Increase in uninsured vehicles and compensation claims in Cyprus

Industry estimates indicate that approximately 80,000 uninsured vehicles are currently circulating on Cyprus roads, raising significant road safety and financial concerns. The Motor Insurers Fund reported that compensation claims related to uninsured drivers have risen steadily over recent years, totaling 1,725 claims in 2025, which represents a nearly 19% increase from the 1,452 claims recorded in 2024. Previous data show 1,345 claims in 2023, 1,395 in 2022, and 1,083 in 2021. Total payouts for these cases over the past five years have exceeded €19.2 million. While payouts reached €3.98 million in 2025 and €4.13 million in 2024, the highest annual figure was recorded in 2023 at over €4.8 million. Although the Fund pursues recovery from responsible drivers, officials state that success rates remain limited. To address the issue, authorities are proposing stricter penalties and higher fines for driving without insurance or failing to update ownership records. Industry representatives noted that insurance costs are generally not the primary reason for non-compliance.