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HB 6032

AN ACT RELATING TO INSURANCE -- LIABILITY INSURANCE

2025 Regular Session Introduced by Stephen Casey and 2 co-sponsors

Requires at-fault insurers to cover a reasonably comparable rental and loss-of-use for damaged vehicles, up to 60 days, with payment rules and timing.

07/05/2025 Effective without Governor's signature
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Bill Summary · HB 6032

Summary — HB 6032: AN ACT RELATING TO INSURANCE — LIABILITY INSURANCE

Status: Effective without Governor’s signature (07/05/2025)
Introduced: March 7, 2025 (House Corporations) — Substitute A (LC002280/SUB A) enacted
Primary subject: Amends R.I. Gen. Laws §27-7-6 (Rental vehicle coverage)

Note: The bill packet included unrelated draft language from a Michigan retirement-act bill; this summary covers the enacted Rhode Island Substitute A (LC002280/SUB A) that amends liability insurance rental-vehicle rules.

Purpose / Intent

To strengthen and clarify the obligations of at-fault automobile insurers to provide rental transportation and loss-of-use compensation to claimants whose vehicles are damaged in accidents, and to ensure the rental provided is reasonably comparable and priced according to local retail rates.

Key provisions

  • Extends property-damage liability coverage from an insured’s private passenger automobile policy to rented motor vehicles (under 10,000 lbs.) when liability is assumed under a written contract, for up to 60 consecutive days (subsection a).
  • Coverage applies to collision and comprehensive losses to the rented vehicle (subsection b).
  • If an at-fault insurer accepts liability for a total loss, the insurer must provide rental coverage for at least an additional seven (7) days after the claimant receives the total-loss property damage check (subsection c).
  • Loss-of-use coverage:
    • Claim limited to reasonable repair/replace time, and at minimum the daily rental rate in the rental agreement.
    • To establish loss-of-use, the rental company must show the vehicle was damaged, requires repair, and will be out of service for a period determined by a Rhode Island–licensed auto appraiser or adjuster.
    • For total loss, loss-of-use payments continue until owner receives the property-damage payment.
    • Coverage for loss-of-use applies regardless of fleet utilization (subsection d).
  • When a claimant’s vehicle is damaged, the at-fault insurer must provide, at its expense, a rental vehicle reasonably comparable in quality to the claimant’s damaged vehicle; allowable rental charges are based on local retail prices reasonably available to consumers at the time and place of rental (subsection e).

Who is affected

  • At-fault automobile insurers (primary obligations and potential additional costs).
  • Claimants whose vehicles are damaged (greater protections for rental vehicle access and loss-of-use compensation).
  • Rental car companies and auto appraisers/adjusters (procedural role in loss-of-use determinations).
  • Insureds and third parties involved in liability claims.

Timeline / Implementation

  • Enacted as Substitute A; effective upon passage (officially effective 07/05/2025).
  • No explicit phased implementation or dollar thresholds included; enforcement is through existing insurance claims processes and any applicable regulatory oversight.

Potential impacts

  • Likely increases insurers’ short-term rental and loss-of-use expenditure for at-fault claims.
  • Provides clearer consumer protections and predictable standards for rental quality and pricing.
  • Could affect negotiations between insurers, rental companies, and claimants (e.g., appraiser determinations of out-of-service period).

Compiled from official sources — confirm details with the bill’s official record.

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