Automobile Insurance

Choose the right level for your needs

Basic insurance or the best level of insurance - here are the different levels of vehicle insurance available in Luxembourg:

• Third party liability and legal cover
• Third party, legal, fire & breakage of glass
• Third party, legal, fire & breakage of glass, theft of (car and audio), collision with a wild animal, assistance in the event of an accident) referred to as half CASCO
• Full CASCO or fully comprehensive

Luxembourg no-claims discount system (NCD)

With up to 55% discount off the third party cover and 50% discount on the bodywork cover to reward careful drivers with lower insurance costs, we help you with any documentation to ensure you are placed at the right level

Level	discount applied to the third party and bodywork premium
11	100%
10 (1 year NCD)	100%
9 (2 years NCD)	10% discount
8 (3 years NCD)	15% discount
7 (4 years NCD)	20% discount
Continued...-3 (14 years NCD)	55% discount (50% discount bodywork insurance)

Insuring your vehicle’s bodywork

Reducing your annual premium, you can choose a franchise (or excess) which would apply to any bodywork damage cliams. The various levels of the franchise (based on the new price of the vehicle) are as follows:

• 2%
• 3%
• 5%
• 10%

Example: If the vehicle was EUR 15,000 when new, a 3% franchise would be EUR 450

You can also choose to have a franchise that is always applied, or a franchise that will only be applied if you damage the bodywork and no other car was involved.

Insuring the driver and passengers

Accident in circulation - 5 levels of cover from EUR 30,000 to EUR 120,000 covering the driver/policy holder and the occupants of the vehicle in the event of a accident causing a permanent disability, and EUR 5,000 to EUR 60,000 in the case of death.

Driver protection (conductor protégé) – 23 levels of cover to the driver/policyholder in the event of an accident causing total and permanent disability

• EUR 250,000
• EUR 500,000
• EUR 1,250,000

Car Loans

Looking to buy a new or used car – Foyer’s Mobile Credit provides car loans from EUR 2,500 to EUR 100,000 with repayments of up to five years. (Available for residents of both Luxembourg and Belgium, terms and conditions apply).

Offering a competitive interest rate, and a decision within 2 hours of your credit request – choose from either a traditional car loan up to 100% of the purchase price, or finance a portion of the loan amount over two years, leaving a residual amount at the end of the agreement, ideal if you regularly change your car.

Tax deductible

The third party auto cover & car loans are deductible under the article LIR111 (click on the “other services” tab for details about fiscal allowances)

Further information

With the possibility of an additional 15% discount off your car insurance premium, if you would like further details about any of items mentioned here, please contact us for a non-obligation quotation or to schedule an appointment to discuss your requirements.

Click on the “other services” tab for details of Vehicle registration services

Home Insurance

Essential cover – if you are an owner or a tenant, you need to protect your home against the following risks:

• Fire and smoke damage
• Electrical, water, storm and natural disasters
• Theft of personal possessions
• Legal protection and assistance
• Private liability (RC Privée)

Helping to get you the right home insurance

Insuring the house – the property needs to be correctly calculated for the square metres of both living spaces, the size of un-habitation areas such as attics, cellars, garages, etc, and furthermore to check what features your house has, such as a chimney, wooden floors, to name a few.

Insuring an apartment – apartments are insured using the formula of “pièces” which are main living areas from 8 to 30 square metres (classed as 1 pièce), living areas over 30 square metres are classed as 2 pièces. The size of cellars and garages still use the pièce formula, however the sizes are increased considerably.

Hallways & corridors, or rooms less than 8 square metres are not classed as a pièce. Any features such as a two bathrooms, wooden floors, marble floors need to be taken into consideration too.

Insuring the contents – You can decide this amount, but remember the kitchen units and fitting need to be included in this amount. Collections and objects of value should be valued to ensure you are adequately insured and any special conditions explained, i.e. the safekeeping of jewellery, watches, etc.

Extra protection for your belongings

In addition to the essential risks, Foyer’s Reebou Family home insurance package offers 4 separate packages to extend the level of cover for the following:

• Travel Pack – comprehensive cover including trip cancellation, baggage insurance and medical fees and assistance.
• Leisure & Valuables Pack – increased cover for accidental damage and theft outside the home for the following three categories:
• Audio visual multimedia equipment including smartphones, all types of computers & equipment, cameras, etc.
• Objects for recreation use, bicycles, golf clubs, ski equipment, etc.
• Watches & Jewellery.
• Personal Accident Pack – extra cover for you and your family to compensate over EUR 1,000,000 in the case of an accident resulting in a permanent disability.
• Legal Protection Pack – extra legal protection in Europe for disputes (including work related) in your private life.

Private Liability insurance (RC Privée)

Either as part of your home insurance, or a separate policy, this provides cover of EUR 1,000,000 for any accidental damage that has been caused by your members of your household and over EUR 10,000,000 for any personal injury cause to a third party.

Note: due to a recent law introduced in Luxembourg, if you have a dog, you must have this cover.

The cost of RC Privée is not expensive and it is also tax deductible under article LIR 111

Rental Guarantee for property owners

If you own property and you rent it out to tenants, you can insure yourself against the loss of rental income due to non-payment of the rent and charges from your tenants for up to 12 months (up to EUR 15,000 per rental contract).

There is also cover for legal fees in connection with a dispute or non-payment of your rental income.

Discounts

With the possibility of an additional 20% discount off your annual home insurance premium, if you would like further details about any of items mentioned here, please contact us for a non-obligation quotation or to schedule an appointment to discuss your requirements.

Health, Accident and Travel

Complementary health insurance

Enabling you to recover, in some cases, up to 100% of your expenses for visits to the doctors, dentist, opticians and more – Foyer’s Medicis cover can provide you with complementary health insurance for both outpatient and inpatient hospitalisation treatment – your very own first class medical passport which gives you the choice of the best medical treatment anywhere in Europe, including Switzerland.

Accident insurance

Accidents can happen at any time! You are statistically 3 times more likely to suffer an accident in your home than in your vehicle. Working with the Luxembourg legislation, discover how you can cover you and your family for EUR 1,000,000 to provide financial compensation in the event of a permanent disability of any kind.

Travel insurance

Travelling for business or pleasure, protect yourself and your family against the following risks:

• Trip cancellation
• Damaged or stolen luggage
• Medical expenses when travelling abroad
• Search and rescue whilst taking skiing and walking holidays

In many cases you have a choice of an annual policy covering you and your family for multiple trips abroad, or a temporary period of travel cover.

Further information

If you would like further details, please contact us for a non-obligation quotation or to schedule an appointment to discuss your requirements.

Life Insurance and Pensions

Life Insurance gives you the piece of mind that your loved ones continue with a more secure financial future if anything happens to you. There are many tax allowances available in Luxembourg to help you off-set the cost of life insurance.

Analysing you personal situation

To help you clarify what is most important for you, consider the following:

• What amount of capital would you need to replace the salary of the main income provider within your family if they were unable to work due to an accident or disability?
• What are your liabilities – how could they be covered in the event of death or permanent disability?
• Would a combined policy of life insurance cover and savings be better for you?

Designing your solution

A balanced approach – maximising fiscal allowances, a policy can provide both life insurance and an amount of savings at the end of the term, so contributing to your pension requirements.

Tax deductible

Life insurance is deductible against personal income tax (Article LIR 111 - EUR 672 per person within your household / family for certain policies).

Pensions – create your own personal pension plan

There are a range of pension products which allow you to save for the future - some with a guaranteed return, or a variable return using unit-linked investments, i.e. investment funds, etc.

A guaranteed return – you can choose a pension product which uses the technical interest rate which is determined by the Luxembourg Commissariat aux Assurances (CAA), this is considered a guaranteed rate. The return can be enhanced by a participation of benefits (not a guaranteed figure) from the pension provider to improve the rate of return at maturity.

A variable return – alternatively you can opt for a pension product that invests in investment funds such as:

• Lower risk investments - Bond investments etc.
• Medium or balanced - both Bonds and equities
• Dynamic or higher risk - mainly equities

Note: Luxembourg pension fund products will automatically decrease the risk profile and lower the risk of your investments as the policy approaches maturity, so as to ensure preservation of your capital.

Tax allowance

Listed below are the following allowances in which you can pay into a personal pension plan and deduct against the premium against personal taxation (tax article LIR 111bis):

Age of policyholder (age at end of the tax year)	Yearly maximum deductible amount
Up to age 40	EUR 1500
From age 40 to 44	EUR 1750
From age 45 to 49	EUR 2100
From age 50 to 54	EUR 2600
From age 55 to 74	EUR 3200

Early retirement and extra guarantees

With a personal pension plan the earliest age you can retire is age 60, and a pension policy must have a minimum payment term of 10 years.

At the end of the policy term if you are a resident of Luxembourg (under current legislation) you can take out 50% of your pension fund capital as a single lump sum. The remaining amount has to be invested in an annuity of your choice. There are many different types of annuities, for example: an annuity which would continue to a beneficiary if you were to die soon after you retired; many options are available.

There are also extra guarantees you can choose to ensure your pension premiums are continually made in case of a permanent and total disability before you reach your retirement age.

Further information

If you would like to discuss your situation and requirements regarding life insurance, starting a private pension plan or to maximise your personal income tax allowances, please contact us for a non-obligation appointment to discuss your requirements.

Savings and Investments

Short, Medium or long-term goals – whatever your future intensions or plans maybe, your situation can easily change and choosing a solution that is flexible is important.

• Saving for your children’s education
• Buying a house or apartment
• Maximising my return and fiscal advantages
• Starting a monthly saving plan
• Ensuring I have access my money in case of emergency

Compared to a bank savings account, there is no taxation on the annual return within an insurance based saving product.* Fiscally deductable monthly saving plans start from EUR 56 per month (Schwäbisch Hall home saving policies & Foyer children’s saving plans).

*European Savings Tax Directive introduced 2006 – 10% taxation on interest from bank savings accounts on interest of over EUR 250 per year.

Controlling the risk & return of your savings

With a range of investment products offering a guaranteed return, a 100% guarantee on your capital, or a variable return by investing in investment funds. Many solutions are available to help you realise your saving goals with the flexibility to change your arrangements in the future.

* Information from the Flexivie savings product by Foyer, terms and condition will apply. Monthly saving plans start from EUR 250 per month with an additional lump sum of EUR 2500, or a minimum of one lump sum of EUR 10,000

Flexibility

You are not committed to a set period of time to lock away your savings or investments, however to maximise from interest rates of these saving products, a medium to long term investment horizon is suggested.

Capital at Work

Capital at Work is part of the Foyer Group and offers a complete independent and personalised Wealth Management Service.

With an in-house team of experienced investment advisors and fund managers, the key objective of the Capital at Work team is to understand the client’s objectives and put their client’s capital to work in the best possible way.

European Offices

With its head office in Luxembourg and offices in Belgium, Spain, Switzerland and the Netherlands, Capital at work manages over EUR 3.8 billion of assets and has over 120 employees across Europe.

Capital at Work is monitored by the Commission de Surveillance du Secteur Financier (CSSF) as a provider of wealth management, and the Foyer group is monitored by the Commissariat aux Assurances (CAA).

Further information

Please contact us for your non-obligation appointment to discuss your requirements.

Other Services

Vehicle Registration

Whilst it is not expensive to re-register your vehicle in Luxembourg, it can be very time consuming.

When you bring your car to Luxembourg from another EU country you have six months in which to register it in Luxembourg. To carry out this process, listed below are the documents required:

• The original grey card (registration document parts I & II if the case)
• The final invoice for the car (Important. This is considered as the proof of ownership)
• Valid green card insurance papers from a Luxembourg authorised insurance company
• The 705 sticker from the Centre Douanier
• A Luxembourg registration number (issued by the Controle Technique (CT) in Sandweiler)

Costs

Offering a complete registration service (quotations upon request), here are the current administration costs: EUR 70 fee for registering a car Luxembourg, EUR for the CT (inspection), EUR 47 for the new registration plates (supplied & fitted): EUR 144 in total.

Note – if your vehicle is from the UK or Ireland, the headlights will need to be changed, also the rear fog light might have to be changed too if there is only one fitted.

Fiscal advice

If you are living or working in Luxembourg and paying local taxes to the government of the Grand Duchy, (separate conditions for employees of EU organisations) you can take advantage of the following fiscal allowances:

Article LIR 111 – EUR 672 per person and per year against certain types of insurances, for example: a family of four (2 adults & 2 children) EUR 2688 could be deducted against tax each year.

The annual premiums paid to the following insurances qualify within this allowance:

• RC Privée – private liability insurance
• RC Auto – third party liability for motor insurance
• Complementary health insurance
• Accident insurance
• Savings policies which have a minimum period of 10 years (certain conditions apply)

Tax allowances for your home

EUR 672 per person within the household can used for home savings loans to fund the purchase or renovation of your principal home.

Single premiums of TSRD insurance (death & invalidity cover) when taking out a mortgage for your principal residence.

In addition an allowance of EUR 672 per person in the household for interest paid on: current accounts, revolving credit and loans, also interest on a mortgage on your principal residence.

Article LIR 111 bis – Personal pensions – the following annual amounts can be deducted against premiums paid into a personal pension.

Age of policyholder (age at end of the tax year)	Yearly maximum deductible amount
Up to age 40	EUR 1500
From age 40 to 44	EUR 1750
From age 45 to 49	EUR 2100
From age 50 to 54	EUR 2600
From age 55 to 74	EUR 3200

Article LIR 110 – EUR 1200 per year or EUR 1500 for independents for contributions paid per year into a company pension scheme.

Private and Professional Liability

It is mandatory in many cases to have private liability insurance (RC Privée) if you are undertaking certain sports or taking care of other people or property, or if you have a pet dog.

The cost of RC Privée is not expensive and it’s deductible under the article LIR 111 (see fiscal information section for full details).

Professional Liability

The cost of professional liability will depend on some of the following factors:

• The type of activity
• The number of employees and if members of the public come into your office / premises
• If you require extra extensions of insurance to cover you for actions for which you could be responsible.

To ensure you and your business is fully protected, contact use for a non-obligation meeting to discuss your requirements.

Legal Protection

Up to EUR 50,000 of legal protection to ensure you can defend your rights in the following situations:

• Disputes with your home
• Problems relating to your car
• Personal disputes including work disputes if you are an employee.

Mortgages - Schwäbisch Hall

Foyer has been working with Schwäbisch Hall in order to offer mortgage solutions for its clients for many years.

Schwäbisch Hall provides a tax efficient savings facility that gives you the possibility to borrowing a set amount at a competitive interest rate for home improvements or renovations.

In addition, Schwäbisch Hall can help you secure a mortgage with a number of different providers in Luxembourg and the surrounding region.

Further information

If you would like further details about registering your vehicle, or if you would like further details about the items mentioned please contact us for a non-obligation quotation or to discuss your requirements.