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.
Impact
The impact of S0985 on state law will ensure that liability insurance coverage is specifically limited to the named insured and designated drivers under a private policy. This change could reduce ambiguity in insurance coverage during rental vehicle use and limit the exposure of insurers in cases of damage or liability claims. Moreover, the bill mandates that coverage extends to collision and comprehensive losses, and it requires that rental companies establish claims for loss of use, citing specific timeframes and conditions under which these claims can be made.
Summary
Bill S0985, introduced in the Rhode Island General Assembly, aims to amend existing insurance laws related to liability insurance for rental vehicles. The bill outlines specific conditions under which coverage will be provided for property damage liability involving rental passenger vehicles, restricting coverage to the named insured and the drivers listed on the insurance policy. This legislative adjustment seeks to clarify the responsibilities of insurers and insured individuals in the use of rental vehicles, especially in the context of accidents and damages incurred while utilizing these vehicles.
Sentiment
The sentiment around Bill S0985 appears to be largely supportive among insurance companies, as it protects their interests in terms of liability exposure. However, there may be concerns from individuals or entities that frequently rent vehicles, as the limitations imposed by the bill could restrict broader liability coverage that some might find beneficial. The discussions surrounding this bill are likely to highlight the balance between protecting insurers and ensuring adequate coverage for consumers.
Contention
Notable points of contention regarding S0985 could arise from individuals who may find the restrictions on coverage overly limiting. There is the potential for pushback from rental agencies and consumers who seek more comprehensive insurance options that cover a wider range of drivers. Furthermore, implementation of the bill could spark debates about the adequacy of insurance coverage provided to renters, particularly in catastrophic or high-damage situations. As the bill progresses, key stakeholders may voice their opinions on whether the restrictions truly serve the community's best interests.
Assures rental vehicle coverage under private auto policy, extends to the named insured and any drivers listed on the insured’s policy and requires that the insurer pay for a rental that is of like quality as the insured’s damaged rental vehicle.
Assures rental vehicle coverage under private auto policy, extends to the named insured and any drivers listed on the insured’s policy and requires that the insurer pay for a rental that is of like quality as the insured’s damaged rental vehicle.
Forbids a motor vehicle liability insurance carrier from considering the zip code of where an insured lives for purposes of calculating their policy premium.
Permits the use of telematics by motor vehicle insurance companies to record the driving habits of insured motorists for the purpose of pricing, underwriting and customer service.
Prevents insurance companies from treating widowed persons differently than married persons when establishing or maintaining an insured's rate or classification respecting the operation of a personal motor vehicle. Effective 1/1/25.
Prevents insurance companies from treating widowed persons differently than married persons when establishing or maintaining an insured's rate or classification respecting the operation of a personal motor vehicle. Effective 1/1/25.