Provides for mandatory uninsured motorist coverage.
This legislation aims to enhance the financial protection of individuals involved in motor vehicle accidents with uninsured or underinsured drivers. By mandating uninsured motorist coverage, the bill addresses a significant gap in protection for victims, ensuring they are not left with substantial expenses when the at-fault driver lacks adequate insurance. The law is set to take effect on January 1, 2025, and will apply prospectively to new or renewed policies, thus promoting a gradual transition for insurers and policyholders alike.
Bill S3043 proposes mandatory uninsured motorist coverage for all motor vehicle insurance policies delivered or issued in the state of Rhode Island. The bill dictates that any insurance policy insuring against liability resulting from accidents must include uninsured motorist coverage for bodily injury or death at limits set by existing laws. Insurers will be required to provide coverage equal to the insured’s bodily injury liability limits. Additionally, policyholders will have the option to select lower limits and can reject property damage coverage under specific conditions.
Notable points of contention may arise regarding the implementation of mandatory coverage, including concerns about increased insurance premiums for consumers due to the broader coverage requirements. Some legislators and industry stakeholders might argue that mandating such coverage could place an additional financial burden on drivers, particularly those already struggling with the costs of insurance. However, proponents argue that the risks posed by uninsured motorists warrant such regulations for public safety and financial security.