RCA Insurance Price Cap Extended Until June 30, 2025

As expected, at its last meeting in March, the Government decided to extend the cap on RCA insurance prices until 30 June 2025, effectively keeping the previous freeze on RCA premiums in place for another three months.

This outcome was widely anticipated, even though ASF representatives had already said at the end of last year that the cap would end. Despite that, the Government has now extended the freeze on RCA tariffs until 30.06.2025.

For vehicle owners, the result is clearly positive: they can continue to buy cheaper car insurance in 2025, since insurers are still not allowed to raise prices as they likely would have preferred.

It is hard to keep count of how many times the RCA cap has been extended. The measure was first introduced at the end of April 2023, after Euroins entered insolvency, and has been renewed several times since then.

RCA insurance prices remain capped until 30 June 2025

At the Government meeting of 27 March 2025, the Executive adopted a decision to extend the cap on RCA tariffs by another three months, until 30 June 2025, under the same conditions as before.

The Government decision extending the RCA tariff cap was published in the Official Gazette of Romania, Part I, no. 275 of 28.03.2025, and can be read in full below:

In practical terms, the Government is keeping in force the provisions of Decision no. 1326/2023, which originally established the cap, so insurers must continue to comply and avoid increasing RCA prices.

According to the explanatory note accompanying this decision, the measure is being extended to prevent higher RCA costs in 2025, as ASF still considers there to be a risk that insurance companies could raise their tariffs.

With this new extension, car owners can be confident that, at least until 30 June 2025, car insurance will not become more expensive, or, if prices do rise, any increase must remain within the maximum level of inflation reported by INS for this period.

Buy capped RCA online

The Government decision capping RCA tariffs is mandatory for all insurance companies selling RCA policies in Romania, which means that until 30 June 2025 they must continue to offer RCA policies at capped prices.

At present, RCA can be purchased in Romania from the following motor insurers: Allianz, Asirom, Axeria, DallBogg, Eazy Insure, Generali, Grawe, Groupama, Hellas Direct and Omniasig.

All 10 of these RCA insurers are listed on our insurance platform, so if you run a cheap RCA price comparison on the platform you will receive offers from all the companies listed above.

To see how much car insurance costs, you need to complete an online RCA quote by accessing this capped RCA calculator with a single click HERE or by using the banner below, then entering the required details for your offer.

The online insurance platform will generate a RCA price table for 2025, showing capped-price offers from the RCA companies authorised in Romania, depending on the policy period you select for your RCA insurance.

Why are RCA insurance prices capped?

The reasons for extending the cap on RCA tariffs until 30.06.2025, as presented by ASF and included in the Government decision, are essentially the same as those that led to the original cap in April 2023, after Euroins entered insolvency.

These reasons are set out in the explanatory note that supported the approval of the extension and point to the continued existence of the same exceptional circumstances, which indicate an imbalance between supply and demand and could lead to negative consequences for prices, including significant increases.

In concrete terms, those exceptional circumstances are said to include:

• the inability to cover the risk faced by other road users when uninsured vehicles are on the road;
• the increased risk to road users when accidents involve uninsured vehicles, especially where serious bodily injury or death results;
• the growing need to finance the National Protection Fund, given its obligation to cover damage caused to third parties through uninsured vehicles;
• the obligation of uninsured persons responsible for accidents to reimburse, from their own resources, the damages paid from the assets of the National Protection Fund.

It is also noted that a series of amendments to national legislation on RCA insurance are currently moving through the legislative process and are intended to correct existing imbalances.

These legislative changes regarding RCA have been discussed for more than a year and, even at that time, were already on the legislative track under emergency procedure, yet they still have not been adopted.

Among the proposed changes to motor insurance legislation are: the possibility of paying RCA in instalments, or buying RCA with a deductible, the option to suspend RCA cover for a period of time, changes to the bonus-malus system, and higher fines for drivers caught without valid RCA cover.

Another argument mentioned is that BAAR is currently reviewing a change to the methodology for calculating factor “N”, which is used when classifying policyholders as high-risk insureds.

Opinions on capping RCA insurance prices

We have many customers who visit asignet.ro in search of cheap online insurance, and many of them buy RCA policies for their cars. Some of them are also in contact with us, which allows us to gather a few opinions about the RCA cap.

Below are a few opinions on the cap on insurance prices received from customers we asked about the measure adopted by the Government over the last two years of frozen car insurance prices.

We selected only a few messages from asignet.ro customers; there are more, but they would need to be censored. The clear impression among customers is that the cap has no real effect, or that its effects exist only on paper while prices continue to rise year after year.

It is enough to visit any forum where this topic is being discussed or read the comments on social media posts about it, and the conclusion is much the same: drivers do not believe the cap is stopping car insurance price increases.

There is also significant dissatisfaction among insurance brokers and their representatives, as well as agents and sub-agents. The cap on RCA tariffs has seriously affected their income.

We have read many online articles and reports about how severely this measure has affected a large number of insurance intermediaries, and about their view that the only thing truly capped by the measure is intermediation commissions, which are anyway a very small part of the total RCA premium.

There are also opinions from vehicle owners in favour of the cap, and they point to the possible penalties for driving without RCA, which helps discourage this practice, especially when prices are capped.

Of course, these are unofficial opinions expressed by policyholders. Specialists in the relevant institutions have access to statistical indicators and are able to make professional assessments of the effects of the cap.

We invite everyone reading this article to leave a comment with their opinion on the cap on RCA insurance prices. Has it had any effect? Have prices really remained frozen, or have they gone up? What has been your personal experience?

OPINIONS ON THE CAP ON RCA INSURANCE PRICES
write in the comments