Rhode Island Auto Insurance

 In Rhode Island, the tort system is used when settling losses caused by auto accidents. Under this system, you do not buy insurance that protects you directly. Rather, you buy “liability” insurance that protects other drivers to whom you become legally responsible for injury or other damage caused by an accident in which you are involved, should the accident be your fault. This means, when buying auto liability insurance, you transfer your risk of liability for injury or damage under
tort liability laws to the insurance company. Put another way, the company steps into your shoes and pays for damage in an auto accident for which you are legally responsible.

As of 1993, the laws of the State of Rhode Island required every driver and owner to be financially responsible in case of an auto accident – the purchase of Rhode Island car insurance liability coverage being the only practical way to comply. Penalties will be levied on owners and drivers without the coverage.

In Rhode Island, you must carry minimum limits of bodily injury liability - $25,000 per person and $50,000 per accident. This means you have coverage up to $25,000 for damages incurred by any one person and up to $50,000 in any one accident should more than one person be involved.
You many elect to purchase higher limits, based on your wish to protect your assets from lawsuits above these minimum amounts. Keep in mind that as you raise your coverage, your premiums increase because you are asking the insurance company to assume responsibility for higher amount, should a claim occur.

Property Damage liability coverage pays for damage to property for which you are legally responsible for in the case of an at-fault accident. Property of others usually involves damage to another car, but it also could be a telephone pole, lawns, fence, or even a building. This coverage pays not only when you are driving but when others are driving with your permission. The minimum limit required in Rhode Island for property damage is $25,000 per accident. Again, a higher limit is available for additional premium.

Uninsured Motorists coverage protects you. It pays if you are injured by a hit-and-run driver or a driver who does not have auto insurance. This coverage, in effect, takes the place of what the other driver should have purchased but did not. Coverage is also provided for under-insured drivers – those who have insurance, but not enough to cover your claim. This coverage, too, has policy limits. It covers bodily injury and property damage (property damage is subject to a deductible of $200). After payment to you for damages, your insurance company may sue the other driver for the money paid to you because of the other driver’s negligence.
In Rhode Island, you may decline to purchase uninsured/underinsured motorist coverage if you choose to buy only minimum limits of bodily injury and property damage liability as required by law.

Bodily Injury, Property Damage Liability, and Uninsured/Underinsured Motorist Coverage are the basic coverages contained in liability policies and are mandatory under the laws of Rhode Island (with the exception as mentioned for UM). Other coverages, including those covering the automobile itself, are available at your option.