At the neutral starting degree 11 (no bonus or malus), a mid-range vehicle in Luxembourg costs roughly €30 to €50 per month for RC-only, €60 to €90 per month for Mini Casco, and €90 to €150 per month for full Casco. A driver at maximum bonus (degree -3, paying 45% of the base rate) pays roughly half of those amounts. The price difference between Luxembourg's cheapest and most expensive insurer for the same profile can reach 40%, which is why obtaining at least two quotes is always worthwhile.
After applying the Article 111 LIR tax deduction (up to €672 per fiscal household member per year on the RC component), the effective out-of-pocket cost is meaningfully lower than the headline premium suggests, especially for households with multiple eligible members.
Monthly Premiums for Each Coverage Tier
Reference profile: mid-range vehicle (market value around €20,000, average power), driver at degree 11 (100% of base premium). The figures at degree -3 illustrate the maximum-bonus scenario at 45% of the base.
Indicative market estimates based on publicly available insurer data and market observations. Actual premiums depend on the specific vehicle (power, value, age, fuel type), the full driver profile, and selected options. These figures are not binding quotes.
Full Casco Estimates Across Driver Profiles
Reference: a mid-range vehicle valued at around €25,000 with full Casco coverage selected.
| Driver profile | Bonus-malus degree | RC % of base | Estimated monthly (Casco) | Estimated 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 Luxembourg 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 claim-free years |
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, progressing 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 percentage affects only the RC component of the premium; other guarantees (glass, theft, assistance) follow each insurer's own DM scale.
Luxembourg vs France: What the Premium Difference Actually Means
Why Luxembourg Premiums Are Higher — and Why That Headline Is Misleading
Luxembourg premiums run 30 to 50% higher than French equivalents for the same stated coverage. Three structural features make the effective cost gap much smaller than it appears:
- No deductible on Casco — French policies typically carry €150 to €500 excess; Luxembourg policies carry €0. Every small claim is reimbursed in full.
- Tax deduction — The RC premium is deductible under Article 111 LIR (up to €672 per person per year). At a 35% marginal tax rate, this offsets up to €235 per year per person.
- Malus on RC only — In France, an at-fault claim raises the whole policy premium by 25%. In Luxembourg, the malus only raises the RC component, leaving all other guarantees unaffected.
💰 Tax Deduction Estimator — Article 111 LIR
How Each Bonus-Malus Degree Translates to Your Premium
The CAA's official bonus-malus scale applies identically at all four insurers. It only affects 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, with recovery to degree 11 taking exactly three clean years. A driver at maximum bonus (degree -3) who causes one accident returns to degree 0 — still 45% below the starting rate. Returning to degree -3 then takes three more clean years.
What Drives Your Premium at Each Insurer
easyPROTECT — Price Drivers
LALUX does not apply a deductible for new-licence drivers when 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 to 70% more than Sécurité for the same driver profile. The vehicle's 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 with 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. 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 a kilométrage limité option, making both AXA and Baloise relevant choices for low-mileage drivers.
Drive — Price Drivers
Baloise's modular pack structure lets you build your cover incrementally, paying only for what you add. 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 kilométrage limité option is 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 and 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 to 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 the latest market observations, the pricing hierarchy varies by coverage level and driver profile in three distinct ways.
Baloise Drive Essentielle and LALUX easyPROTECT Sécurité are the most competitive on third-party RC coverage. Baloise's structural advantage is that driver protection and 24/7 assistance are included at no extra cost, which makes it the better value on a like-for-like basis even when 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 per year. Baloise Drive Essentielle + Pack Dommage is competitive for 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 headline price but coverage features. LALUX Performance includes bonus protection and an automatic Joker, making it the better value over a multi-year horizon for drivers who want to protect their DM bonus. AXA Privilège includes 36-month new-value reimbursement and a Joker Taxi in all plans. Foyer mobilé Zen is modular and competitive but does not include LALUX Performance's bonus protection.
Price gaps between Luxembourg's four insurers for the same profile can reach 30 to 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 to €50 per month, Mini Casco €60 to €90 per month, and full Casco €90 to €150 per month. At maximum bonus (degree -3), those figures roughly halve: €15 to €22 per month for RC, €30 to €50 for Mini Casco, and €45 to €80 for Casco. Young drivers with less than two years of licence typically pay more — €120 to €180 per month for Casco is common. The price gap between the cheapest and most expensive insurer for the same profile can reach 40%, so always obtain at least two quotes.
Under Article 111 of the Luxembourg Income Tax Law, the RC 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 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 between €150 and €200 per person per year.
Premiums are 30 to 50% higher in Luxembourg for structural reasons: there is no standard deductible on Casco policies (so insurers pay the full cost of small claims), indemnification levels are generally higher, and the smaller market limits economies of scale. However, the effective cost difference is smaller than it appears: zero deductibles mean every covered claim is fully reimbursed (unlike France, where a €150 to €500 excess is standard); the RC premium is tax-deductible up to €672 per person per year; and the Luxembourg malus system only raises the RC component, not the entire 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 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.