covers medical expenses. In addition to this, it may cover burial or cremation expenses, travel, and theft.
Cost examples are about €100 per year for three years of accidental coverage. This covers things such as an accident of any kind, limited costs for hospitalization, costs to help find your pet should you lose it, and ambulance costs.
You can also buy comprehensive coverage from around €150 a year. This covers vet visits and vaccine costs after your pet reaches two years of age.
You must chip or tattoo any dog between three months and less than seven years old. Cats must be chipped or tattooed, and between three months and ten years old. See our guide to bringing a pet to Luxembourg for more information.
You are not legally required to have contents insurance in Luxembourg. Because of this, an estimated 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.
Costs depend on the value of what needs covering as well as the level of risk to your home. You can include contents coverage alongside home building insurance to bring down premium costs. Additionally, many insurers cover portable goods (such as mobile phones, laptops, and bicycles) outside the home for an additional fee.
Life insurance, which pays a fixed lump sum in the event of your death, is readily available and typically affordable. You do not have to have it but many Luxembourg residents take out a policy to cover their dependent relatives.
Employers often include life insurance as part of a benefits package. You can also get life insurance through your Luxembourgish health insurance provider, pension fund or separately.
Private health insurance sometimes includes a minimum level of travel 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. You can get single-trip, multi-trip, and annual coverage, and can cover long trips up to 120 days. Additionally, insurance can cover problems that arise with your trip, such as canceled flights.
Commercial insurance in Luxembourg
If you run a business in Luxembourg or work as a freelancer, you can purchase insurance to protect your business activities. You can take out individual policies tailored to your needs.
Some insurance companies offer comprehensive business insurance that combines the different types of insurance available, but premiums will vary according to needs.
Your business insurance needs will depend on factors including business type, size, and location. Some of the main commercial insurances in Luxembourg are:
- Business liability insurance – also called public liability insurance. Most businesses will need this by law, but freelancers working from home might not need it. It covers accidents and damage to third parties and their property on your business premises or caused by your business activities.
- Professional indemnity insurance – also called professional liability insurance. Covers financial loss or damage to reputation of clients caused by your professional activities or decisions. Not compulsory but recommended for many types of profession.
- Building and equipment insurance – depending on your type of business, you may need this. You can buy this as a combined package or separately as either building or equipment insurance. Covers accidental damage, vandalism, loss, and theft but will depend on the circumstances.
- Cyber insurance – protects against cyber attacks, viruses, and data theft. Optional but recommended for businesses that deal with a lot of data.
- Supplementary pension – this is available for self-employed workers to top up their Luxembourg state pension and prepare for retirement.
- Business interruption insurance – another optional insurance that covers lost revenue and running costs, including salaries, in the event of the business not being able to operate for a certain period.