I want ‘All Risks’ insurance for my new car and I have to declare its replacement value. How do I calculate this replacement value?
The rate for coverage of Fire, Theft, Broken Windscreen and Property Damage is based on the insured value, which must be equal to the replacement value of the insured car.
The replacement value is decided on the day on which the car is insured against one or more of the insurable risks, even if the car is no longer “new” at that time.
The replacement value of your car corresponds to the sales price in a new condition of an identical car with the options and accessories and with any audiovisual and/or communications equipment that is fitted.
The options are modifications that the manufacturer has planned along with the basic model, such as: automatic gearbox, tinted windows, electric windows, central locking, ABS brakes, aluminium wheels, leather seats, etc.
Depending on the make, one of these options might be fitted as standard on the basic model.
These are items that are fitted as extras to the vehicle at the request of the owner; for example, fog lights, roof rack, etc.
- Audiovisual and/or communications equipment
These include the following items: radio, CD player, radio-transmitter, decoder, loudspeaker, telephone and similar devices.
This equipment is only insured if it is fitted to the vehicle. Therefore a portable radio that is simply placed on a seat is not covered, and nor are the cassettes and CDs themselves.
Depending on the make, one item or another might be included as standard in the basic model.
- Sales price
The phrase “sales price” means the official sales price in Luxembourg, without discount or rebate and including VAT.
Individuals and companies who are liable for VAT can insure their vehicle without VAT provided they make the appropriate declaration on the insurance proposal. In such cases, claims will also be settled without VAT.
If the vehicle to be insured is no longer for sale as a new car, its last sales price when new will be taken into account. This price will be adapted to the developments in new car prices for a similar type of vehicle that bests corresponds with the car to be insured. The same procedure will be followed for the options, accessories and audiovisual and communications equipment.