Rhode Island Auto Insurance Laws, Minimums, Requirements
What mandatory auto insurance laws exist in Rhode Island?
- Auto insurance is mandatory in Rhode Island is mandatory. The minimum coverages required by law are $25,000/$50,000 bodily injury liability and $25,000 for property damage.
- In order to register a vehicle in Rhode Island, you must sign a statement that says you will maintain continuous insurance coverage during your registration period.
- You must carry proof of insurance at all times. If you get caught without proof of insurance or without any insurance at all, your license will be taken away until you provide proof of coverage.
What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):
If you buy automobile insurance in Rhode Island, your policy must include minimum liability coverage of:
$25,000/$50,000 bodily injury liability
and
$25,000 for property damage
What are the Rental Car Insurance Requirements?
In Rhode Island, insurance is mandatory on all vehicles. This includes rental cars. Rental cars must carry the minimum liability coverages required under Rhode Island law. It is important to keep in mind that most Rhode Island auto insurance policies include enough coverage for car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.
What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?
Uninsured/Underinsured Motorist Coverage is not required in Rhode Island. Because Rhode Island follows a Tort system, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. The recommended amount of Uninsured/Underinsured Motorist Coverage is $25,000/$50,000 for bodily injury.
What are the rules pertaining to the exclusion from coverage of a driver living in household?
In Rhode Island, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section of the policy, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to be sure that all household members that will be driving your car are listed in your auto insurance policy. Examine your auto insurance policy carefully before signing on the dotted line.
What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?
If your insurance lapses in Rhode Island, this means you are not covered. If you get caught without insurance, your license will be taken away until you provide proof of coverage.
What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?
In Rhode Island, insurance companies can use your personal credit history to determine rates and offers for products. It is important to keep in mind that auto insurance companies do not use Personal Credit History alone to figure rates. They also consider age, gender, where you live, car make and model, how much you drive, and driving history.
Is the state a No Fault or Tort state? What does either mean to the policy owner?
Rhode Island follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Rhode Island is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums.
What is the average auto insurance premium in this state? As of what year?
As of 2006, Rhode Island resident’s average insurance premium was approximately $1,038, the 7th most expensive in the nation. This was down 2.2% from the previous year. The national average was $817.
Sources
Insurance Information Institute
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