Restricts private vehicle property damage insurance coverage for a rental passenger vehicle, to the named insured and drivers listed on that private policy, unless the designated driver is specifically excluded.
The bill creates a more structured approach to how liability insurance handles rental vehicles, potentially simplifying the coverage process for insured parties. It limits coverage to named individuals on the insurance policy unless otherwise noted, which may prevent confusion during claims in case of an accident involving rental vehicles. This could lead to more streamlined insurance operations, benefiting both consumers and insurance companies by minimizing disputes over coverage eligibility.
S0985 is a legislative act introduced to amend provisions related to liability insurance, specifically concerning rental vehicles in the state of Rhode Island. This bill aims to clarify the insurance coverage provided for rental vehicles, mandating that liability insurance under a private passenger automobile policy must cover rented vehicles up to 10,000 lbs for up to 60 consecutive days. Coverage will apply to accidents causing property damage, extending to all collision and comprehensive losses incurred during the rental period.
While S0985 aims to provide clearer guidelines, discussions around the bill may reveal concerns regarding its impact on drivers not explicitly listed on insurance policies. Opponents may argue that such restrictions could complicate insurance claims for rentals and create inequities for individuals who might need to drive a rental but are not named on the policy. Furthermore, clarity on the interim coverage for loss of use in the event of a total loss of the rental vehicle could be contentious, as it places the burden on rental companies to prove damages and timelines for payments.