The bill amends Section 27-7-6 of the General Laws in Chapter 27-7, titled "Liability Insurance," to include new provisions regarding rental vehicle coverage. The amendment specifies that an insured's private passenger automobile insurance policy will provide property damage coverage for a rented motor vehicle under 10,000 pounds for up to 60 consecutive days, without regard to negligence. This coverage will apply to all collision and comprehensive type losses.

Additionally, the bill introduces a new subsection (c), which mandates coverage for the loss of use of the rental motor vehicle. The coverage for loss of use is contingent upon the rental car company demonstrating that the vehicle sustained damage requiring 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 be made until the vehicle owner receives the property damage payment for the total loss. The bill emphasizes that coverage for loss of use must be provided regardless of fleet utilization. The act will take effect upon passage.

Statutes affected:
618: 27-7-6