New Law in Rhode Island Requires Insurers to Cover More Auto Repairs

In Rhode Island, insurers can no longer force drivers to accept total loss settlements for vehicles for which the repair costs don't exceed 80 percent of the vehicle's pre-collision value (actual cash value/ACV). In other words, the consumer can demand the insurer pay for the repair if the repair is less than 80 percent of the vehicle's ACV. Insurers must also cover all repair procedures recommended by the OEM or collision repair services like ALLDATA, RepairLogic, and CCC Repair Methods.

This change in Rhode Island's law stems from the passage of H. 6053. It passed 67-4 in the State House and 30-5 in the State Senate. Governor McKee did not sign the legislation, signaling disagreements with the bill, but he also did not veto it, which allowed H. 6053 to go into effect.

Even before this bill became law, Rhode Island stood out as the only state that gave consumers any right to demand insurers pay to repair their vehicle instead of providing a total loss settlement. Previously, consumers could exercise that right if the repair costs were less than 75 percent of the vehicle's ACV.