The Vehicle Insurance in Cyprus
The legislation in Cyprus obliges vehicle owners to have at least a valid 3rd party insurance for every active vehicle they own.
The 3rd Party Insurance covers personal injuries and material damages caused by the driver to the passengers and other people affected by the accident.
In this way it is secured that the victims of the accident will receive a proper compensation irrespective of the driver's economic position.
The car owners may also upgrade their 3rd party insurance to a comprehensive insurance.
Although the Comprehensive Insurance is more expensive, it covers additionally the driver's injuries and material damages irrespective if he was responsible for the accident or not. Of course the intentional and malicious destruction of property are not covered.
Cyprus is signatory to the Multilateral Guarantee Agreement (MGA) which means vehicles legally registered and insured in any EU Country are automatically legally insured in Cyprus.