Personal third-party liability insurance: essential for managing the hazards of life
Civil liability insurance plays an essential role in providing protection against the unexpected events of everyday life. It covers you when you cause unintentional damage to others, whether material or physical. For example, if you accidentally break an item at a friend's house, this insurance will cover the cost of repair or replacement.
It is particularly useful for families with children or pets, who are likely to cause accidents through no fault of their own. By taking out this insurance, you avoid unexpected costs that can quickly add up.
In the event of a road accident, civil liability also comes into play, but in the specific context of motor insurance, to cover damage caused to the other vehicle. This is also compulsory insurance.
To choose the right insurance, consider the specific needs of your household, such as whether you have a dog or a garden.
People covered by personal liability insurance in Luxembourg generally include all members of your household. This includes:
- Adults living under the same roof.
- Children, whether minors or students.
- Pets.
This cover also extends to people who look after your children free of charge, such as grandparents or friends.
Personal property may also be covered, particularly if you live in shared accommodation. It is important to note that this cover may even apply when you are travelling abroad.
Property damage and bodily injury covered by civil liability insurance in Luxembourg can include various scenarios. For example, if you are responsible for an accident in which someone is injured, medical expenses will be covered.
Property damage is also covered, such as the repair of a damaged vehicle or the restoration of damaged property. Here are some concrete examples:
- Repair of damaged items: a valuable vase broken at a friend's house.
- Medical expenses: injuries sustained when a third party falls at home.
Dogs and cats can sometimes cause property damage or injury to others, such as
- Bites or scratches: if your dog bites a visitor, civil liability insurance covers medical expenses.
- Property damage: a cat knocking over a valuable object at a neighbour's house can result in costly repairs.
- Accidents: if your dog causes a cyclist to fall, medical expenses and bicycle repair costs are covered.
Pets, although charming, can cause unexpected incidents, and good insurance protects you against these eventualities.
Parents are liable for damage caused by their children. Family liability insurance is therefore essential. It covers costs related to property damage or bodily injury caused to third parties by children, such as:
- Breaking a valuable item belonging to a neighbour.
- Injuring a classmate during a sports activity.
- Damage to school equipment.
Intentional acts or professions exercised outside of private life are not covered. It also does not cover you between members of the household. If your child breaks your mobile phone, this is not covered by civil liability insurance. Always check the specific terms and conditions of your contract to avoid unpleasant surprises.
As you can see, personal liability insurance, although not compulsory except for dog owners, is essential to cover any damage that you or members of your household may cause to other people. However, it does not cover you between different members of the household. So don't hesitate to take out accident insurance or check and add to the optional cover in your home insurance policy.
No, personal liability insurance (often referred to as ‘RC vie privée’ or ‘family insurance’ in Luxembourg) is not sufficient to insure a car.
Here is the distinction:
- Personal liability insurance
- Covers bodily injury or property damage that you or members of your household may cause to third parties in everyday life (e.g. your child breaks your neighbour's window, your dog causes a bicycle accident, etc.).
- It does not cover the use of a motor vehicle subject to registration.
- Motor vehicle civil liability insurance
- Compulsory in Luxembourg for all motor vehicles travelling on public roads.
- Covers damage caused to third parties in the event of an accident involving your car (injury or property damage).
- Without this insurance, you are not allowed to drive your car.
In practical terms, if you only have personal liability insurance, your car is not insured. It is essential to take out compulsory motor vehicle liability insurance.
| Criterion | Personal liability (family insurance) | Motor vehicle liability (compulsory motor insurance) |
|---|---|---|
| Nature | Optional It is compulsory if you own a dog |
Compulsory in Luxembourg |
| Purpose | Covers bodily injury and property damage caused to third parties in your private life (e.g. your child breaks a window, your dog causes an accident) | Covers bodily injury and property damage caused to third parties while using your vehicle |
| Persons covered | You and members of your household | It does not cover the driver, but it does cover damage caused to third parties. |
| Motorised vehicles | Not covered (except toys, bicycles, non-motorised scooters, etc.) | Only covers the declared and registered vehicle |
| Typical example | Your child breaks a friend's smartphone while playing | You hit another car while manoeuvring and damage its bumper |
| Legal consequences | Not compulsory but strongly recommended | Without motor vehicle liability insurance, you are not allowed to drive |
You must know that personal third-party liability insurance does not apply between people from the same household. If your child or your pet breaks your state-of-the-art phone, your personal third-party liability insurance will not pay for the damage. It only covers damage or loss caused to other people.
So, remember to check how your valuables are insured under your home policy. Did you know that additional cover may be added to your policy to protect some of your valuables against the vagaries of life?
It may also be useful to take out other insurance, such as accident insurance. Accident insurance protects you and your family if damage occurs during an accident of any kind.
As you will have understood, although personal third-party liability insurance is not compulsory (except for dog owners), it is essential in order to be covered for all the damage which you or members of your household may cause to other people. However, it does not cover you as between the different members of your household, so do not hesitate to take out accident insurance, or check and increase the optional cover in your home policy.
This text, originally published in September 2022, was updated in September 2025.
Essential coverage against incidents
Bespoke personal insurance
Private liability insurance is not compulsory in Luxembourg, unless:
- You own a dog
- You are engaged in an activity such as hunting
- You take part in pleasure boating
For vehicles, civil liability insurance is required by law, as it covers damage you may cause to third parties in the event of an accident.
Pour souscrire votre assurance responsabilité civile, prenez rendez-vous avec un agent Baloise qui évaluera vos besoins spécifiques. Vous devrez fournir vos informations personnelles, la composition de votre foyer et préciser si vous avez des animaux domestiques.
To obtain your certificate, you must contact your insurer directly.
If you lose your document, you can retrieve it by simply requesting it from your insurer.
Home insurance policies do not automatically include personal liability cover. This cover is a separate option that you can add according to your specific needs.
At Baloise, we offer this basic cover in both of our home insurance packages.
Civil liability can mainly be found in your home insurance policy. At Baloise, this cover is included in the basic package. You can also decide to take out civil liability insurance on an individual basis.
Motor vehicle liability insurance is compulsory in Luxembourg. It is different from your personal liability insurance. This cover protects other road users in the event of an accident for which you are responsible. It covers bodily injury and property damage caused to third parties, whether they are passengers in your vehicle or other people involved in the accident.
To drive with peace of mind in the Grand Duchy, you must take out motor vehicle liability insurance.
Students in Luxembourg often benefit from their parents' civil liability insurance if they still live at home.
If your child is going to study abroad, you can request an extension to your Home insurance policy to cover student accommodation abroad. Your home insurance policy will be adapted so that your child remains covered.