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Commercial vehicle insurance in Luxembourg: which cover options should you choose?

October 28, 2026
Whether it’s a company car or a tradesman’s van, as soon as a vehicle is used for business purposes, its insurance must take into account the vehicle itself, its use and the goods it carries. Are you self-employed, a tradesperson or the director of an SME? Find out what cover is available to protect your commercial vehicle in Luxembourg, what you need to declare to your insurer, and what you should check before choosing your cover.
What insurance is compulsory for a business vehicle in Luxembourg?

In the Grand Duchy, there is only one type of insurance that is compulsory for all vehicles on the road: third-party liability insurance. This requirement applies to both company cars and business vehicles.

Third-party liability insurance covers damage you cause to others. However, it never covers the driver at fault, nor the cost of repairs to their own vehicle.

Is it sufficient cover for a company car? Rarely: if your own vehicle is involved in an accident, this cover does not protect you or your vehicle.

Please note business use of a vehicle is not the same as private use. It must therefore be reported to the insurer.
What cover is available for a business car or van?

Drive Pro offers two packages: "Essentielle" and "Intégrale". Both packages automatically include the following cover:

  • Third-party liability;
  • Defence and appeals;
  • Driver protection;
  • Breakdown and accident assistance.

You can then add additional cover to suit your needs and the nature of your business.
Breakdown assistance, a replacement vehicle, vehicle immobilisation: what services are provided?

If your vehicle breaks down, Drive Pro offers three separate cover options:

  • Breakdown and accident assistance (included in both packages): 24/7 assistance in the event of a breakdown or accident that leaves the vehicle immobilised. It includes breakdown assistance or towing, as well as a replacement vehicle for up to 5 days.
  • Replacement vehicle: a replacement vehicle for up to 60 days.
  • Loss of use costs: a fixed daily allowance whilst the vehicle is immobilised, for a maximum of 30 days.

The ‘replacement vehicle’ and ‘loss of use’ cover are separate types of cover: you can choose either a replacement vehicle or a daily allowance to cover costs.
Are the equipment and tools being transported insured?

Tools, IT equipment, machinery, goods: tradespeople and professionals often transport goods in their vehicles every day. These items should not be confused with the vehicle itself.

Drive Pro therefore offers a specific warranty: “equipment and goods in transit”. It covers:

  • professional equipment;
  • IT and multimedia equipment;
  • goods.

These items may belong to you, or they may be hired or borrowed for the purposes of your business.

Optional: ‘Machinery Breakdown’ cover

The “equipment and goods in transit” cover can be supplemented by the “machinery breakdown” option. This cover includes material damage to your machinery and professional technical equipment resulting from internal mechanical failure or internal electrical damage, even in the absence of any road traffic accident.
How does the no-claims bonus scheme work for a business vehicle?

For Drive Pro, the no-claims bonus depends, amongst other things, on the type of policyholder:

  • Natural person: the no-claims bonus rules apply to third-party liability and property damage;
  • Legal entity (a company): the policy does not include a no-claims/claims bonus scheme.

This distinction is particularly important when comparing insurance for a self-employed person with that for a company.
Is the business vehicle insured abroad?

The Drive Pro cover applies in Luxembourg and in the countries listed on the International Car Insurance Card.

However, some cover provisions include specific territorial rules. For example, for the ‘breakdown and accident assistance’ cover, the ‘Luxembourg’ area also includes a 50-kilometre radius around the Luxembourg border.
Quotes and prices for business car insurance

How is the price of business car insurance calculated? It depends on the type of vehicle, its use, your business and the goods being transported that require insurance cover.

Before requesting a quote, please have the following information available to provide to the insurer:

  • the type of vehicle and its business use;
  • the driver: a single designated driver, or an unspecified driver;
  • claims history and no-claims bonus.

You can request a quote online.
Find out more
Frequently Asked Questions about business car insurance
What types of insurance are compulsory in Luxembourg?

Only third-party liability insurance is compulsory for any vehicle on the road in Luxembourg, including those used for business purposes. It covers damage caused to others but not damage to your own vehicle.
Which business vehicle insurance should a self-employed sole trader choose?

It all depends on your business, your budget and how you use your vehicle. An adviser can help you tailor the plan to your circumstances as a self-employed sole trader.
How do you insure a business van and its tools?

In addition to compulsory car liability insurance, you can take out cover for the equipment and tools you are transporting, which are often at risk of theft.
Can you insure the fittings in a van?

Yes. Drive Pro’s ‘fittings and accessories’ warranty covers certain accessories, fittings and professional technical equipment fitted to the vehicle. Professional machinery and equipment fitted to the vehicle and integral to its professional use are also included in this cover.