Rhode Island Auto Insurance
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Rhode Island Auto Insurance Requirements
To protect all drivers, Rhode Island state law wants assurance that all drivers are capable of satisfying the Financial Responsibility laws, should one of those drivers cause an accident.
Rhode Island drivers must have is liability
Like most other states, the main type of coverage Rhode Island drivers must have is liability. With this coverage, you transfer responsibility for the damage you cause in an accident to your auto insurance company.
Three main types of insurance
Basic liability consists of three components: Bodily Injury (BI), Property Damage (PD) and Uninsured/Underinsured Motorist (UM/UIM). Here are the liability minimums Rhode Island mandates and a brief explanation of what the insurance covers.
- Bodily Injury: This coverage pays the medical expenses, pain and suffering and lost wages for which you have been found legally responsible. Minimum limits are $25,000 per person and $50,000 per accident when the accident involves two or more people.
- Property Damage: This coverage pays the cost to repair any property damage that your at-fault accident caused. This includes damage done to the other party’s vehicle, as well as property in general including buildings, fences, signs, etc. The Rhode Island minimum limit for PD liability is $25,000 per accident.
- Uninsured/Underinsured Motorist: If you’re in an accident and the at-fault party is uninsured, or is a hit and run driver, this coverage pays for your bodily injury expenses. If the at-fault driver has insurance, but not enough, your underinsured motorist coverage will usually pay the difference. You can decline UM/UIM only if you choose the state minimum limits for BI and PD.
Optional Collision and Comprehensive coverage
None of the above mandatory coverage pays for any physical damage to your vehicle. For this you need to purchase optional Collision and Comprehensive coverage. Collision pays your vehicle’s repair costs when you collide with an object such as a tree or other vehicle. Comprehensive pays when damage is caused by reasons beyond your control like theft and floods. You’ll have to satisfy your deductible before this insurance pays any bills. While considered optional, it may be required by the lender/lessor if the car being insured is leased or financed.
Rhode Island Department of Business Regulation
More information on Rhode Island auto insurance laws is available by calling the Department of Business Regulation at 401-222-2246 or by visiting www.dbr.state.ri.us/.