RCA capping, more useless than you think: why you will pay more, what are the criteria, the reference rates

In theory, many Romanian drivers have expressed optimism about the RCA tariff cap promised by the authorities. Unfortunately, these will not be reflected in any form in lower prices paid by car owners in Mioritic lands.

The Romanian authorities, at the initiative of the Government, through ASF Romania, have established new reference tariffs for our RCA market. This happened again in August 2021, but then the values ​​were significantly lower than now. Immediately after the definition of the tariffs accessible at this address, the capping of the tariffs practiced by the insurers for the compulsory insurance within the respective limits will follow. The cap will be imposed for six months on the new level of reference tariffs. Beyond the technical and legislative features behind it, one thing is for sure. The RCA will inevitably become more expensive for all drivers in Romania.

RCA insurance is more expensive than ever, but is now required by the ASF

Following the bankruptcy of City Insurance, it became clear that an increase in MTPL rates was inevitable. This has happened, and those who took out insurance in January 2022 have paid almost double what they would have paid a year ago. If those values ​​seemed exceptional to you and you thought that in the future they would return to the numbers of the past, you were sorely mistaken.

The new RCA benchmark rates were calculated based on the historical data of all RCA players regarding the insurance policies and damages for the analysis period between January 1, 2016 and December 31, 2020. Normally, the concept of reference rate does not comes in the form of an obligation for insurers to conclude RCAs at this value. They are just a landmark.

In 2022, however, we are talking about an exception. The MTPL insurance purchased by Romanian drivers for the next six months is not allowed to exceed the reference rates. Although it seems like good news, we are talking about an average increase between 7.5 and 18.8%.

In practice, if you want some reference values, drivers aged 30 years or less who own vehicles with a cylinder capacity greater than 2,500 cubic centimeters (cm3), the RCA rate increases to 3,551 lei, from 3,080 lei in August 2021, 3,032 lei in March 2021 and 2,870 lei in April 2020. In the category 1,801 – 2,000 cc, drivers aged 30 years or less will pay 1,853 lei, compared to 1,628 lei in August 2021, 1,605 lei in March 2021 and 1,523 lei in April 2020.

For the same type of vehicles, drivers aged between 31 and 40, the RCA rate will be 1,159 lei, from 1,036 lei in August 2021, 1,031 lei in March 2021 and 1,035 lei in April 2020. Last but not least, the owners of vehicles with cylinders between 1,401 – 1,600 cm3 and the age between 31 and 40 years will pay an RCA tariff of 917 lei, compared to 831 lei in August 2021, 824 lei in March 2021 and 832 lei in April 2020.