RCA Insurance Rate Cap Extended Until December 31, 2024

As expected, at its meeting on 25 September 2024, the Government decided to extend the cap on RCA insurance premiums until 31 December 2024, following a proposal from the Financial Supervisory Authority (ASF).

This means that RCA policy prices cannot rise before the end of the year, allowing every vehicle owner in Romania to continue purchasing affordable insurance.

Originally introduced for a six-month period in April 2023, shortly after Euroins had its operating authorisation withdrawn, the cap on RCA prices has since been extended several times, usually in three-month increments.

RCA insurance prices remain capped until 31 December 2024

The most recent extension had been approved at the end of June this year, but the Government has now decided to keep the measure in force until the end of 2024.

In practical terms, during the Government meeting of 25 September 2024, a decision was adopted to extend the application of Article 1, paragraphs (2) and (4), of Government Decision No. 1,326/2023, the act that first introduced the cap.

The Government Decision extending the RCA premium cap until 31 December 2024 was published in the Official Gazette, Part I, No. 972/26.09.2024, and can be consulted here or in the excerpt below:

The reasons for this latest extension of RCA price caps until 31 December 2024 are essentially the same as those used for the earlier renewals and are set out in the preamble to the decision.

That said, some of the arguments originally invoked are less relevant now, given that more than 18 months have passed since the market shock triggered by Euroins’ insolvency. The most dissatisfied parties are insurance brokers, since the cap also affects their intermediation commissions.

Even so, as noted in the article about the previous extension of the RCA price cap, there are still solid reasons to support the measure, namely the fact that the legislative changes intended to correct many market imbalances have not yet been adopted through Parliament.

Those legislative changes would bring not only a range of benefits for policyholders — including RCA paid in instalments, RCA policies with a deductible, and the suspension of RCA policies — but also a substantial increase in fines for driving without valid RCA insurance.

These RCA law amendments have been discussed for more than six months, and it is worrying that their adoption is taking so long, leaving measures such as caps on auto insurance prices necessary in the meantime.

The immediate effects of this 2024 RCA cap extension include a number of benefits, but also some negative consequences generated by the measure.

The main advantage is that capping motor insurance premiums means that RCA will not become more expensive until 31 December 2024, which brings a degree of predictability to the RCA market.

Among the most important drawbacks is the fact that a market with capped prices is far less attractive to insurers and cannot foster real competition between them.

Another disadvantage is the impact on RCA intermediaries, who sell more than 75% of policies on the market. Because intermediation commissions are also capped, their interest in the RCA product is reduced.

Buy capped RCA online at the lowest price

The main purpose of the price cap is to freeze insurance prices so that car owners can be certain their RCA policy will not become more expensive before the end of 2024.

As has been the case since April 2023, when the cap on motor insurance premiums was first introduced, it has been possible to buy capped RCA online on our platform at some of the lowest prices on the market.

If you choose to calculate your RCA price on our platform, you are guaranteed to receive capped RCA offers from all 9 insurance companies authorised in Romania, including Eazy Insure, a company that recently entered the market.

All you need to do is access this Capped RCA price comparator (click here or use the banner), enter your details, and you will receive capped RCA offers from all 9 insurance providers selling RCA in Romania.

With all the offers in front of you, you can compare RCA prices and choose the cheapest policy or the insurer you trust most, or simply the one you prefer.

If you decide to purchase insurance through our platform, you can be sure that every RCA offer generated reflects the capped prices established under the Government Decision adopted on 25 September 2024.

So whether you are looking for a 12-month RCA price, a 6-month policy, a 3-month policy, or even cover for just one month, you can use the smart-sales platform available here and receive all of these options at the capped rate.

Until 31 December 2024, the cap on RCA premiums remains in force, and this Government extension is expected to be the last in this form. From 1 January 2025, insurers will be able to set their own prices.

For those whose RCA policy expires in January or February 2025, it may be worth renewing it before 31 December 2024 in order to benefit from capped prices, since any RCA policy can be renewed on our platform up to 60 days before expiry.