Rhode Island Auto Insurance
In Rhode Island, auto insurance is a necessity, not a luxury item. Under state law, all drivers in RI must have auto insurance in place. The 1993 legislation stipulates that if a person is caught driving without auto insurance in Rhode Island, their license will be suspended. Rather than take a chance and possibly lose your driving privileges, you need to arrange for at least the minimum amount of RI car insurance coverage.
Minimum Rhode Island Auto Insurance Coverage Requirements
In Rhode Island, when you register your vehicle with the DMV (Department of Motor Vehicles), you will be required to sign a statement indicating that you will keep your vehicle insured for the entire time it is registered.
You also need to carry proof of insurance in your vehicle while it is being driven. If you are asked to produce it by a police officer and you don’t have the documents with you, you will be given a short time in which to produce them.
Under Rhode Island state law, if you are found to be at fault in a motor vehicle accident, you are responsible for compensating the other driver for his or her medical expenses, vehicle repair costs, and damage to personal property.
Drivers in Rhode Island need to have the following types of insurance:
- Bodily Injury Protection
- Property Damage Insurance
Rhode Island Auto Insurance: Bodily Injury Protection
This type of insurance coverage protects you if someone is injured or killed in an auto accident where you are at fault. The insurance policy will pay for damages up to the policy limit (less your deductible). Your insurance company will retain a lawyer to represent you in any legal actions arising from the accident and cover the cost of attorney fees.
In Rhode Island, you are required to carry a minimum of $25,000 per person and $50,000 per accident. This may not be enough coverage to adequately protect your assets. Keep in mind that the reason you buy auto insurance is to shield you from being personally responsible for paying damages as the result of an accident.
The minimum amount may seem like a lot of money but, if someone is seriously hurt and has to stay in the hospital for an extended period of time, the $25,000 for medical expenses is used up very quickly. Once the insurance company has paid up to the policy limit you choose, any other money will have to come out of your own pocket.
Some people end up having to sell off the things they have worked so hard to accumulate, such as their home and/or vehicle to try to pay this debt. Others end up declaring bankruptcy because they are not able to meet this obligation.
It’s not unreasonable to carry bodily injury insurance in the hundreds of thousands of dollars nowadays. Your insurance company or your independent insurance agent will be able to advise you on how much bodily injury protection you should have in place to protect your property.
Rhode Island Car Insurance: Property Damage Insurance
Rhode Island drivers are required to carry at least $25,000 in property damage insurance. This insurance pays for the cost of repairing damage to property, such as:
- The Other Driver’s Vehicle
- A Mailbox
- A Shed
- A Fence
- A Structure, such as a Home, Shed, or Other Type of Building
Property damage insurance also covers the cost of defending any legal action brought against you by another driver. The insurance company will pay damages up to the policy limit you have chosen. Be sure that you understand the terms and conditions of the property damage insurance policy you are considering before you commit to buy it.
When the insurance company talks about policy limits, they mean policy limit per accident. If you are unfortunate enough to be involved in more than one accident that is your fault, you have coverage for each claim made against you up to the amount listed on your policy. Be wary of setting your policy limit too low; the state minimums are just that. Minimums. You may need more coverage, depending on your personal situation.
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