The bill amends Section 27-7-6 of the General Laws in Chapter 27-7, titled "Liability Insurance," to introduce new provisions regarding rental vehicle coverage. It specifies that liability coverage for property damage will extend to rented motor vehicles under 10,000 pounds for a maximum of 60 consecutive days, applicable to the named insured and any listed drivers on the insurance policy, as well as their designees, unless specifically excluded. Additionally, the bill mandates that coverage will apply to all collision and comprehensive losses and outlines the responsibilities of insurance companies in cases of total loss, including extending rental vehicle coverage for at least seven days after the aggrieved party receives compensation for the total loss.

Furthermore, the bill establishes provisions for loss of use of the rental vehicle, stipulating that claims for loss of use will be limited to the reasonable time required for repairs or replacement, with payments based on the daily rental rate specified in the rental agreement. The rental car company must demonstrate that the vehicle was damaged and out of service, and loss of use payments will continue until the vehicle owner receives the total loss payment. Overall, the bill aims to clarify and enhance the coverage provided under private passenger automobile insurance policies for rental vehicles.

Statutes affected:
6079: 27-7-6