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 establishes that for liability assumed under a written contract, property damage liability coverage will extend to rented motor vehicles under 10,000 pounds for up to 60 consecutive days, regardless of negligence. Additionally, it mandates that insurance companies provide coverage for loss of use of the rental vehicle, with specific criteria for establishing such claims. The bill also stipulates that if an insurance company accepts liability for a total loss of another party's vehicle, they must extend rental coverage for at least seven days after the aggrieved party receives their property damage check.

A significant insertion in the bill is the requirement that at-fault insurance companies must provide a rental vehicle that is comparable in make, model, and quality to the claimant's damaged vehicle. Furthermore, the rental charges must be based on local retail prices at the time of rental. This provision aims to ensure that claimants receive appropriate compensation and support following an accident. The act will take effect upon passage.

Statutes affected:
925: 27-7-6