Despite the introduction of new legislation prohibiting age discrimination in motor insurance, many elderly drivers in Cyprus are still unable to renew their compulsory third-party liability insurance under the same conditions as before. According to the Cyprus Senior Citizens' Council, the problem has not only persisted but has become noticeably more acute in recent weeks.
Experts say the situation raises serious concerns about whether insurance companies are complying with the new law. For many pensioners, a car remains the only practical way to reach hospitals, government offices, or shops, especially in smaller communities where public transport is limited.
The new law has not yet solved the problem
The legislation aimed at protecting drivers from age discrimination was finally adopted in spring 2026 and officially came into force on June 1, 2026. It prohibits insurers from refusing compulsory third-party liability insurance or increasing premiums solely because of a customer's age.
However, just one month after the law took effect, the Cyprus Senior Citizens' Council reported receiving numerous complaints. Over the past two weeks alone, new cases have been reported almost daily. According to the Council's Executive Chairman, Dimos Antoniou, some insurance companies continue to follow their previous practices. Some elderly drivers are being refused policy renewals, others are offered significantly more expensive policies, while in some cases insurance company employees are either unfamiliar with the new legal requirements or fail to inform customers about them.
Age can no longer be a reason for refusal
Representatives of the Council stress that the current legislation sets no age limit for obtaining compulsory third-party liability insurance. There is no maximum age—whether 50, 60, or 80—after which a driver can automatically be considered an undesirable customer by an insurance company.
If an insurer decides to refuse coverage or offers a higher premium, it must provide a full written and objective explanation. Such a decision must be based solely on insurance-related risk factors, such as accident history, previous insurance claims, or other documented criteria—not on the driver's age.
Consumer organizations argue that it is particularly illogical when the government officially confirms that a person is medically fit to drive, the driver successfully passes all mandatory medical examinations, yet an insurance company still considers them too risky solely because of their date of birth.
Drivers with decades of accident-free experience are still being denied insurance
It was precisely cases like these that prompted the legislative changes. According to the Council, there were numerous instances in which motorists with 30 years of accident-free driving were suddenly refused insurance renewal after reaching a certain age. In many of these cases, they had never made an insurance claim throughout their driving history and did not represent a higher risk for insurers.
The Council is also concerned that some elderly citizens who were aware of the new law specifically referred to it when contacting insurance companies. Nevertheless, according to the Council, some insurance advisers reportedly told customers that no such legislative changes existed.
What has changed under the new legislation
The current version of the Motor Vehicles (Third Party Insurance) Law significantly strengthens consumer protection. Every insurance company is now required to provide a detailed explanation for any refusal to issue a policy. In addition, age has officially been removed from the list of factors that may be used as the sole reason for refusing insurance or charging a higher premium.
The rule applies not only to elderly citizens but to all drivers, regardless of age, ensuring equal treatment for every policyholder.
What to do if an insurer violates the law
Legal experts remind drivers that if they are refused insurance without valid grounds, they have the right to request a written explanation. If the document does not provide objective reasons for the decision, the driver may file a complaint with the competent government authorities responsible for supervising the insurance market, as well as with the consumer protection service.
Experts also recommend not immediately accepting inflated premiums, but instead comparing offers from several insurance companies. Since the new law came into force, competition among insurers has gradually intensified, and many companies have already begun updating their internal policies to comply with the new legal requirements.
Experts believe that Cyprus' insurance market will need some time to fully adapt to the new rules. Nevertheless, the legislation itself represents an important step toward fairer treatment of older drivers.
Browse a wide selection of vehicles on the DOMCar.
Photos: DOM, Pixabay
