Car insurance in Cyprus is mandatory for all drivers. It protects you and others in case of an accident. It’s important to understand what the law requires, what options you have, and how to avoid fines or other penalties.

Compulsory Car Insurance

According to the Motor Vehicles (Third-Party Insurance) Law of 2000 (Law 96(I)/2000), every vehicle in Cyprus must have at least third-party liability insurance. This covers damage or injury you may cause to other people or their property.

This requirement is based on the European Directive 2009/103/EC, which applies in all EU countries.

Types of Car Insurance

1. Third-Party Insurance: The basic, legal requirement. It covers damage you cause to other people or their vehicles.
2. Third-Party, Plus: Covers additional risks like Personal accident of driver and Breaking windshield.
3. Comprehensive Insurance: Offers full protection, including damage to your own vehicle—even if the accident was your fault.

Your choice depends on the value of your car and your personal needs.

Car Insurance and vehicle ownership transfer process

When you buy a vehicle, you must get a new insurance policy under your name before driving it. The previous owner's insurance does not cover you. For the transfer, you will need:

• TOM 9Γ form
• The vehicle’s registration certificate (Title of Ownership)
• A new insurance policy
• Declaration of exemption from recalls

These documents must be submitted to the Department of Road Transport (TOM).

What happens if you don’t have insurance?

Driving without insurance is a serious offense in Cyprus. The consequences may include:

• Fines of up to €3,000 for a first conviction and up to €6,000 for repeated offences.
• Imprisonment of up to one year for a first conviction and up to two years for repeated offences.
• Driving license suspension for at least six months for a first conviction and twelve months for repeated offences.
• Vehicle impounded by the police until an insurance policy is issued

Tips for drivers

• Check your coverage: Make sure your insurance meets your needs, especially if you travel often.
• Renew on time: Don’t let your insurance expire. Renew it before it runs out.
• Update your details: If your personal or vehicle details change, inform your insurance company immediately.

Car insurance is not only required by law—it’s also essential for your safety and peace of mind on the road.