Auto Insurance In Rhode Island: What's The Minimum Required?

If you're planning to drive in Rhode Island, it's important to understand the state's auto insurance requirements. Rhode Island mandates that all drivers carry a minimum level of auto insurance, which includes liability coverage for bodily injury and property damage. The minimum coverage limits are set at $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage. Uninsured and underinsured motorist coverage is also required, with minimum limits of $25,000 per person and $50,000 per accident. These requirements ensure that drivers can cover the costs of damages or injuries they may cause in an accident, providing financial protection for all involved. While collision and comprehensive coverage are not mandated by the state, they may be required by leasing or financing companies to protect their investment. Rhode Island operates on an at-fault system, meaning the driver deemed responsible for an accident is liable for the resulting damages and must have insurance to cover these costs.

Bodily injury liability insurance

In Rhode Island, drivers are required to have bodily injury liability insurance as part of their auto liability coverage. This insurance covers the cost of injuries you cause to others in an accident, including medical expenses and lost wages. The minimum amount of coverage required in Rhode Island is $25,000 per person and $50,000 per accident. This means that if you are at fault in an accident and multiple people are injured, your insurance will cover up to $50,000 total for all injuries, with a maximum of $25,000 per individual.

While the minimum coverage amounts are specified by law in Rhode Island, it is recommended that drivers consider their financial situation and choose coverage limits that adequately protect their assets. If you can afford it, selecting a bodily injury liability limit close to your net worth is advisable. This ensures that your insurance coverage can safeguard your savings, property, and other financial assets in the event of a costly accident.

In addition to bodily injury liability insurance, drivers in Rhode Island are also required to have property damage liability insurance, as well as uninsured/underinsured motorist coverage. These coverages protect you in the event of accidents involving property damage or uninsured or underinsured drivers.

Property damage liability insurance

If the cost of damages exceeds the amount of your coverage, you are responsible for the remaining cost. For this reason, it's important to make sure you have enough coverage to protect yourself in the event of an accident. You may want to consider raising your coverage if you own a home or other expensive items, if you normally travel in high-traffic areas, or if there are a lot of expensive vehicles driven in your area.

In addition to property damage liability insurance, Rhode Island requires drivers to have auto liability coverage for bodily injury (BI liability) and uninsured/underinsured motorist (UM/UIM) coverage. The minimum coverage for BI liability is $25,000 per person and $50,000 per accident, while the minimum for UM/UIM coverage is $25,000 per person and $50,000 per accident.

Uninsured/underinsured motorist coverage

Uninsured motorist coverage protects you if you are hit by a driver who does not have auto insurance. Underinsured motorist coverage, which is often offered alongside uninsured motorist coverage, protects you if the other driver doesn't have enough coverage to pay for the damages or injuries they caused. This type of coverage is essential because, without it, you could be left paying for medical bills or vehicle repairs out of your own pocket.

Rhode Island Requirements for Uninsured/Underinsured Motorist Coverage

In Rhode Island, the state insurance code requires every auto insurance company licensed in the state to include uninsured/underinsured motorist coverage for bodily injury (UM/UIMBI) each time it issues a new policy, but only if the policy has coverage limits higher than the state minimums. Specifically, UM/UIMBI is required when you purchase bodily injury coverage with limits higher than 25/50. In this case, UM/UIMBI coverage must be at least 25/50 but can be higher, up to the maximum limits of your bodily injury coverage.

It is important to note that Rhode Island has one of the highest percentages of uninsured motorist cases out of all insurance claims in the US (16.5% in 2019). Therefore, having adequate uninsured/underinsured motorist coverage is crucial for protecting yourself financially in the event of an accident.

Types of Uninsured/Underinsured Motorist Coverage in Rhode Island

There are two main types of uninsured/underinsured motorist coverage available in Rhode Island:

• Uninsured/Underinsured Motorist Bodily Injury (UM/UIMBI): This coverage pays for your medical costs if you are injured in an accident caused by an uninsured or underinsured driver. It also covers your passengers' injuries.
• Uninsured/Underinsured Motorist Property Damage (UM/UIMPD): Rhode Island is one of the few states that offer this optional coverage, which pays for repairs or loss of your vehicle in an accident caused by an uninsured or underinsured motorist. However, this coverage may be redundant if you already have collision coverage in your policy.

Rejecting Uninsured/Underinsured Motorist Coverage in Rhode Island

While UM/UIMBI coverage is mandatory in Rhode Island under certain circumstances, you can choose to reject this coverage. If you decide to reject it, you will need to sign a waiver form stating that you were offered the coverage but declined it.

Collision and comprehensive insurance

In Rhode Island, collision and comprehensive insurance are not required by state law. However, if you're leasing or financing a vehicle, your lender may require you to carry both types of coverage. While not mandatory, these coverages can provide valuable protection for your vehicle. For example, if you're in an accident that's your fault, collision insurance will cover the cost of repairing or replacing your vehicle. Similarly, if your car is damaged by a non-collision incident, such as theft or vandalism, comprehensive insurance will provide financial protection.

When deciding whether to purchase collision and comprehensive insurance in Rhode Island, consider factors such as the value of your car, the amount of driving you do, and your current savings. If your car is valuable and you drive frequently, especially in areas with high traffic volume, your risk of an accident is higher, and collision coverage becomes more important. Additionally, if you don't have sufficient savings to cover the cost of repairs or replacement, purchasing collision and comprehensive coverage can provide financial peace of mind.

Penalties for driving without insurance

In Rhode Island, driving without proof of financial security is illegal. Proof of financial security can be demonstrated by depositing $75,000 with the state, but it is most commonly satisfied by carrying at least the minimum required liability car insurance amounts.

Violating this law can lead to a fine of up to $1,000 and a license suspension of up to 12 months. The specific penalties depend on whether it is a first, second, or subsequent offense.

First Offense

For a first offense, you will face a fine of between $100 and $500. Your license and registration may be suspended for up to three months.

Second Offense

For a second offense, the fine increases to $500, and your driving privileges will be revoked for six months.

Third and Subsequent Offenses

If the offense is repeated for a third time or more, it is considered a civil violation. You will be penalized with a $1,000 fine and a suspension of driving privileges for up to 12 months.

Accidents

If you are involved in an accident while uninsured, you must file an accident report with the DMV, and your car's registration certificate and plates will be impounded. Your driver's license will be suspended, and the violation will be recorded on your driving record.

Verification

To enforce the mandatory insurance law, the Rhode Island DMV periodically sends requests to registered vehicle owners to verify their insurance status. Failure to respond to these requests within the time frame will result in registration revocation and a $252.50 reinstatement fee.

Frequently asked questions