Car Accident in Romania Caused by a Romanian-Insured Vehicle: What Foreign Vehicle Owners Need to Know About Loss of Use Compensation

This article is intended for foreign citizens and companies whose vehicles—regardless of where they are registered—have been damaged in traffic accidents occurring in Romania, where the at-fault driver holds a valid Romanian RCA (MTPL) insurance policy.

While repair costs are often the most visible consequence of such incidents, an important and frequently overlooked component of recoverable damages is loss of use—that is, the period during which the vehicle is unavailable due to repairs or technical assessment.

This article focuses specifically on the compensability of loss of use under Romanian law, without covering the procedural rules related to insurance claims, as these are comprehensively regulated under Law No. 132/2017 and Rule No. 20/2017.

We will explain how Romanian legislation addresses this specific type of damage, what documentation is required to support such claims, and how compensation can be obtained—even if the repair or loss of use occurs outside Romania.

1.     Legal Basis for Loss of Use Compensation Claims in Romania.

Under Romanian law, claims for loss of use are considered part of broader insurance claims and are fully recoverable.

This is explicitly regulated by Law No. 132/2017 on Compulsory Motor Third-Party Liability (MTPL) Insurance, which covers damages caused to third parties by vehicle and tram accidents. Specifically, Article 11(2)(d) provides that: “the MTPL insurer shall compensate damages arising from the inability to use the damaged vehicle, including its temporary replacement, at the injured party’s discretion.”

Even if the injured party uses their own insurer to cover the damage (e.g., under CASCO), the Romanian insurer remains liable to reimburse all related costs through the right of recourse mechanism ( This obligation is set out in Article 19(6)(c) of Rule 20/2017 on Motor Vehicle Insurance).

For instance, if Vehicle A (liable) and Vehicle B (injured) are involved in a collision, and B’s CASCO insurer covers both the repairs and the cost of a temporary replacement vehicle, all expenses that will incur, including those related to loss of use, will be reimbursed by A’s MTPL insurer. This principle applies even when the parties or insurers are based in different EU countries, such as Romania, Germany, or elsewhere.

A more detailed legal framework is provided by Rule No. 20/2017 ( specificaly by Article 25) which outlines both the conditions and documentation required to claim compensation for loss of use. According to this rule:

• Compensation is granted for the period during which the vehicle is technically unusable and under repair;

• The replacement vehicle must be of a similar or lower class and rented from an authorized company;

• The claim must be supported by evidence, such as invoices or rental agreements, that prove the loss and its duration.

These legal provisions apply within the liability limits established by the MTPL insurance contract, and only if the insured event occurred during the policy’s period of validity.

2.      Recognized Mobility Solutions During Repairs and Supporting Documentation Requirements.

During the period in which a damaged vehicle is under repair, Romanian law recognizes two primary categories of compensable mobility alternatives:

• Vehicle Rental – This is the most straightforward method of proving loss of use. According to Article 25 of Rule No. 20/2017, the rented vehicle must be of a class similar to or lower than the damaged vehicle.

• Alternative Transport Costs – This includes expenses for public transportation, taxis, or ride-sharing services such as Uber or Bolt.

  
  

To support a claim for loss of use—whether submitted directly to the MTPL insurer or presented in court—the following documentation is typically required:

• Rental agreement and invoice, showing the vehicle class, daily rental rate, and rental period;

• Receipts for taxi fares, ride-sharing, or public transportation;

• Service order or repair invoice clearly indicating:

  • the date the vehicle entered and exited the repair shop, and

  • the estimated and actual duration of the repairs;

• Proof of vehicle necessity, if relevant—e.g., evidence that the vehicle is essential for work or used in a remote area without alternative transport options.

  
  

Romanian case law confirms that the method of calculating compensation—including loss of use—is binding on the MTPL insurer of the liable party. Courts have repeatedly ruled that an insurer cannot reject compensation simply because the injured party did not select the lowest-cost alternative.

However, compensation may be challenged if the claimant acts unreasonably—for example, by renting a high-end or luxury vehicle that significantly exceeds the class of the damaged car, or by extending the rental period without justification.

It is important to note that compensation must remain reasonable, necessary, and foreseeable. To avoid disputes, claimants should ensure their expenses align with these criteria.

3. Cross-Border Considerations: Use of the Schwacke Table and German Valuation Practices

In Germany and several other EU countries, compensation for loss of use is often granted even when the injured party does not rent a replacement vehicle. Instead, damages are calculated using standardized daily rates published in the Eurotax-Schwacke Tabelle, a well-established vehicle valuation tool.

Romanian courts, as well as the Policyholders’ Guarantee Fund (Fondul de Garantare al Asiguraților), have recognized this method as a valid reference—particularly in cross-border claims. Article 19 of Rule No. 20/2017 expressly allows for such valuation systems to support compensation calculations.

Thus, when the damaged vehicle is repaired outside Romania—such as in Germany—a loss of use claim submitted to a Romanian MTPL insurer may be substantiated through a German expert report based on the Schwacke Table. These reports typically include a detailed breakdown of:

• the repair duration,

• estimated daily loss of use value, and

• overall financial loss attributable to the vehicle’s unavailability.

  
  

This approach allows foreign claimants to prove loss of use without relying exclusively on rental invoices, which may be unavailable or irrelevant depending on the case. It also facilitates fair cross-border compensation by relying on valuation standards widely accepted within the EU.

4. Final Remarks

Cross-border vehicle accidents involving Romanian MTPL insurers are governed by a clear and enforceable legal framework that supports compensation for both direct damages and loss of use. Whether relying on formal documentation or recognized valuation systems such as the Schwacke Table, the success of a claim depends on meeting legal requirements and presenting credible evidence.

Engaging a legal team with specialized expertise in Romanian and EU motor insurance law is crucial to navigating these claims effectively. With local knowledge and procedural experience, claimants can ensure compliance, expedite processing, and maximize compensation.

If your vehicle has been damaged in Romania by a Romanian-insured driver, do not hesitate to seek professional guidance to protect your rights and secure fair compensation—regardless of where the repair takes place.

Author: Paul Andrei Ciorba

For more details, visit us or book a phone or video call — see our contact information below. We speak English, German, Italian, Hungarian, and Romanian.

Talpeș - SCPA (Law Firm)

str. Avram Iancu, nr. 16, ap. 9

400089 Cluj-Napoca, Romania

tel:+40364133211

office@talpes.law

https://www.talpes.law