The bill amends Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability Insurance" to include new provisions regarding rental vehicle coverage. The bill specifies that property damage coverage under a 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. It also clarifies that this coverage applies to the named insured, drivers listed on the policy, and/or their designee(s). Additionally, the bill mandates that when an insured's negligence results in a total loss of another party's vehicle, the at-fault insurance carrier must provide coverage for a rental vehicle for at least seven days after the total loss payment is issued to the aggrieved party.

The bill further stipulates that coverage must be provided for loss of use of the rental motor vehicle, with claims limited to the reasonable repair or replacement time and no less than the daily rental rate in the agreement. It also requires that in the event of an accident where the claimant's vehicle is damaged, the at-fault insurance company must provide a rental vehicle comparable in make, model, and trim level to the claimant's damaged vehicle at the insurance company's expense, with rental charges based on retail prices available to consumers at the time of renting. The act is set to take effect upon passage.

Statutes affected:
3104: 27-7-6