Tell me about Car Insurance

Car Insurance
 
Car Insurance is a legal and mandatory requirement for all drivers in Luxembourg. A car insurance policy essentially provides financial protection in the event of an incident which causes damage or injury to another person, vehicle, property or animal. 
 
Depending on your policy type, repair costs for damage to your own vehicle might be included as well as theft of the vehicle and damage caused by other reasons.
 
When applying for car insurance it is important you answer all questions as accurately and as honestly as possible. Failure to do so can invalidate your insurance and result in your insurer refusing to pay out if you make a claim and even withdrawing your policy. 
 
The questions you will need to answer will be on a number of different areas, all of which help insurers determine the price to cover you, i.e. your insurance premium.  
 
These questions will include:
 
Vehicle type and age – An expensive new high-powered sports car will cost you more to cover compared to a ten year old small engined hatchback.
 
How the vehicle is used – Needing to drive regularly during rush hour or having higher than average mileage can increase your premium. Similarly if your vehicle will be used for business purposes, aside from commuting to and from a single place of work, this may cause an increase in premium.
 
Age - Being a young and inexperienced driver can result in higher costs.
 
Driving history – Penalties on your licence or convictions, crashes and claims can raise your premium.
 
Voluntary excess - Offering to pay a higher excess amount on top of the compulsory amount set by the insurer, which will apply should you make a claim, can lower your premium.
 
Where you live - Living in a high crime area can negatively impact your insurance cost.
 
Additional drivers – adding young or inexperienced drivers to your policy is likely to increase your premium.
 
When purchasing your cover it is important to remember that there are three main policies types to choose from:
 
Third-party only  - This policy is the minimum legally required level of coverage for motorists in Luxembourg. It covers liability for injury to others only.
 
Comprehensive - The most wide-ranging coverage that includes everything covered by third-party, fire and theft along with medical expenses, personal effects, accidental damage, windscreen coverage and loss of or damage to your vehicle.