Car insurance pricing in Luxembourg is determined by four main factors across all four licensed insurers — LALUX, Foyer, AXA and Baloise: your bonus-malus degree (the single largest lever), the value and age of your vehicle, the coverage level you select (RC only, Mini Casco, or full Casco), and insurer-specific pricing variables. Luxembourg's market is unique in that most Casco contracts carry no standard deductible, meaning claims are settled in full — a structural difference that justifies premiums 30–50% above equivalent French contracts. The RC (third-party liability) component is tax-deductible up to €672 per person per year under Article 111 of the LIR, materially reducing the effective annual cost.
LALUX easyPROTECT, Foyer mobilé and moov, AXA OptiDrive, and Baloise Drive all use the same CAA-mandated RC bonus-malus scale (degree −3 to degree 22), but set their Casco (material damage) bonus-malus independently. This means an at-fault Casco claim can affect your Casco component differently at LALUX vs Baloise vs AXA. LALUX Performance includes bonus protection that prevents one at-fault Casco claim from raising your DM degree — the only plan on the Luxembourg market to combine this with an automatic three-year Joker reset.
At the neutral starting degree (11, no bonus or malus), a mid-range vehicle in Luxembourg costs roughly €30-50/month for RC-only, €60-90/month for Mini Casco, and €90-150/month for full Casco. A driver with maximum bonus (degree -3, 45% of base rate) pays roughly half. The price difference between Luxembourg's cheapest and most expensive insurer for the same profile can reach 40%. After the Article 111 LIR tax deduction (up to €672/person/year on the RC component), the effective out-of-pocket cost is meaningfully lower.
Monthly Premiums at Each Coverage Level
Reference: mid-range vehicle (market value ~€20,000, average power), driver at degree 11 (100% of base premium). Degree -3 numbers show the maximum-bonus scenario at 45% of base.
Indicative market estimates based on publicly available insurer data and market observations — [MONTH_YEAR_CAP]. Actual premiums depend on the specific vehicle (power, value, age, fuel type), full driver profile, and options selected. These figures are not binding quotes.
Full Casco Estimates by Driver Profile
Reference: mid-range vehicle (~€25,000 value), full Casco coverage selected.
| Driver Profile | Bonus-Malus Degree | RC % of Base | Est. Monthly (Casco) | Est. Annual (Casco) |
|---|---|---|---|---|
| 🎓 New driver / first policy Licence under 2 years |
Degree 11 + possible surcharge | 100% + possible surcharge | €120–180 | €1,440–2,160 |
| 🌍 Expat, no LU history First LU policy, foreign attestation |
Degree 11 (no attestation) or 3-7 (with attestation) | 100% without — 70-80% with attestation | €75–150 | €900–1,800 |
| 🙋 Mid-career driver 5 years experience, some claims-free |
Degree 6-8 | ~70-80% | €80–120 | €960–1,440 |
| 🏆 Experienced, good bonus 10+ years, 2-3 claim-free years |
Degree 1-3 | ~50-60% | €55–85 | €660–1,020 |
| ⭐ Maximum bonus 14+ claim-free years |
Degree -3 | 45% | €45–75 | €540–900 |
| ⚠️ Driver with malus 1-2 at-fault accidents, recent |
Degree 14-17 | 130-175% | €150–230 | €1,800–2,760 |
The bonus-malus percentage scale (45% at degree -3, 100% at degree 11, progressive to 250% at degree 22) is set by the Grand-Ducal Regulation of 11 November 2003 and applies identically at all four licensed insurers. The RC% affects only the RC component of the premium; other guarantees (glass, theft, assistance) follow the insurer's own DM scale.
Luxembourg vs France: What the Premium Difference Actually Means
Why Luxembourg Premiums Are Higher — and Why That's Misleading
Luxembourg premiums run 30-50% higher than French equivalents for the same stated coverage. But three structural features make the effective cost gap much smaller than it appears:
- No deductible on Casco — French policies carry €150-€500 excess by default. Luxembourg policies: €0. Every small claim is reimbursed in full.
- Tax deduction — The RC premium is deductible under Art. 111 LIR (up to €672/person/year). At a 35% marginal tax rate, this offsets up to €235/year per person.
- Malus on RC only — After an at-fault accident, French malus raises the whole policy by 25%. Luxembourg malus raises only the RC component, leaving all other guarantees unaffected.
💰 Tax Deduction Estimator (Article 111 LIR)
Bonus-Malus Degree → RC Premium Impact
The CAA's official bonus-malus scale applies identically at all four insurers. It affects only the RC (liability) component of your premium.
| Degree | RC % of Base | Profile | Years to Reach from Degree 11 (no claims) |
|---|---|---|---|
| -3 | 45% | Maximum bonus — premium nearly halved | 14 years |
| -2 | ~50% | Excellent | 13 years |
| -1 | ~53% | Very good | 12 years |
| 0 | ~55% | Good | 11 years |
| 3 | ~65% | Above average | 8 years |
| 6 | ~75% | Average+ | 5 years |
| 9 | ~88% | Average | 2 years |
| 11 | 100% | Starting degree — new driver or new contract | 0 (starting point) |
| 14 | ~130% | 1 at-fault accident from degree 11 | — (malus) |
| 17 | ~175% | 2 at-fault accidents | — (malus) |
| 22 | 250% | Maximum malus — risk pool possible | — (malus) |
⚡ Key rule: +3 degrees per at-fault claim, -1 per clean year
A driver at degree 11 who causes an accident moves to degree 14. Recovery to degree 11 takes exactly 3 clean years. A driver at maximum bonus (degree -3) who causes one accident returns to degree 0 — still 45% below the starting rate. Recovery back to degree -3 then takes 3 more years.
What Affects Your Premium at Each Insurer
easyPROTECT — Price Drivers
LALUX does not apply a deductible for new-licence drivers if the contract is issued directly in the young driver's name (rather than a parent's name). The Réparation Plus clause in Performance adds value near write-off scenarios. Price differentials between Sécurité and Performance are significant: adding full Casco guarantees in Performance typically costs 40-70% more than Sécurité for the same driver profile. The per-vehicle value is incorporated directly into the Casco component calculation.
OptiDrive — Price Drivers
AXA OptiDrive offers limited-mileage pricing across all three tiers — declared at renewal on the odometer, no telematics device required. Brackets of 5,000 km/year and 7,000 km/year are available with corresponding discounts. AXA also offers price reductions for electric and hybrid vehicles confirmed on the official AXA Luxembourg website. The OptiDrive Privilège tier (full Casco with 36-month new-value reimbursement) is priced at a premium above Active, reflecting significantly extended coverage. Baloise Drive also offers limited-mileage (kilométrage limité) pricing — making both AXA and Baloise the relevant options for low-mileage drivers.
Drive — Price Drivers
Baloise's modular pack structure lets you build your cover incrementally — you pay for what you add, not for features you don't use. Driver personal accident protection and 24/7 assistance are included at no extra cost in both Essentielle and Intégrale — a structural pricing advantage over LALUX and AXA where these are paid options. The limited-mileage (kilométrage limité) option is confirmed available to all policyholders. For experienced drivers with a strong bonus-malus record, Baloise's base pricing tends to be competitive with LALUX easyPROTECT Sécurité for the same profile.
mobilé & moov — Price Drivers
Foyer moov (Silver/Gold) is the most price-competitive tier for drivers willing to accept partner-garage repairs and applicable deductibles. The pricing advantage of moov over mobilé is typically 15-25% for comparable coverage. Foyer mobilé Zen (full Casco with Joker Mobilité) is the top mobilé tier — competitive with LALUX Confort but without Performance's included bonus protection. For young drivers, Foyer markets moov specifically as a cost-optimised option.
Which Luxembourg Car Insurer Offers the Lowest Premiums?
No single insurer is universally cheapest across all profiles in Luxembourg. Based on market data available in [MONTH_YEAR_CAP], the pricing hierarchy varies significantly by profile:
Baloise Drive Essentielle and LALUX easyPROTECT Sécurité are the most competitive for third-party RC coverage. Baloise's structural advantage is that driver protection and 24/7 assistance are included at no extra cost — making it the better value on a like-for-like basis even if headline premiums are similar.
Foyer moov Silver can be the lowest-cost Mini Casco option for drivers who accept partner-garage repairs and applicable excesses. AXA OptiDrive Active + Mini Casco with the limited-mileage option wins for drivers under 8,000 km/year. Baloise Drive Essentielle + Pack Dommage is competitive for frontaliers and cross-border workers who want maximum assistance in the Grande Région.
Premiums at this level are closely matched between LALUX easyPROTECT Performance, AXA OptiDrive Privilège and Baloise Drive Intégrale. The differentiator is not price but coverage features: LALUX Performance includes bonus protection and an automatic Joker, making it the best value over a multi-year horizon for drivers who want to protect their DM bonus. AXA Privilège includes 36-month new-value reimbursement and Joker Taxi in all plans. Foyer mobilé Zen is modular and competitive but without Performance's included bonus protection.
Price gaps between Luxembourg's four insurers for the same profile can reach 30–40%. Always obtain at least two personalised quotes before subscribing. Request a free quote →
Pricing FAQ
For a mid-range vehicle at the starting degree 11 (no bonus): third-party RC costs €30-50/month, Mini Casco €60-90/month, and full Casco €90-150/month. At maximum bonus (degree -3), those figures roughly halve: €15-22/month for RC, €30-50/month for Mini Casco, and €45-80/month for Casco. Young drivers with less than 2 years of licence typically pay more — €120-180/month for Casco is common. The price gap between the cheapest and most expensive insurer for the same profile can reach 40%. Always get at least two quotes.
Under Article 111 of the Luxembourg Income Tax Law (LIR), the RC (third-party liability) premium is tax-deductible up to €672 per household member per year. The driver protection guarantee (conducteur protégé), if included in your policy, is also deductible. The Casco (comprehensive) portion is not deductible. This €672 ceiling is shared with other eligible insurance premiums (life, disability, health) and consumer loan interest. A household of four has a combined ceiling of €2,688. At a 35% marginal tax rate, the RC deduction on a typical policy saves €150-200 per person per year.
Premiums are 30-50% higher in Luxembourg for structural reasons: no standard deductible on Casco policies (meaning insurers pay the full cost of small claims), generally higher indemnification levels, and a smaller market limiting economies of scale. However, the effective cost difference is smaller than it appears: the zero-deductible means every covered claim is fully reimbursed (unlike France where €150-500 excess is standard); the RC premium is tax-deductible up to €672/person/year; and the Luxembourg malus system only raises the RC component — not the whole premium as in France.
No — the RC bonus-malus scale transfers automatically when you change insurer. Your new insurer is legally required to apply the degree stated on the attestation (certificate of driving history) issued by your previous insurer. There is no penalty for switching. The Casco DM bonus-malus is set by each insurer independently and may be treated differently — ask your new insurer how they handle your DM history on transfer.