Auto liability insurance premiums to increase significantly in 2008

The premiums for auto liability insurance (RCA) will go up by over 55% for individuals and by 100% for companies in 2008, according to data published by 12 of the 16 insurers authorised to close such contracts. The price increase is mainly due to the increase in the liability limits, as well as to the losses witnessed by auto liability insurers. “The claim settlement rate and the acquisition costs are high, and, if we don’t manage to set tariffs that enable us to derive a profit, we will have to cover these costs through other lines of business,” explains Iulian Dumitru, general manager of Unita. The Insurance Supervision Commission recently announced that auto liability insurance would be more expensive next year, due to an increase in the liability limits accepted by the insurers, by 50%. In the case of damage done to a car, the liability limit will be 150,000 euros in 2008, compared with 100,000 euros at present; whilst for personal injury the new limit will stand at 750,000 euros. Omniasig has operated the highest premium increases for next year. In the case of its auto liability policy for cars with engine capacities of 1,201 to 1,400 cubic cm, held by corporate entities, the price has doubled, to 706 RON per year. In the case of cars belonging to individuals, the highest increase (55%) is for cars with engine capacities of 1,601 to 1,800 cubic cm, with the tariff set at 604 RON per year.