Rhode Island Auto Insurance Requirements

Minimum Liability Coverage

Rhode Island General Laws § 31-31-7 establishes mandatory minimum auto insurance coverage for all registered vehicles.

Standard Minimum Coverage: 25/50/25

Exam Tip: Memorize "25/50/25" for Rhode Island minimum auto insurance requirements. This appears frequently on the exam.

Alternative Single-Limit Option

Rhode Island allows drivers to choose a single-limit policy instead of split limits:

• Single Limit: $75,000 combined coverage
• Covers any combination of bodily injury and property damage
• More flexibility in claim payment
• Total cannot exceed $75,000 per accident

Example Single-Limit Application:

If you cause an accident with one injured person requiring $60,000 in medical expenses and $20,000 in property damage:

• Total: $80,000 in damages
• Single-limit policy pays: $75,000 maximum
• You pay out-of-pocket: $5,000

Uninsured/Underinsured Motorist Coverage

Rhode Island Regulation 230-RICR-20-05-1 mandates UM/UIM coverage.

UM/UIM Requirements

What UM/UIM Covers

Uninsured Motorist (UM):

• Bodily injury caused by driver with no insurance
• Hit-and-run accidents where driver cannot be identified
• Accidents with stolen vehicles
• Minimum property damage: $25,000

Underinsured Motorist (UIM):

• Bodily injury when at-fault driver's limits are insufficient
• Covers the gap between at-fault driver's coverage and your damages
• Kicks in after at-fault driver's liability exhausted

UM/UIM Rejection Requirements

To reject UM/UIM coverage, the named insured must:

1. Written rejection required - Must be in writing
2. Signature required - Named insured must sign
3. Cannot reduce below minimums - Unless purchasing minimum liability limits
4. If minimum liability purchased - Can reduce UM/UIM to zero
5. Offer required - Insurer must offer limits equal to liability limits

Exam Tip: UM/UIM coverage is MANDATORY in Rhode Island unless the named insured rejects it in writing. If they purchase minimum liability limits (25/50/25), they can reject UM/UIM entirely.

Fault-Based Insurance System

Rhode Island uses a traditional fault-based (tort) system.

How Fault-Based System Works

Modified Comparative Negligence

Rhode Island follows the modified comparative negligence rule:

• Plaintiff can recover damages if less than 50% at fault
• Damages reduced by plaintiff's percentage of fault
• If plaintiff is 50% or more at fault, no recovery allowed

Example:

Accident damages total $100,000:

• Plaintiff 20% at fault, defendant 80%: Plaintiff recovers $80,000 ($100,000 × 80%)
• Plaintiff 40% at fault, defendant 60%: Plaintiff recovers $60,000 ($100,000 × 60%)
• Plaintiff 50% at fault, defendant 50%: Plaintiff recovers $0 (50%+ at fault = no recovery)

Proof of Insurance

Mandatory Proof Requirements

Rhode Island law requires drivers to:

• Carry proof of insurance at all times
• Present proof to law enforcement upon request
• Provide proof at accident scenes
• Show proof for vehicle registration

Acceptable Forms of Proof

Penalties for No Insurance

Auto Insurance Policy Provisions

Mandatory Policy Provisions

Rhode Island requires certain provisions in all auto policies:

1. Named Insured Coverage

   • Policy must cover named insured
   • Spouse automatically covered if resident of household
   • Resident relatives covered for liability

2. Permissive Use Coverage

   • Policy extends to permissive users
   • With named insured's permission
   • Temporary use of vehicle

3. Omnibus Clause

   • Extends coverage to additional persons
   • With reasonable belief of permission
   • Protects innocent third parties

4. Policy Period and Territory

   • Policy must state effective dates
   • Coverage in United States and Canada
   • Coverage for vehicles garaged in Rhode Island

Additional Coverage Options

Vehicle Registration and Insurance

Registration Requirements

To register a vehicle in Rhode Island:

1. Proof of insurance required
2. Insurance must meet minimums (25/50/25)
3. Insurance company must be licensed in Rhode Island
4. Electronic verification through state system

Insurance Company Reporting

Rhode Island uses an electronic verification system:

• Insurers report policies to DMV electronically
• Real-time verification at registration
• Automatic notification of policy cancellation
• DMV receives updates within days

Registration Suspension

DMV will suspend registration if:

• Insurance policy cancelled
• Insurance lapses
• Proof of insurance not provided
• Minimum coverage not maintained

Exam Tip: Rhode Island has electronic insurance verification. When a policy is cancelled, the DMV is notified electronically and can suspend registration.

Special Situations

Out-of-State Drivers

Commercial Vehicles

Higher limits often required:

• Commercial trucks: Higher liability limits
• For-hire vehicles: Additional coverage requirements
• Delivery vehicles: Commercial auto policy required
• Business use: Personal auto may not cover

Excluded Drivers

Rhode Island allows named driver exclusions:

• Specific drivers can be excluded from coverage
• Exclusion must be in writing
• Excluded driver has no coverage under policy
• Often used for high-risk household members
• Insurer not liable for excluded driver's accidents

SR-22 Certificate

What is SR-22?

SR-22 is proof of financial responsibility required for high-risk drivers.

SR-22 Requirements

To obtain SR-22:

1. Purchase auto insurance meeting state minimums
2. Request SR-22 from insurance company
3. Pay filing fee (typically $25-$50)
4. Insurer files electronically with DMV
5. Maintain continuous coverage for required period

SR-22 Violations

If SR-22 coverage lapses:

• DMV notified automatically by insurer
• License suspended immediately
• Registration suspended
• New SR-22 required for reinstatement
• Clock resets on 3-year requirement

Claims Process

First-Party Claims (Your Own Insurance)

Steps for filing with your own insurer:

1. Report accident to insurer promptly
2. Provide details (date, time, location, parties involved)
3. Submit documentation (police report, photos, estimates)
4. Cooperate with investigation
5. Receive payment for covered damages

Third-Party Claims (Other Driver's Insurance)

Steps for claiming against at-fault driver:

1. Obtain at-fault driver's insurance information
2. Report claim to their insurer
3. Provide evidence of fault and damages
4. Negotiate settlement with adjuster
5. Consider attorney if serious injuries or disputes

Uninsured/Underinsured Motorist Claims

Process for UM/UIM claims:

1. File police report documenting accident
2. Report to your insurance company
3. Prove other driver uninsured/underinsured
4. Submit medical bills and records
5. May require arbitration if dispute

Exam Tip: For UM claims, the insured must prove the other driver was uninsured or underinsured and that the other driver was at fault.