Restricts private vehicle property damage insurance coverage for a rental passenger vehicle, to the named insured and drivers on that private policy, unless the designated driver is specifically excluded.
Summary
H6079 amends Rhode Island’s liability insurance laws governing rental vehicle coverage. The bill requires that, when a private passenger auto policy provides property damage coverage for a rented motor vehicle under 10,000 pounds, that coverage applies to the named insured and any drivers listed on the policy, and to any designee unless that designee is specifically excluded. It also states that this coverage applies to collision and comprehensive losses.
The bill adds several related rental-car protections and claim rules. If an insurer accepts liability in an accident that totals another party’s vehicle, the at-fault insurer must provide rental vehicle coverage for at least seven additional days after the damaged vehicle owner receives the total-loss payment. The bill also requires coverage for loss of use of a rental vehicle, limits such claims to the reasonable repair or replacement period, and ties the amount to the daily rental rate in the rental agreement. It further specifies how loss of use is established and makes clear that such coverage applies regardless of fleet utilization.
Impact
This act amends Rhode Island General Laws § 27-7-6 in the chapter on liability insurance. It narrows and clarifies how private passenger auto policies extend property damage coverage to rental vehicles, while also imposing new obligations on insurers regarding rental reimbursement, loss-of-use claims, and post-total-loss rental coverage. The practical effect is to define who is covered under a policy when a rental car is involved and to standardize insurer responsibilities in rental-related property damage claims.
Sentiment
The available voting record suggests broad support for the bill. It passed the House Committee on Corporations unanimously on a 13-0 vote, then passed the House 69-3 and the Senate 35-0. No committee transcript was provided, but the strong margins indicate the measure was generally viewed favorably and as a technical or consumer-protection-oriented insurance change rather than a controversial policy shift.
Contention
The main policy issue appears to be the scope of rental vehicle coverage under private auto policies, especially whether coverage should extend broadly or be limited to named insureds, listed drivers, and designees not specifically excluded. Another point of potential contention is the insurer’s obligation to continue rental coverage after a total-loss determination and to pay loss-of-use claims even when fleet utilization is not affected. The few dissenting votes in the House suggest some concern about the bill’s impact on insurer liability or claim costs, though the opposition was limited.