1. The insurance formulas

Minimum = RC

Mini crash = RC + Fire, Theft, Broken Ice, Force of Nature, Collision Game and Stray Animals

Casco = RC + Fire, Theft, Broken Ice, Force of Nature, Collision Game and Stray Animals + DM

The Civil Liability (RC) cover:

This is a compulsory insurance taken out by the owner of the vehicle or a third party, which covers bodily injury and property damage caused to third parties whenever the insured automobile is held responsible.

Amount covered:

As a rule of thumb

  • for personal injury: 1 million per victim or 5 million per event.
  • 1 million for property damage.

Fire coverage:

This covers damage resulting from fire, lightning strike and explosion.

Theft coverage:

This covers theft and damage caused by thieves.

Attention some exclusions exist such as :

  • if the perpetrators or accomplices of the theft are family members or live in the household of the policyholder.

  • theft without burglary.

The guarantee breakage of glass :

It covers breakage of windshield, sunroof, side and rear windows.

Force of nature coverage :

The coverages of this insurance are related to any damage resulting from avalanche, weight of snow, landslide, tornado, storm, hail, flood, earthquake and volcanic eruption.

The collision of game and stray animals coverage :

Are covered only damages that occurred accidentally by providing a certificate from the judicial authorities or police within 24 to 48 hours maximum.

The material damage (DM) guarantee:

This guarantee covers damage suffered by accident or by the fact of a third party.

Attention certain exclusions exist such as wear and tear of parts, driving without a driving licence or under the influence of alcohol or drugs.

Generally the DM includes vehicle assistance, personal assistance, replacement vehicle and also the replacement or replacement value of the vehicle.

Vehicle assistance includes :

  • towing of the vehicle for reasons other than mechanical breakdown (some companies provide breakdown assistance as an option)
  • repatriation and guarding of the vehicle.

The assistance to the persons foresees :

  • transportation of the occupants to their home or hotel.
  • accommodation expenses.
  • repatriation of the occupants, luggage and animals.
  • expenses for continuation of the trip.
  • repatriation of the remains in the event of death.

Replacement vehicle :

Provision of a vehicle in the event of indisposition of the insured vehicle while repairs are being carried out.
Only in the event of a claim that immobilizes the insured vehicle.
The duration varies according to the companies and options chosen.

The replacement value of the vehicle is equal to the sale price in new condition without discount or rebate including options (as a general rule you can choose this option for the first 36 months of a vehicle).

The replacement value is equal to the amount needed on the day of the loss to replace the insured vehicle with a vehicle of the same age, type, options and mileage.

2. How an insurance contract works.

Documents required to set up an automobile contract

Identity card of the policyholder
Driver's license
Bonus/malus certificate (if previous)
Vehicle chassis number and technical data of the vehicle (make, model, cubic capacity etc...)
Vehicle registration number

An automobile insurance contract may be suspended in the event of a transfer of ownership of the vehicle (the policyholder must immediately inform the insurance company), or if the vehicle is taken out of service.

Following the suspension, it may be reinstated within 12 months of the suspension if the policyholder puts the insured vehicle back on the road or replaces the vehicle.

Termination of the automobile insurance contract may occur in the event of transfer of ownership of the vehicle if no other vehicle replaces it, or in the event of a medical contraindication or physical incapacity preventing driving.

It can also be done if the policyholder wants to change insurance company, in which case the policyholder will be obliged to send a registered letter to the insurance company within one month from receipt of the anniversary invoice.

3. Franchise

An automobile insurance policy may have a deductible, which is the amount that the policyholder is required to pay to the insurance company in the event of a claim.

The amount is equal to the amount of the loss if the loss is less than the amount of the deductible, and is equal to the amount stated in the contract when the amount of the loss is greater than the amount of the deductible.

Example 1:
Excess = EUR 600; claim = EUR 1400; the policyholder has to pay EUR 600.

Example 2:
Excess = 600 EUR; claim = 400 EUR; the policyholder must reimburse 400 EUR

4. Accident

How the claim usually works

In the event of a claim, the policyholder must send an amicable report if a third party is present, or send a claim report to his insurance company in the event of material damage or unknown third parties.

Accident in Luxembourg without casco :

If the policyholder is responsible, he will have to take care of the repairs of his vehicle himself, and the insurance company will compensate the third party victims and may have recourse against his insured.

If the policyholder is not at fault, the insurance company opens a legal protection file and contacts the opposing insurer to settle the damage.

Accident in Luxembourg with casco :

If the policyholder is responsible, the insurance company will appoint an expert and compensate his client for the repairs to his vehicle within the contractual limits, and the insurance company will compensate the third party victims and will be able to make recourse against its insured.

If the policyholder is not at fault, the insurance company will open a legal protection file and contact the opposing insurer to settle the damage.

If the policyholder is not at fault, the insurance company will appoint an expert and will compensate the client for the repairs to the vehicle and will have recourse to the opposing insurance company, failing which it will have recourse against the third party responsible.

5. Definitions :

Policyholder: the person who takes out the insurance contract and to whom the insurance premium is due.

Insured: the owner, any driver of the insured vehicle as well as any person transported.

Green card: this is the document that materializes the civil liability insurance coverage.