RCA Insurance Prices Fell in March 2022

Good news for vehicle owners: RCA insurance became cheaper in the second half of March 2022, according to information released by the main insurance brokers active on the RCA market.

In several market segments, the biggest insurance companies reduced RCA prices by significant margins, with policy prices falling by as much as 20% for certain customer categories.

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How much have RCA policies decreased?

The first market analyses show that in the second half of March 2022, several insurance companies introduced lower prices for the RCA policies they offer to customers.

Of course, these reductions vary depending on customer profile and the type of vehicle insured, but the important point is that the drop in RCA prices now covers almost the entire RCA market in 2022.

The most notable reductions are being seen for customers in rural areas or small towns with fewer than 30,000 residents, as well as for drivers who have not recorded claims — in practice, those with a bonus-malus class close to the maximum possible level, namely B8.

For these categories, discounts are substantial, between 15% and 20%, although price reductions are also being applied to other customer groups that do not fall within these criteria.

What is encouraging is that these cuts were introduced even by the companies that were already offering inexpensive RCA policies and that still hold a very large share of the RCA market. This means the drop in RCA prices is real and is being felt directly in customers’ budgets.

Based on the analyses we can make from the customers using the site, we can estimate that over the last two weeks RCA policies have become cheaper as follows:

• customers in rural areas or small towns will pay insurance premiums that are about 15% cheaper than at the beginning of the year. Some of these customers were already benefiting from the lowest RCA prices because they were the target group of Axeria, the new insurer that entered the market in 2021,
• the same customers from rural areas or small towns who also have low claim frequency, namely those in bonus-malus classes B7 or B8, will pay insurance premiums almost 20% cheaper, as they are the group most affected by this RCA tariff reduction;
• customers in medium and large cities with low claim frequency, meaning bonus classes close to the maximum, will pay insurance premiums around 10% cheaper, since they are also a category that insurers actively target;
• for other customer categories, especially those with a higher claims history, price reductions are insignificant, below 5% or sometimes absent altogether. The same is true for customers under 31, a group that already pays the highest RCA premiums.

Vehicle owners are finally receiving some good news, and prices appear to be moving onto a downward trend — something widely expected, especially after the end of last year, when the bankruptcy proceedings involving City Insurance — the insurer with the largest market share in the RCA segment — led to a substantial increase in RCA premiums.

After ASF withdrew City Insurance’s operating authorization, RCA prices surged, mainly because the other insurers were not logistically prepared to absorb the sudden flow of customers.

This was followed by a wave of RCA premium increases, in some cases of more than 100% for certain vehicle categories or for customers under 31, which placed serious pressure on the market, even though some insurers adapted by offering RCA in installments.

The market stabilized in the first part of 2022, and these price cuts are more than welcome in the current economic and social context, especially alongside the substantial increases in fuel prices.

RCA specialists believe that these lower insurance prices are also a consequence of the project initiated by the Ministry of Finance to cap RCA prices, which was put out for public debate in February.

These measures that led to cheaper RCA in 2022, adopted by most insurers, could serve as a strong argument for the Government to abandon the idea of capping RCA premiums, and they also represent a response from insurers to ASF’s calls for insurance companies selling RCA to adjust prices so they no longer rise.

Recently, ASF President Nicu Marcu said at a specialist conference that he had asked insurance companies selling RCA to find solutions to limit price increases and that the market was expected to regulate RCA tariffs on its own — something that did not happen, which is why ASF drafted and proposed the tariff cap.

Further price reductions are expected in the coming period from insurers that have not yet made any move in this direction, especially as this is necessary to remain competitive in the market.

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