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Bill

SB 985

AN ACT RELATING TO INSURANCE -- LIABILITY INSURANCE -- RENTAL VEHICLE COVERAGE

2025 Regular Session Introduced by Pete Appollonio and 2 co-sponsors

Rhode Island now requires rental car companies to automatically provide customers with basic liability insurance coverage unless explicitly declined, effective immediately.

07/05/2025 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · SB 985

Legislative bill overview

SB 985 requires rental car companies in Rhode Island to provide basic liability insurance coverage to customers who rent vehicles, unless the customer explicitly declines coverage. The bill establishes minimum coverage limits and terms for this mandatory included coverage, shifting the default from opt-in to opt-out protection.

Why is this important

Many rental customers lack adequate liability insurance or are unaware they need it, creating significant financial risk if they cause an accident. This law simplifies the insurance landscape by making base liability coverage automatic, potentially reducing uninsured driver incidents and protecting both consumers and third parties in accidents involving rental vehicles.

Potential points of contention

  • Industry costs: Rental companies argue the mandatory coverage requirement increases operational expenses, which may be passed to consumers through higher rental rates
  • Insurance market complexity: Customers may still face confusion about coverage limits, deductibles, and how this interacts with their personal auto policies or credit card protections
  • Consumer choice limitations: Some argue the opt-out approach (rather than opt-in) reduces customer autonomy, despite consumer advocates viewing it as protective

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

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