§ 27-7-6. Rental vehicle coverage.
(a) For liability assumed under a written contract, coverage shall be provided under the property damage liability section of an insured’s private passenger automobile insurance policy. Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds (10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days.
(b) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive type losses.
(c) Whenever liability is accepted by an insurance company involving an accident that results in their insured’s causing a total loss of the other party’s vehicle, the at-fault carrier shall extend coverage for a rental vehicle for not less than an additional seven (7) days after the aggrieved party receives the total loss property damage check.
(d) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that a claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained damage, regardless of fault, requires repair, and will be out of service for the period of time determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of use payments shall be made up until the time the vehicle owner receives the property damage payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided regardless of fleet utilization.
History of Section.
P.L. 2004, ch. 54, § 1; P.L. 2004, ch. 59, § 1; P.L. 2021, ch. 260, § 1, effective
July 14, 2021; P.L. 2021, ch. 265, § 1, effective July 14, 2021; P.L. 2023, ch. 369,
§ 1, effective June 27, 2023; P.L. 2023, ch. 370, § 1, effective June 27, 2023.