More than 80,000 uninsured vehicles are estimated to be circulating on Cyprus roads today, increasing the risk for other motorists and placing additional pressure on the Motor Insurers' Fund (MIF), which compensates victims of road collisions when the at-fault driver does not have insurance coverage.
The Fund's latest figures show that these cases are increasing year by year. In 2025, 1,725 compensation claims were submitted, nearly 19 per cent more than in 2024, when 1,452 claims were filed. In 2023 there were 1,345 claims, in 2022 the figure stood at 1,395, and in 2021 at 1,083.
The increase in cases is also reflected in compensation payments made by the Fund. In 2025, €3,983,183 was paid out, compared with €4,126,822 in 2024, while the highest amount of the past five years was recorded in 2023, when payments exceeded €4.8 million.
Overall, from 2021 until the end of 2025, the MIF paid out more than €19.2 million in compensation. The table published alongside the report is particularly revealing.
After compensating victims, the Fund pursues the at-fault drivers in an effort to recover the money paid out. In 2025, recoveries amounted to €471,465, representing 11.8 per cent of compensation payments. The corresponding figure was 10.4 per cent in 2024 and 7.2 per cent in 2023.
According to the MIF, "these results are considered satisfactory when compared with similar organisations abroad."
Calls for Higher Penalties
The Fund's general manager, Akis Papachristodoulou, believes there is room for stricter penalties.
In a statement to Politis, he said that increasing the fixed penalty for driving without insurance could serve as a stronger deterrent.
He also suggested imposing higher fines on vehicle owners who fail to notify the Road Transport Department after transferring ownership of a vehicle.
Why Do People Drive Without Insurance?
The general manager of the Insurance Companies Association of Cyprus, Andreas Athanasiades, believes that rising insurance costs are not the main reason why some drivers remain uninsured.
Speaking to Politis, he said that any increases or decreases in insurance premiums result from objective factors, including changes in compensation costs, repair expenses, spare parts, labour costs and insurance companies' operating expenses.
"When the cost of compensation increases, it is logical that premiums are affected," he said, adding that despite adjustments in recent years, motor insurance in Cyprus remains among the cheapest in Europe.
"Once someone owns a car, pays for fuel, servicing and all the other costs associated with using it, it is difficult to argue that the €200 or €300 insurance premium is the reason they choose to remain uninsured," he said.
In his view, most uninsured drivers are either negligent or consciously choose to take the risk.
He did not rule out, however, that part of the increase in uninsured vehicles may be due to more effective enforcement, resulting in a greater number of violations being detected.
At the same time, he noted that "population growth and the increasing number of vehicles on the roads may also be affecting the overall picture."
Asked about the issue, he said that the real problem for an uninsured driver is not the fixed penalty but the possibility of causing an accident.
"The victim will be compensated by the Fund. Afterwards, however, the Fund will pursue the at-fault driver to recover the full amount that it paid out," he said.
Regarding the insurance market more generally, he noted that the motor insurance sector operates on narrow margins, with some years producing small profits and others resulting in losses for insurance companies.
€600 Insurance Premium or €200 Fine?
A reasonable question concerns young riders of high-capacity motorcycles, who in many cases are required to pay insurance premiums that exceed €500 or even €600 per year.
The high cost may discourage some riders from purchasing insurance coverage.
However, choosing to drive uninsured can prove far more costly.
Currently, driving without insurance is punishable by a fixed penalty of €200 and the addition of three to six penalty points.
If the case goes to court, the penalty may reach up to one year in prison and/or a fine of up to €3,000.
For a second conviction within two years, the law provides for up to two years' imprisonment and/or a fine of up to €6,000.
If an uninsured driver causes an accident, the Motor Insurers' Fund compensates the victim and then seeks to recover the entire amount from the driver responsible.
What You Need to Know
According to the Motor Insurers' Fund, if you are involved in a collision with an uninsured vehicle, you should:
- Notify the police immediately and state that an uninsured vehicle is involved.
- Inform the MIF before carrying out any repairs so that the damage to the vehicle can be inspected.
- Submit a compensation claim to the Fund together with the vehicle registration document, insurance certificate and all other required supporting documents.
- If injuries are involved, attach all medical certificates and relevant medical reports.
- In a hit-and-run accident involving an unidentified vehicle, the police must be notified immediately or no later than 48 hours after the incident. The Fund should also be informed without delay so that it can investigate the case.
If the accident involves a vehicle with foreign registration plates, it is important to record details of both the vehicle and its insurance coverage. The case will then be handled either through the Cyprus Bureau of Motor Insurers or the MIF, depending on the circumstances.
If the Accident Happens Abroad
In the event of a road accident abroad, drivers should immediately contact the Bureau of Motor Insurers in the country where the accident occurred. Contact details can be found on the back of the Green Card.
If they are responsible for the accident, they must provide the other party with details of their insurance coverage or Green Card and inform both their insurance company and the relevant Bureau of Motor Insurers.
If they are not responsible and wish to seek compensation, they should record details of the other vehicle, the driver and the insurance company involved.
If the accident occurred in a European Union country, they may submit their claim upon returning to Cyprus through the Cypriot representative of the foreign insurance company. Details of that representative can be obtained from the Cyprus Information Centre (tel. 22807168).
The same procedure applies to pedestrians or passengers who were injured in a road accident abroad.
