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 property damage 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 applies to the named insured, drivers listed on the policy, and/or their designees. Additionally, the bill mandates that in the event of an accident resulting in a total loss of another party's vehicle, the at-fault insurance carrier must provide coverage for a rental vehicle for a minimum of seven days after the aggrieved party receives the total loss property damage check.

The bill also introduces new language requiring that when a claimant's vehicle is damaged in an accident, the at-fault insurance company must provide a rental vehicle comparable in make, model, and trim level to the claimant's damaged vehicle. The rental charges are to be paid based on the retail prices available to consumers at the time the claimant rents a vehicle. The bill ensures that coverage for loss of use of a rental vehicle is provided, with the rental company required to 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. The act is set to take effect upon passage.

Statutes affected:
3104: 27-7-6