The relationship between Cypriots and their cars can range from unique to passionate. For many, a car is not just a means of transportation, as it is for many Europeans, but a symbol of freedom, independence, and personal expression. Driving and owning a car is culturally linked to coming of age—it’s essentially the first act that signals to the world, “I’ve grown up!”
A recent Eurostat study highlights this point. In 2022, Cyprus ranked 4th in Europe for the number of passenger cars per capita, with 658 cars per 1,000 Cypriots—a 19% increase compared to 2013. The EU average for its 27 member states is 560 cars per 1,000 residents, also showing an 11.8% rise over the same period.
It’s clear that for those of us living on this island, cars are extremely important! This brings up the question: are we insuring them properly?
In the insurance industry, we often encounter customer reluctance to insure their cars comprehensively—even if they are brand new!
In this article, we’ll explore the essential car insurance coverages you need to know and ensure are included in your policy.
Types of Coverage
Let’s start by explaining the three main types of car insurance coverage and what you need to know about them.
Third-Party Liability Insurance
This is the basic and mandatory form of insurance required by law in many countries, including Cyprus. Third-Party Insurance has been mandatory in Cyprus since 1957 and is now aligned with European legislation.
This insurance covers damages caused to third parties (e.g., other drivers, pedestrians, vehicles, or property) by the insured driver in an accident. However, it does not cover damages to the insured vehicle.
Fire and Theft Insurance
This type of insurance covers two specific risks: fire and theft of the insured vehicle. It also covers damages resulting from attempted theft. However, it does not cover damages to the insured vehicle from accidents or other causes unless directly related to theft or fire.
This is a middle-ground option for those seeking protection against specific risks, though often it’s worth opting for comprehensive insurance for only a slightly higher cost.
Comprehensive Insurance
Comprehensive or mixed insurance offers broader coverage than the mandatory Third-Party Insurance. It covers not only damages to third parties but also damages to the insured vehicle from various causes such as accidents, theft, fire, and accidental damage. This type of insurance provides greater protection and peace of mind for car owners.
Additional Coverages to Consider
While the above are the basic types of car insurance, many insurance companies offer additional coverages, some included in packages and others available as optional add-ons. Here are three of the most important ones:
Windshield Coverage
This covers accidental damage to your vehicle’s windows, including the windshield, side windows, and rear glass. It usually excludes side mirrors.
With this coverage, if a window is damaged—e.g., by a stone while driving—the policy will cover the cost of repair or replacement without additional expense to you.
Natural Disaster Coverage
This critical coverage is often missing from policies and can lead to misunderstandings between insured individuals and insurance companies. Not all policies include it.
It protects your vehicle from damage caused by natural phenomena such as floods, hail, storms, earthquakes, and other natural disasters.
Coverage for Riots, Strikes, and Civil Disturbances
This coverage is not included in all comprehensive policies. It’s usually an optional benefit or part of premium packages.
It protects your vehicle against damages caused by riots, strikes, or other civil disturbances. For example, damage during protests or incidents at sports stadiums is covered only if this benefit is included in your policy.
Why It’s Important
Car insurance is the most popular type of insurance, partly because it’s legally required. However, it offers a variety of coverages and benefits that car owners should be aware of.
At Nimela Insurance, with over 20 years of experience and a strong team of Insurance Advisors, we’re here to guide you and recommend the coverage that best protects your beloved car.
Contact us today and leave everything else to us.