Rhode Island Car Insurance
Automobile liability contains three parts: bodily injury liability, property damage liability, and uninsured/underinsured motorist coverage. Bodily injury liability insurance pays for injury to other persons, including medical expenses, lost wages, and pain and suffering, in an accident for which you are at fault. Property damage liability insurance pays for damage to property in an accident for which you are at fault. Uninsured motorist coverage pays you if you are injured by an uninsured or hit-and-run driver, or pays the difference if hit by an underinsured driver.
Physical damage to an automobile is covered by collision coverage and comprehensive coverage. Collision coverage pays for damages resulting from a collision with another car or an object. Comprehensive coverage pays for other covered events, like vandalism, theft, and falling objects. Medical payments coverage, rental reimbursement coverage, and towing and labor coverage are all optional coverages that may be added to a policy. Car insurance in Rhode Island is based on the tort system when settling losses caused by auto accidents, where all drivers carry liability insurance to protect one another in the event of an accident. Rhode Island requires a minimum coverage for liability insurance for all drivers:
Required Coverages in Rhode Island:
- Bodily Injury Liability Per Person: $25,000
- Bodily Injury Liability Per Accident: $50,000
- Property Damage Liability: $25,000
The Rhode Island Automobile Insurance Plan, commonly known as the “assigned risk pool,” aids consumers who are refused coverage from a regular insurer by placing them in the assigned risk pool and distributing them among insurers based on their market share. Insurers are required to remove the assigned risk pool insured consumers one year after having three years of a satisfactory driving record.
Determining Your Rate in Rhode Island
When considering whether or not to underwrite your auto insurance policy, an auto insurance company will take into account certain characteristics. Most look at where you live, your age, gender and marital status, your claims history, the vehicle insured and its use, and your credit score. According to the Rhode Island Insurance Department, the greatest influence on your premium is your claims frequency, or how often claims occur within a group relative to the number of policies in that group.
Discounts may be applied to your premium for having multiple vehicles on the same policy, for taking driver education courses, for the installation of safety devices, for maintaining a low annual mileage, or for maintaining a good driving record. According to the Insurance Information Institute, Rhode Island was the seventh most expensive state for automobile insurance in 2009, with an average expenditure of $969.