Car insurance in Cyprus — what you need to know

car insurance Cyprus

Car insurance in Cyprus is mandatory and often cheaper than in countries like Germany. It’s crucial to know what’s included — and what isn’t — before you buy.

Compulsory Insurance (Third-Party / CMTPL)

  • Required by law to register and drive a car
  • Covers damage to others’ vehicles, property, and health
  • Does not cover your own car or injuries

Comprehensive Insurance (Full Cover / CASCO)

  • Covers your own vehicle even if you’re at fault
  • Includes theft, natural disasters, vandalism, fire, etc.
  • Ideal for new, expensive, or leased cars
  • Often required by banks for financed vehicles

Protected No Claims Bonus

  • Some insurers offer this to preserve your discount even after an accident

Good to know

  • Most car insurance policies exclude coverage in Northern Cyprus
  • Driving while intoxicated voids all coverage and roadside help; safest assumption is zero tolerance for alcohol/drugs/impairing medication
  • Driving without insurance is a criminal offense
  • A valid MOT is required for your insurance to be valid
  • Premiums may drop if you switch to a Cypriot driver’s license after 6 months
  • Insurers may accept your foreign driving history — ask about it

Practical details

  • You must purchase a car insurance in Cyprus before you use the car (no temporary/pre-registration cover)
  • 14-day withdrawal right usually applies; brokers may charge ~€25 if you cancel in this period
  • Most policies run for 12 months and are not auto-renewed — you must extend manually
  • You can transfer a No Claims Bonus (NCB) from abroad with the correct confirmation form

Email template to request your NCB

Subject: Request for No Claims Bonus Confirmation

Dear [Insurer],

I kindly request a signed No Claims Bonus confirmation, including duration and claim-free years. Please use or attach it to this official form: template_NCB.

Best regards,

[Your Name]

Other observations

  • Annual mileage is usually not considered in pricing
  • Garage vs. street parking rarely affects pricing
  • Higher deductibles (e.g., €500/€1,000 vs €200) often reduce the premium only slightly
  • Mostly only named drivers are covered; broader cover costs extra
  • Young drivers under 25 or over 70 may face exclusions or conditions
  • No need to carry a printed certificate — police can verify coverage electronically

Popular car insurance companies in Cyprus

Insurance brokers

  • Abbeygate — specialises in expats; accepts drivers without a yellow slip
  • TopQuotes — compares offers from multiple insurers

Tips to lower your premium

  • If you get a broker offer, ask if cheaper like-for-like options exist — savings of ~€70–100 are possible
  • Insure multiple family vehicles together
  • Broker services save time but may include an implicit ~€50 fee per policy; comparing yourself can be cheaper if you’re not in a rush
  • List the most experienced driver first
  • Add extras (off-road, roadside) only if you really need them

Choose the right car insurance for your vehicle’s age and value — and always read the fine print.