As a driver, it is essential to fully understand the importance of civil auto liability insurance. Civil auto liability insurance, or RCA (Răspunderea Civilă Auto), is designed to protect drivers in the event of damage. It is a mandatory contract between vehicle owners, whether individuals or legal entities, and an authorized insurance company.
The two main objectives of mandatory RCA insurance are:
- Financial protection for the person responsible for causing the accident. Without insurance, the injured party may seek compensation in court for material and moral damages.
- Financial protection for the injured party in the accident. This ensures that the injured will receive compensation for any material or moral damage suffered, regardless of the financial situation of the responsible party. It is important to note that RCA insurance benefits both the third party who suffers damage and the person who caused the damage.
Challenges related to civil auto liability for drivers
Every driver faces risks associated with road accidents, and civil auto liability plays a key protective role. While RCA insurance is mandatory, many drivers do not fully realize the challenges that may arise following an accident. Additionally, drivers may not be aware of how much their behavior in traffic can influence both costs and legislation.
Traffic accidents
Whether it’s a minor or a serious accident, there will be consequences. In a minor accident, both parties involved, the injured and the responsible driver, must provide the necessary documents to complete the damage claim. The injured party will contact the insurance company after completing the amicable settlement. In the case of a serious accident, which may involve bodily injuries, the victims can request substantial compensation. Moreover, the responsible party could be held liable in court, and a legal process involves a lengthy resolution period and significant costs. It is important to discuss this aspect with your insurance broker to ensure you are fully informed.
Financial consequences
The costs of material damage or serious, permanent bodily injuries may exceed the financial means of the responsible driver. Medical expenses for permanent injuries can reach enormous amounts. Additionally, the repair costs for damaged properties may place significant pressure on the responsible driver. The uncertainty surrounding the extent of damage is another challenging aspect of civil auto liability insurance policy for motor vehicles. Without civil auto liability insurance, the driver risks being unable to pay these compensations. The direct consequence of such negligence can be forced execution or the loss of personal property. Furthermore, the driver will receive a fine and may risk having their car impounded by the police if it is parked on public property.
The cost of insurance influenced by the frequency and severity of accidents
The cost of civil auto liability insurance may vary from one insurance company to another and depends on the area. In this context, statistics on traffic accidents play an important role in determining the risk level associated with vehicle operation, and, consequently, the cost of insurance. Moreover, these statistics can influence legal regulations regarding insurance. There is significantly higher insurance costs for vehicles registered in areas with a high number of serious accidents. In such cases, insurance companies will adjust their prices to account for the additional risks associated with that area.
Insurance solutions
Although there are several types of policies offering different levels of coverage, the most common are mandatory civil liability auto insurance (RCA) and optional CASCO insurance. Other policies may also cover additional risks.
Mandatory civil liability auto insurance (RCA)
RCA coverage is intended solely for damages caused to other people or vehicles and is mandatory by law. It does not cover damage to the driver’s own vehicle. In this case, the damage to the responsible driver’s car will be covered from their own resources. The company that issued the policy pays compensation to the injured parties following an accident caused by the vehicle covered by the policy.
If the RCA policy is lost or destroyed, the insured can request a duplicate from the issuing insurer. The duplicate holds the same legal value and contains the same information as the original. Consult with your insurance broker on the steps to take in such cases.
Optional CASCO insurance
CASCO insurance is optional for each driver and aims to protect the vehicle for which the policy is issued. The insurance company pays compensation for accidental damage and/or theft of the insured vehicle listed in the policy. The damage or theft can be partial or total. The general risks covered by this insurance includes:
- Damages (collisions, impacts, accidents with other vehicles, animals, or any other moving or stationary objects); fire, explosion, lightning, weather phenomena, flooding, earthquakes, landslides, snow load, avalanches.
- Theft (of the entire vehicle, including damages resulting from attempted theft and/or theft of parts).
- Vandalism, riots, strikes, civil unrest.
The CASCO policy is issued after a risk inspection of the vehicle. The vehicle is insured at its actual value at the time of the policy’s issuance or renewal. The actual value represents the vehicle’s resale value at the time of the insurance.
Supplementary insurance
There are certain optional insurance policies or additional options that drivers can add to their policies. These are introduced to expand coverage and ensure complete protection in various scenarios.
Clauses that can be added to a CASCO insurance policy:
- Loss or theft of keys
- Water damage to the engine
- Off-road driving (driving outside public roads)
- Automatic reinstatement of the insured sum
- Repairs at the brand’s authorized service center
- Extended roadside assistance
- Damage exclusively to rims and tires
Accident insurance for people (driver and passengers), and luggage
This may include compensation for bodily injuries suffered by passengers, which are not always covered by mandatory RCA insurance.
Additional options in the policy
You can opt for direct settlement, meaning your insurer will pay directly to the service center that will repair your car, without having to wait for the insurer of the driver who hit your vehicle to settle. Another additional option is roadside assistance, which provides peace of mind in case of a breakdown. Both options involve an additional cost.
How to choose a civil liability auto insurance policy
RCA insurance can be purchased from any insurance company authorized by the ASF (Financial Supervisory Authority) or from insurance brokers. Before choosing the policy, there are a few conditions to meet:
- The vehicle must be registered or subject to registration or recorded in Romania.
- The insured must be an individual or a legal entity listed in the vehicle’s identification documents, or the person in whose name the vehicle is to be registered (this also applies to vehicles purchased through leasing).
Factors to consider when choosing a civil liability auto insurance policy include:
Price comparison among insurers
Each insurance company evaluates risk factors independently. As a result, there will be differences between the offers you receive.
Driver experience and history
The bonus-malus system determines the RCA insurance premiums based on the insured’s history. In other words, drivers who do not cause accidents will be rewarded with lower premiums, while those who have had accidents within a certain reference period will pay higher premiums.
Vehicle type
The type of car, make, model, age, and engine capacity are factors that influence the cost of RCA insurance.
Coverage limits and specific clauses
It is important to discuss with your insurance broker which damages are not covered by the RCA policy and how additional options can be added.
Recommendations for performance drivers
Drivers who participate in races or sports events and own a performance vehicle registered in Romania, authorized to drive on public roads, are also required to have civil liability auto insurance. In Romania, the organization and participation in sports competitions are regulated by the FRAS (Romanian Federation of Motor Sport). Such events require special insurance policies. These policies can provide coverage for the civil liability of participants as well as accidents that may occur during the competitions. Performance drivers must be aware of the risks associated with driving a powerful vehicle and take additional protective measures accordingly.
Some insurance companies offer “telematic” programs. These allow drivers to install devices in their vehicles to monitor driving behavior. There are specific conditions to meet, but the advantage of this program is that it can result in a discount on CASCO insurance depending on the type of driver you are. If you are in this situation, discuss the details with a broker.
As a future owner of a performance vehicle, you should know that insurance premiums for such vehicles are higher compared to regular cars. Characteristics like a powerful engine, high performance, and advanced technologies increase the risk of severe damage in the event of an accident. Insurers calculate the costs based on the risk level.