An estimated 80,000 uninsured vehicles are currently circulating on the island’s roads, according to industry estimates, raising concerns over road safety and increasing financial pressure on the Motor Insurers Fund.
The presence of uninsured vehicles in Cyprus continues to grow alongside rising compensation claims, which authorities say are increasing year by year.
Rising compensation claims strain fund
Data from the Motor Insurers Fund show a steady increase in claims linked to accidents involving uninsured drivers.
In 2025 alone, 1,725 compensation claims were submitted, marking a nearly 19% increase compared with 2024. Earlier years recorded 1,452 claims in 2024, 1,345 in 2023, 1,395 in 2022 and 1,083 in 2021.
The total payouts from uninsured vehicles-related cases exceeded €19.2 million over the past five years.
Millions paid in compensation
In 2025, the Fund paid out €3.98 million in compensation, slightly lower than €4.13 million in 2024. The highest level in the past five years was recorded in 2023, when payouts exceeded €4.8 million.
Following payments, the Fund pursues recovery from responsible drivers, although recovery rates remain limited.
Calls for stricter penalties
Motor Insurers Fund officials argue that stronger deterrent measures are needed to reduce uninsured vehicles in Cyprus.
Proposals include higher fines for driving without insurance and stricter penalties for failing to update vehicle ownership records after transfers.
Authorities believe current fines may not be sufficient to discourage non-compliance.
Why drivers remain uninsured
According to industry representatives, the cost of insurance is not the main reason some drivers remain uninsured.
Instead, cases often involve negligence, deliberate risk-taking, or failure to renew policies. Officials also note that better enforcement may be leading to higher detection rates.
Despite increases, Cyprus remains among the lowest-cost countries in Europe for motor insurance.
Legal consequences and risks
Driving without insurance carries a €200 fine, penalty points, and possible court sanctions, including imprisonment or higher fines for repeat offenders.
In the event of an accident involving uninsured vehicles, victims are compensated by the Fund, which then seeks full recovery from the responsible driver.
Authorities warn that the financial consequences of an accident far outweigh the cost of insurance.
What to do in an accident with an uninsured vehicle
If involved in an accident with an uninsured driver, motorists should immediately notify the police and inform the Motor Insurers Fund before repairing any damage.
Claims must be submitted with full documentation, including vehicle ownership and insurance details, as well as medical certificates in injury cases.
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