2025 -- H 6032

========

LC002280

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

____________

A N   A C T

RELATING TO INSURANCE -- LIABILITY INSURANCE

     Introduced By: Representatives Voas, Casey, and DeSimone

     Date Introduced: March 07, 2025

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability

Insurance" is hereby amended to read as follows:

     27-7-6. Rental vehicle coverage.

     (a) For liability assumed under a written contract, coverage shall be provided under the

property damage liability section of an insured’s private passenger automobile insurance policy.

Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds

(10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days.

     (b) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive type

losses.

     (c) Whenever liability is accepted by an insurance company involving an accident that

results in their insured’s causing a total loss of the other party’s vehicle, the at-fault carrier shall

extend coverage for a rental vehicle for not less than an additional seven (7) days after the aggrieved

party receives the total loss property damage check.

     (d) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that a

claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace

the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To

establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained

damage, regardless of fault, requires repair, and will be out of service for the period of time

determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of

use payments shall be made up until the time the vehicle owner receives the property damage

payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided

regardless of fleet utilization.

     (e) Whenever a claimant’s vehicle is damaged in an accident, the at-fault insurance

company shall provide at its expense, a rental vehicle that is comparable in like, kind and quality

(i.e. make, model, and the closest comparable trim level available at the time), to the claimant’s

damaged vehicle, and rental charges to be paid shall be based on the local retail prices available to

consumers at the date and time a claimant rents a vehicle.

     SECTION 2. This act shall take effect upon passage.

========

LC002280

========

LC002280 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- LIABILITY INSURANCE

***

     This act would require at fault insurance companies to provide to any claimant whose

vehicle is damaged in an accident, to provide a vehicle that is comparable to the claimant’s vehicle

and that rental charges shall be based on local retail prices.

     This act would take effect upon passage.

========

LC002280

========

LC002280 - Page 3 of 3