Motor Insurance in Cyprus in 2024. A complete guide.

Motor Insurance Cyprus

It’s not easy for inexperienced drivers and foreign nationals to buy the correct type of motor insurance policy in Cyprus.

To make matters a little more complicated, there are many motor insurance contracts to choose from, all with varying terms.

In addition, the claims handling process in Cyprus isn’t as straightforward compared to other countries.

Cypriot insurance companies have unique claim management procedures, and their willingness to pay claims varies significantly. Therefore, the premium rates and claim satisfaction ratios in Cyprus vary greatly.

Throughout this guide, we intend to answer all of your questions about motor insurance in Cyprus.

We will examine the different types of motor coverages and help you choose the most affordable plan by finding the correct one for you.

If you have more questions by the end of this guide, please contact one of our insurance agents who will be glad to help you.

Table of contents

Types of motor insurance in Cyprus
What is excess in motor insurance?
Motor insurance for new drivers in Cyprus
Motor insurance for young drivers in Cyprus
Temporary motor insurance Cyprus
How much is motor insurance in Cyprus?
Cheap motor insurance in Cyprus
Best motor insurance Cyprus
Online motor insurance Cyprus

Types of motor insurance in Cyprus

There are three primary types of motor insurance in Cyprus.

Third-party insurance
Third-party, fire and theft
Comprehensive insurance

Third-party insurance in Cyprus

It is a legal requirement in Cyprus to carry this type of vehicle insurance.

If you are involved in an at-fault car accident, third-party liability insurance exclusively covers the other driver’s expenses.

Your damage expenses will not be covered by this policy.

Insurance companies will compensate all of the other parties involved in the accident for property damages, injuries and death (i.e. the driver, passengers, property owners, and pedestrians).

Under third-party liability insurance, any additional drivers who drive your vehicle can be fully covered if any of the below conditions apply:

If each driver aged between 25 and 70 are allowed to drive your car, as specified by your insurance contract.
If you declare specific individuals under your insurance policy as additional drivers who drive your car. You will need to provide details, such as their names, date of birth, when they acquired a driving licence, and their driving record/history.

NB: Third-party liability allows you to drive other vehicles of the same type, even if the owner’s insurance contract does not specify that 25 to 70-year-olds can drive the car.

If you are involved in an at-fault accident (i.e. one that was your fault), your insurance contract will go into effect and compensate the third parties who were involved.

Third-party insurance can also provide roadside assistance for free around two to five times per year, if that term is specified in your contract.

In addition, windscreen damages coverage can be included with compensation varying between €300 - €500.

Some insurance contracts in Cyprus also provide third-party insurance coverage if you ever drive your car in other EU countries.

Trailers can also be covered from accident claims.

Third-party, fire and theft insurance in Cyprus

This insurance type offers the same coverage as standard third-party liability insurance. It also covers expenses associated with damages to a vehicle if it is burned in a fire or stolen.

Third-party, fire and theft insurance is usually recommended for those who temporarily live in Cyprus (if they own a holiday home and a car in Cyprus) but have a permanent home abroad.

This coverage is a little more expensive than standard third-party liability insurance. More specifically, it can be around 15% pricier.

NB: A standard home policy does not cover vehicles from theft and fire when parked in a garage. Vehicles are not included in home’s content coverage.

Comprehensive motor insurance in Cyprus

Fully comprehensive car insurance offers identical coverage to both of the above offerings, while it also provides coverage for other man-made and natural disasters.

Man-made Disaster	Natural Disaster
Theft	Flood
Arson	Storm
Civil Disorder	Earthquake
Riot	Hail
Malicious Act	Tempest
Vandalism	Fire

Comprehensive coverage covers all the damages on any vehicle involved in a car accident, regardless of who was at fault.

These insurance contracts in Cyprus always contain a deductible amount (or excess). The excess will be deducted from your vehicle’s total repair expenses.

Fully comprehensive insurance also has the added benefit of daily compensation when you can’t use your vehicle due to damages.

More specifically, the insurance company will either pay for a rental car or provide another car you can use while your car is being repaired.

Insurance companies usually provide around €20 - €30 for each day you cannot use your car.

If by chance your car is damaged and it doesn’t make economical sense to repair the car, or if it has been stolen, the insurance company will compensate you at the market value of the car.

If your vehicle is under one year old and fully damaged, some insurance companies can replace your vehicle with the exact same one.

An additional benefit of comprehensive insurance is that it provides “personal possessions insurance”. This coverage is activated if your belongings are damaged or stolen from your vehicle. The amount of coverage varies between €100 - €300.

More coverage for windscreen damage is provided with this policy compared to third-party insurance, and ranges from €700 - €900.

NB: Register your vehicle as a commercial vehicle if you are using it for business activities.

In addition, premium comprehensive insurance contracts include car misfuelling (i.e., using the wrong type of fuel in your vehicle’s fuel tank by accident).

Summary of coverages

Here is a summary of the three types of motor insurance contracts provided in Cyprus and what they cover.

Third-party insurance
Third-party, fire and theft insurance
Comprehensive motor insurance

Covers	Third Party Only	Third Party, Fire, and Theft	Comprehensive
Third Party Legal Liability	-	-	-
Trailer Liability	-	-	-
Emergency Treatment	-	-	-
Personal Accident to Authorised Driver	-	-	-
Medical Expenses of Authorised Driver or Passenger	-	-	-
Passenger Liability	-	-	-
Driving of Another Car (only for individuals)	-	-	-
Road Assistance	-	-	-
Accident Assistance	-	-	-
Damage to Windscreen	€500	€500	€800
Own Damage from Fire or Theft		-	-
Own Damage from Accident or other non-excluded cause such as Natural Perils (flood, hail, storm, tempest, earthquake, etc), Riot, and Civil Commotion, Malicious Act, Vandalism, etc.			-
New Motor Vehicle Replacement (for vehicles less than a year old)			-
Lock Replacement €250			-
Personal Belongings €170			-
Loss of Use €25 daily up to 10 days			-
No Claim Protection	Optional cover	Optional cover	Optional cover
Car Misfueling	Optional cover	Optional cover	Optional cover

Motor Insurance in Cyprus Exclusions

Most standard motor insurance contracts in Cyprus involve universal exclusions, regardless of the type, such as the following:

Intoxicated drivers.
Dirt road accidents.
North Cyprus.
Specialised road assistance for luxury vehicles.
Maximum number of passengers limits.

As with all standard vehicle insurance, the insurance will not cover damages caused by intoxicated drivers who were driving under the influence.

Not as widely known, accidents that occur on dirt roads are usually not covered. For example, many drivers who have an accident in Lara and Akamas are surprised to find out from their insurance company that their contract is void in those areas.

Another example to consider, suppose your car battery dies, or a tire is punctured on a dirt road. In that case, you will be charged between €200 - €350 for road assistance to come and change the tire or charge the battery.

In addition, the majority of Cyprus insurance contracts do not cover the occupied areas of Northern Cyprus.

Furthermore, luxury cars and motorcycles that require specialised road assistance will not be covered. Most insurance contracts do not provide specialised recovery vehicles.

Finally, if you have an accident while carrying more than the designated maximum number of passengers that your vehicle allows, your insurance contract will be void.

What is excess in motor insurance?

As mentioned, all comprehensive car insurance policies in Cyprus should include an excess.

The excess (or deductible) is the amount you must pay when filing an insurance claim.

For example, if you are involved in a car accident, and your damages cost €1,400, and you have a €300 excess. In that case, the insurance provider will pay the car mechanic €1,100.

NB: the deductible never applies to the other drivers involved in the accident. For example, suppose you caused an accident and your damage expenses cost €6,000, and the other driver’s damages cost €8,000.

If your excess is €500, the insurance provider will pay €5,500 for your damage and will fully pay the other driver €8,000.

NB: Depending on the driver’s insurance, one insurance contract might have multiple deductibles.

For example, the standard deductible for experienced drivers might be €300 for a car with a value of €25,000, but the deductible could be €800 for the children of the main driver as they are inexperienced drivers.

How is the deductible calculated?

Your insurance deductible will be calculated based on your car’s value. In other words, a pricey vehicle equals a higher deductible.

Insurance deductibles in Cyprus range from 0.5% to 1% of the car’s declared value (with a minimum excess value of €200).

If your vehicle is worth around €40,000, your deductible may range between €200 — €400.

Motor insurance for new drivers in Cyprus

Third-party motor insurance in Cyprus is obligatory, but some drivers find it almost impossible to find the correct policy or buy an affordable option.

More specifically, the following categories of drivers usually pay more than the average rate:

Drivers with under two years of driving experience in Cyprus.
Drivers without experience in countries with right-hand traffic.
Drivers under 25 or over 70 years of age, regardless of their experience level.
Drivers with native driving licences without a Cypriot or an international driving licence.
Drivers with a claim history involving car accidents in the last five years for which they were found at fault.

Additionally, the following categories of vehicles will face significant loadings when buying insurance in Cyprus:

Left-hand vehicles.
Motorcycles and buggies.
Vehicles with a high-horsepower.
Luxury cars costing over €100,000.

Motor Insurance Cyprus

Pitsas Insurances is one of the most flexible insurance companies in Cyprus, with low rejection rates for motor insurance.

In addition, Pitsas Insurances is the only insurance company in Cyprus that treats all EU and non-EU expatriates as Cypriots if they have over five years of driving experience in their native country, even if it is a left-hand traffic country, and if they have a clean accident record or not.

Nevertheless, there are some cases where drivers cannot receive insurance. For example, those with multiple expensive at-fault car accidents on their records or those with a student driving licence will find it difficult to acquire insurance.

However, drivers that are difficult to insure can be insured by the Cyprus Hire and Rejected Risks Pool.

Cyprus Motor Insurance Tips

Use the following Cyprus motor insurance tips when looking for insurance.

Be patient. Take your time to research your options and apply for a Cyprus driving insurance licence.
Right-hand traffic. Buy a used right-hand car that you can easily import from the UK.
Declare only a small number of drivers under your contract (i.e., don’t choose the term that allows all drivers to drive your car).

Motor insurance for young drivers in Cyprus

Drivers under 25 years old or those with a driving licence of less than two years (i.e. young drivers) can be insured in Cyprus.

Pitsas Insurances considers all drivers for insurance regardless of their age.

Temporary motor insurance Cyprus

It isn’t common to find temporary motor insurance in Cyprus.

Very few insurance providers offer temporary (or short-term) motor insurance.

Insurance cover note in Cyprus

A “cover note for additional drivers” is an endorsement that provides a driver with insurance coverage to use the vehicle for under 1 - 2 weeks.

The insurance provider that has already insured the car is the only one who can issue this cover note.

Any changes to their contract will be made if the driver intends to consistently use the car throughout the year.

If that’s the case, the driver should be declared as a permanent driver on the insurance contract, and their premium should be adjusted.

Insurance policies usually include the term that any driver from the age of 25 to 70 (with a driving licence of 2 years minimum) can drive the stated car. Therefore, declaring a driver of average experience and age is an unnecessary action.

Temporary motor insurance in Cyprus

Temporary motor insurance is a short-term contract of under one year (usually between 3 to 6 months.)

People with a holiday home in Cyprus who only visit the island for a few months at a time find it more economically viable to insure their vehicle for the months they are visiting.

However, most insurance companies in Cyprus do not provide this option due to excessive bureaucracy, so most people opt for annual motor insurance and cancel it when they leave.

This option is not a profitable strategy for the following reasons:

They face a high cancellation fee.
They will never receive a non-claim discount.

NB: A non-claim discount is a document that proves you had no accidents while driving for a consecutive length of time.

These documents are only given to those who don’t cancel their insurance.

A non-claim discount can reduce initial premium rates after three years, sometimes up to 70%.

How much is motor insurance in Cyprus?

How much does motor insurance cost? The overall cost of motor insurance in Cyprus varies based on numerous factors.

Some of the conditions that affect Cyprus motor insurance include the following:

The vehicle type.
Value of the vehicle.
Vehicle usage details.
Driver’s driving record/s.
The gross vehicle weight.
Vehicle make, model, etc.
Driver’s years of experience.
How many drivers use the vehicle.
Past and present claims history.
Coverage options, i.e. limits and deductibles.

Average motor insurance cost in Cyprus

The cost of motor insurance in Cyprus varies significantly, as each insurance company provides different terms and premiums.

Minimum motor insurance cost in Cyprus

For a driver aged 30 - 50 (with a clean driving record in the past 5 years) with a standard saloon car (with an engine size of 180 - 200 horsepower), these are the minimum annual insurance costs in Cyprus.

Cheap online insurance providers

Third-party insurance - €‎120 per month.
Fire and theft insurance - €‎160 per month.
Comprehensive insurance - €‎200 per month.

Average insurance company

Third-party insurance - €‎180 per month.
Fire and theft insurance - €‎250 per month.
Comprehensive insurance - €‎320 per month.

Cheap motor insurance

The insurance market in Cyprus is fiercely competitive, so it’s common to find similar car insurance premiums across the board.

How to get cheap motor insurance

Use the following methods if you want to save on your motor insurance in Cyprus.

Avoid insuring young and inexperienced drivers on expensive cars.
Ask for an increased excess for young children and inexperienced drivers.
Increase the excess on your comprehensive insurance policy.
Remove the term that enables all drivers aged between 25 to 70 to drive your car. Ask your insurance provider to only declare those on your contract who drive your vehicle.
Downgrade your policy from comprehensive to third-party insurance or third-party insurance, fire, and theft if you don’t need as much coverage.
Acquire a medical or home insurance contract with your insurance provider, as you can receive discounts for acquiring additional policies.
Buy all your motor insurance policies with only one insurance provider. In this case, you can get a discount for insuring more than one vehicle with them.
We recommend acquiring “non-claim protection” coverage. This additional coverage protects you from increased premiums during renewal. You will only pay €20 for this coverage, but you will be protected from a €100 premium increase if you are in an at-fault accident.

Cheapest motor insurance Cyprus

Beware of low premiums, as cheap premiums can become very expensive in the long run.

Some insurance providers online offer premiums up to 25% less than most insurance premiums.

However, these low prices come with disadvantages and consumers should be sceptical.

These companies provide low premiums for the following reasons:

They provide low windscreen coverage.
They won’t insure drivers with non-EU driving licences (e.g. Ukrainian, Russian, etc.)
They won’t insure those without a clean driving record or young and inexperienced drivers.
They have high excess rates and sometimes even higher excess rates for young and inexperienced drivers.
They might not reduce your renewal insurance premium even for inexpensive claims.
They charge additional fees for alterations or contract endorsements. For example, adding an additional driver or changing the type of insurance.
They have limited road assistance they offer for free. Most of the companies provide around 3 free uses annually for road assistance.
Road assistance is limited (a maximum number of km). For example, a Limassol resident goes on a trip to Larnaca. If his car broke down in Larnaca, cheap insurance providers will only use an auto mechanic in Larnaca.
They don’t include personal belongings coverage, even with comprehensive insurance. You will thus not be covered if someone steals your belongings from your car.
They exclusively communicate through emails and not phone calls. Due to a permanent lack of employees, they usually answer emails after a few days and are impossible to get hold of during an accident.
Each client doesn’t receive one insurance consultant’s advice, meaning you don’t have consistent advice for answering your questions, or help regarding money concerns.
Cheap insurance providers don’t provide replacement cars if your vehicle is at a mechanic for repair work. They provide the minimum daily compensation to save costs for every day you don’t have access to your vehicle.
Cheap providers ask mechanics to use unoriginal car parts for repairs, as they always try to reduce their costs.
Cheap providers also try to bargain for the mechanical parts you need for repairs if your car breaks down, meaning you could be on a waiting list until those parts are delivered. You might not have access to your car for weeks.
They include huge cancellation fees. Reliable insurance companies might charge a cancellation fee of €15 - €25, whereas cheap online providers might charge €50 - €75, aiming to discourage you from cancelling the insurance.

Best motor insurance Cyprus

It’s worth remembering that there is not one best motor insurance product, but we can find the plan best suited to you.

Each individual has different needs, desires, and budgets, so the best motor insurance really depends on what you need from your insurance.

Cyprus motor insurance

We highly recommend that the owner of a new vehicle should acquire a comprehensive policy, while the owner of an inexpensive, old car should acquire a third-party policy.

For another example, Limassol has the highest accident rates than any other city in Cyprus, so Limassol residents are strongly recommended to buy comprehensive insurance.

For owners of unattended cars in garages, we recommend a minimum of third-party, fire, and theft car insurance, as thieves observe and attempt to steal unattended cars.

These cars and car parts are stolen to sell in Northern Cyprus, where Cypriot Authorities cannot handle the process. Over 90% of stolen vehicles are sold in Northern Cyprus.

Best motor insurance Cyprus

Communicate with one of our insurance specialists who will help you find the best motor insurance suited to you.

Online motor insurance Cyprus

Pitsas Insurances is among the largest online motor insurance providers in Cyprus.

Our insurance experts can offer you tailor-made motor insurance.

Why insure your vehicle with Pitsas Insurances?

Quick settlement of claims.
Flexible multiple drivers cover.
Inexpensive commercial vehicle insurance.
Support in English, Russian and Greek.
No additional fees for making contract alterations.
Our deductibles are 20% less than the average in Cyprus.
We reward discounts to our long-term clients with a clean driving record.
Further discounts for clients that acquire additional insurance contracts.
Special deals for British and Russian-speaking expats living in Cyprus.
We insure non-EU drivers with international driving licences for no extra charge.
Every client has a dedicated insurance consultant who communicates via phone.
We can insure young drivers if their parents are our existing clients or if they want to acquire other insurance contracts with us (i.e. medical or home insurance).
We are one of the few companies that provide third-party coverage in Northern Cyprus for vehicles registered in the Republic of Cyprus. However, road assistance is not included.
We can insure non-EU citizens under their country’s driving licence (e.g. Russia, Ukraine, Belarus).
We work with a large network of mechanics that provide high-quality services with a fast turnaround using exclusively original parts.
Our third-party liability contracts provide third-party coverage to other EU countries at no additional cost.
Our comprehensive policies provide full coverage for up to 30 days in other EU countries.

Motor insurance quotes

Pitsas Insurances is the largest expatriate motor insurance company in Cyprus. We cooperate with the largest international underwriters in Cyprus.

We can help you to find an offer that corresponds to your needs and also provide a guarantee of lower premiums for each insurance provider.

Compare motor insurance quotes

The most effective way to find the best motor insurance policy is to compare quotes with one of our insurance specialist’s advice.

We will help you buy the best motor insurance policy.

See here to read more about our motor insurance plans.

For a hassle-free quote, see here.

If you have any more questions, please contact one of our insurance agents who will be glad to help you. You can reach us via email here: [email protected] or via our contact form.

Pitsas Insurances Team