Bonus-malus Luxembourg: how does the bonus-malus scale work and its impact on your car premium?
- Civil liability cover is mandatory in Luxembourg for any vehicle on the road
- Every insured starts at degree 11 (100% basic premium)
- The legal CL scale ranges from degree -3 (maximum bonus) to degree 22 (maximum malus)
- Each year with no claim responsibility = -1 degree (bonus)
- Each claim with responsibility = +3 degrees (penalty)
- After 4 years without a claim, the degree automatically returns to 11
- The casco/mini-casco cover follows a separate scale, specific to each insurer
↓ What is the bonus-malus in car insurance in Luxembourg?
↓ The essentials of car insurance in Luxembourg
↓ What is the bonus-malus system in Luxembourg?
↓ Bonus-malus in casco and mini-casco
↓ What other factors influence your auto insurance premium?
↓ How to obtain a bonus-malus certificate in Luxembourg?
↓ FAQ - Bonus-malus in Luxembourg
The bonus-malus is a personalization system of the car insurance premium based on the driving behaviour of the insured. It is expressed in the form of bonus-malus degrees: the lower your degree, the lower your premium (bonus); the higher it is, the higher your premium (malus).
In summary: the bonus-malus rewards drivers without claims.
Before going into the details of the bonus-malus system, a few key concepts:
- Automobile liability insurance (CL auto): CL auto is mandatory in Luxembourg for any vehicle on the road. It covers personal injury and property damage caused to third parties in the event of an accident for which you are responsible.
- The deductible: the deductible is the part of the claim that remains the responsibility of the insured. It does not affect your bonus-malus degree but reduces the amount reimbursed by the insurer.
- The international car insurance card (commonly called the green card because it was green for many years. Since 2020, insurers have been authorised to issue it in black and white). Your Luxembourg car insurance is valid in all the countries mentioned on the back of your international green card.
- The "out of circulation” plan: if you suspend your contract, you are no longer covered in the event of a claim. The "out of circulation" plan is an alternative that maintains certain guarantees (fire, theft, broken glass) when your vehicle is immobilized, without loss of your minimum cover.
- Casco: or all-risk or omnium insurance, it covers property damage to your own car in the event of an accident. The damage covered by a casco can be more or less extensive depending on the chosen formulas.
- Protected driver: it covers the driver, for bodily injury in a road accident, whether he is responsible or not.
The Luxembourg bonus-malus system is based on a scale of degrees defined by the Grand-Ducal Regulation of 11 November 2003, which applies to all insurers for the CL part. Each insured is assigned a degree that evolves according to their driving history.
A new policyholder starts at degree 11. Each year without a claim involving your responsibility allows you to go down one degree. Conversely, each responsible accident leads to a 3-degree rise. The scale ranges from degree -3 (best) to degree 22 (least favourable).
Each degree corresponds to a percentage of the basic CL premium. Here is an overview of the key levels (Note: this legal scale applies only to the civil liability party. Cover for property damage follows rules specific to each insurer.):
| BONUS-MALUS Degree | % of the basic CL bonus | Typical situation |
|
-3 |
45 % |
Driver without incident for 14 years or more |
|
0 |
60 % |
Experienced driver with no recent claims |
|
11 |
100 % |
New driver or first contract |
|
14 |
130 % |
Driver with 1 claim involving his responsibility |
|
22 |
250 % |
Driver with multiple claims involving his responsibility |
Every new policyholder starts at degree 11, which is 100% of the base premium.
The progression of your bonus-malus degree is calculated over an observation period of 12 months, ending 1 month before the anniversary date of your contract.
Concrete example: for a contract having an anniversary date of 1 January, the observation period runs from 1 December N-1 to 30 November N. Claims occurring after 1 December are only taken into account the following year.
- No claims: each year without a claim with responsibility leads to a 1 degree drop, therefore a reduction in your premium.
- With claim: Each claim with responsibility reported during the observation period results in a 3-degree rise, which increases the premium.
- The 4-year rule: after four consecutive years without a claim, the applicable degree may not exceed 11.
Only claims where you are found liable affect your degree. Events such as ice breakage, theft, natural disasters or collisions with an animal are not taken into account, even if your insurer compensates them.
Example: If you are at degree 8 and you cause an accident, you go to degree 11 (8 + 3). If you then go four consecutive years without a claim, your degree automatically drops back to 11. However, the exact evolution may depend on the terms of the contract.
In Luxembourg, there are two distinct bonus-malus scales: the civil liability (CL) scale, set by law, and the property damage scale, freely defined by each insurer.
Property damage cover covers damage to your own vehicle, depending on the guarantees subscribed (breakdown assistance, property damage, theft, fire, glass breakage, natural events, animals). These formulas have their own bonus-malus scale, independent of that for CL.
Concretely, a claim in casco can change your degree of property damage without affecting your CL degree, and vice versa. The precise rules may vary between insurers, while generally relying on principles similar to civil liability.
The bonus-malus degree is the main factor of personalization, but other elements enter into the calculation of your bonus:
- The make and model of the vehicle (engine capacity, value, claims statistics)
- Use of the vehicle (private, professional, annual mileage)
- Driver profile (age, duration of license)
- The guarantees subscribed (liability only, property damage, defence of claims, etc.)
- The deductible chosen, if offered by your insurer.
These criteria vary from one company to another in Luxembourg. It is advisable to compare several offers before subscribing or renewing your contract.
If you change insurers or arrive in Luxembourg from abroad, you will need an official bonus-malus certificate. This document summarizes your claim history and current level. To obtain it, contact your current or previous insurer, who is required to provide it to you on request, by email or by post.
Luxembourg insurers generally recognise equivalences with other European countries such as Belgium, Germany or the Netherlands. You will then need to submit an information statement covering the last five years. This document allows your new insurer to evaluate your profile and offer you a suitable premium.
If you have never been insured before, you will start directly at degree 11, without any certificate to be provided.
If you would like to find out more about registration procedures, specific cover options or tips on choosing the right cover, please take a look at our Guide to car insurance in Luxembourg. You’ll find all the information you need to drive safely and with complete peace of mind.
All new car insurance policyholders start at degree 11, corresponding to 100% of the basic premium, without bonuses or penalties.
Each claim involving your responsibility results in a 3-degree bonus-malus increase, which increases the percentage of the base premium to be paid.
In the absence of a claim involving your responsibility, the bonus-malus degree drops by 1 point per year. In addition, after 4 consecutive years without a claim, the degree is automatically reset to 11.
No. Only claims that involve your responsibility impact your degree. In the event of an accident without responsibility, your bonus-malus remains unchanged.
No. It maintains certain guarantees (theft, fire, broken glass) without the vehicle being in circulation. It does not generate claims with responsibility and, therefore, does not impact your bonus-malus degree.
Yes. Your bonus-malus degree is attached to your driving history. When changing insurers, ask your former insurer for an information statement to claim your bonus.
Yes, under conditions. You must provide a certificate from your former insurer covering 5 years of history. Luxembourg insurers apply equivalences with neighbouring and European countries, allowing you to retain the benefit of your experience acquired abroad.
The bonus refers to a premium reduction obtained after years without a claim (degree less than 11). The malus refers to a premium increase following one or more claims involving your responsibility (degree greater than 11).
You can review your annual auto insurance certificate, which mentions your current degree, or contact your insurer directly.
To get an accurate estimate, it's best to contact an agent and provide your vehicle and license information to get an accurate quote.