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Which insurance to choose for my car?

You have just purchased a new vehicle? Car, motorcycle, truck, ... There are many insurance companies in Luxembourg that offer their services. But choosing among all those offers is sometimes a little difficult.

First of all, there’s not just the price to consider! Do you really need a complete insurance package for your car? Depending on the distance you’ll be driving in per year (km) and your professional and personal needs, you can find the insurance that meets your needs!


The insurance that fits your needs!

Car insurance is mandatory, but you first have to assess your insurance needs. Are you always on the go, how many kilometres will you be driving throughout a year, do you want to insure a new car or a second hand car ? These are questions that you should ask yourself before accepting the quote that seems the most attractive at first glance in terms of pricing.

Choosing your insurance has always to be done according to different perspectives.


What car insurance to choose?

First of all, remember to ask for a feedback from your neighbours, friends or family! They might have valuable advice as to their own experience with their insurance company.

Moreover, the insurance companies are there to meet your needs and especially your requirements. Do not hesitate to ask for advice before purchasing an insurance policy.

What are the criteria that have to be taken into account?

It may be, that there’s no formula that fits 100% to your needs. However, analysing essential criteria will certainly make it easier to decide before finally signing a car insurance contract.

Overall, when you embark on this track, you should take 4 major elements into consideration:

  • The price: it is often the element that will determine if you sign a car insurance contract or not. This however, should be thought through with caution, because the cheapest insurance is not always the one that provides you with adequate coverage and it often offers less guarantees in case of damage and the customer service could also be of lower quality.
  • The proximity and availability: it is always useful to be able to contact one’s agent at any time in case of emergency or even to be able to pay him a visit for contract signatures. Even if, the technology leads us to believe otherwise, insurance problems can not all be solved by phone or email.
  • Guarantees : here, everything just depends on the type of insurance policy you want to sign. In general, pay attention to the limits and exclusions listed in the possible terms and conditions of your contract!
  • Deductibles: the insurance company’s deductibles can be costly if you don’t pay attention beforehand. Know that if your contract includes deductibles, the insurance company will not take all the damages into consideration and therefore you will pay each time a part of the damage depending on the insurance premium and the deductible you subscribed to.


Tax deductible insurance premiums

Do also remember that insurance contributions and premiums are tax deductible to the extent that they are neither operating expenses nor obtaining costs and are not related to exempted income.

So be sure to make a copy of your premiums’certificates, provided by your insurance company, and indicate the paid amount on your tax return. You will find all the information on the website of Direct Taxes or on guichet.lu

Finally, Banque Raiffeisen also offers a subscription of an outstanding balance premium when you make a loan to finance your car. This subscription is required only in certain cases, depending on your age, the borrowed amount and the risk. It will be paid in a single premium which is also deductible from your taxes.

Do not hesitate to go to the nearest Raiffeisen branch to get further information or ask your Raiffeisen-advisor.

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