Car insurance is mandatory in Rhode Island, under state laws every driver must possess current car insurance. As of 1993, the law stipulates a person’s license will be suspended if they are caught driving without car insurance. If you want to drive in the state of Rhode Island then you need to have at least the minimum amount of car insurance for your vehicle.
Minimum Car Insurance
You will be directed to sign a statement testifying that you will keep your car or other motorized vehicle insured the whole time it is registered with the Department of Motor Vehicles (DMV).
It’s required that you carry proof of auto insurance in your car while you are driving it. If for any reason you are asked by a police officer to produce your proof of insurance and you’re unable to present the documents, then a few things could happen:
1) You could receive a verbal warning.
2) Receive a citation requiring you to appear in court.
3) Your vehicle could be impounded until you show proof of insurance.
4) Or possibly be arrested and held
If you’re at fault in an auto accident, you’re accountable for compensating the medical costs of the other driver and any other damages such as, vehicle repair, and personal property. In Rhode Island you must have two types of insurance, Bodily Injury Protection and Property Damage Insurance.
Bodily Injury Protection
If anyone is killed or injured in an accident where you’re at fault, this insurance coverage will protect you. The policy will pay for damages up to the insurance coverage limit. Also you will receive representation for any legal actions occurring from the accident from your insurance company. The minimum of $25,000 per person and $50,000 per accident is required by the state.
Property Damage Insurance
Drivers are required to have a minimum of $25,000 coverage for property damage insurance. This coverage can cover the cost of repairing things like; a fence, a home, mailbox or another driver’s vehicle. This type of insurance also covers the expenses of defending you against any legal action up to the limit amount of the policy.
Rhode Island Car Insurance Companies
The most well known car insurance companies in the State are Geico, Progressive, State farm, Allstate, Liberty Mutual, and 21st Century Insurance to name just a few. There are just too many car insurance companies at one’s disposal in Rhode Island and each company has different rates.
In the United States there are approximately 1,500 car insurance companies, in reality there are really about 600-700 various car insurance company groups in the US, because many small companies are actually part of much larger insurance groups.
Rhode Island Car Insurance Rates Rates
Rhode Island Department of Business Regulation regulates the auto insurance rates in the state. The average Rhode Island car insurance premium is about $2,200 in 2010; the US average is about $1,500. Many people don’t understand how insurance companies offer rates according to coverage limits, so they just accept whatever is offered to them.