The bill amends Section 27-7-6 of the General Laws in Chapter 27-7, titled "Liability Insurance," specifically addressing rental vehicle coverage. It mandates that property damage liability coverage under an insured's private passenger automobile insurance policy shall extend to rented motor vehicles under 10,000 pounds for up to 60 consecutive days without regard to negligence. The coverage includes all collision and comprehensive type losses.

New insertions to the law include a requirement for insurance companies to provide rental vehicle coverage for at least an additional seven days after the aggrieved party receives a total loss property damage check, in cases where their insured is at fault for an accident resulting in a total loss of another party's vehicle. Additionally, the bill stipulates that coverage must be provided for the loss of use of the rental motor vehicle, with claims limited to the reasonable time required to repair or replace the vehicle, and not less than the daily rental rate specified in the rental agreement. The rental car company must demonstrate that the vehicle requires repair and will be out of service for a period determined by a Rhode Island licensed auto appraiser or adjuster. In the event of a total loss, loss of use payments will continue until the vehicle owner receives the property damage payment for the total loss. This coverage is provided regardless of fleet utilization. The act will take effect upon passage.

Statutes affected:
6027  SUB A as amended: 27-7-6
6027  SUB A: 27-7-6
6027: 27-7-6