Raises the percentage from eighty percent (80%) to eighty-five percent (85%) regarding declaring a vehicle a total loss.

Rhode Island Bill Summary: Vehicle Total Loss Threshold

This bill would change the rules insurance companies use to decide when a damaged vehicle is considered a "total loss." Under current Rhode Island law, if the cost to repair a vehicle reaches 80% of the car's actual value, the insurance company can declare it a total loss — meaning they pay out the car's value rather than fixing it. This bill would raise that threshold to 85%, meaning a car would need to sustain more damage before an insurer could declare it totaled.

The change would primarily affect Rhode Island drivers who have been in accidents and are filing auto insurance claims. Under the new rule, more damaged vehicles would need to be repaired rather than declared total losses. For example, if your car is worth $10,000, an insurer currently can total it if repairs cost $8,000 or more. Under this bill, repairs would need to reach $8,500 before it could be totaled. This could mean more vehicles get fixed and returned to their owners instead of being written off.

The practical effects cut both ways for consumers. Some drivers may prefer getting their repaired car back rather than a cash payout that might not fully cover a replacement vehicle. Others may find themselves with a repaired car that has lingering problems. Insurance companies would also be affected, as they may pay more in repair costs on claims that fall between the 80% and 85% range. The bill is currently in the early stages of the legislative process and has been postponed at the sponsor's request.