Amends unfair claims practices law by requiring an insurance appraisal by a licensed appraiser where damage to a motor vehicle exceeds $5,000 (from $2,500) and eliminates language that prohibits an appraisal based on photos of a damaged motor vehicle.

Rhode Island Senate Bill Summary: Auto Insurance Damage Appraisals

This bill makes two changes to Rhode Island's rules about how insurance companies handle car damage claims. Currently, when a vehicle suffers more than $2,500 in damage, the insurance company is required to have a licensed appraiser evaluate the vehicle in person. This bill would raise that threshold to $5,000, meaning an in-person appraisal by a licensed professional would only be required for more significant damage claims above that amount.

The second change removes an existing rule that prevents insurance companies from basing their damage appraisals solely on photographs of a damaged vehicle. Under the current law, photo-only appraisals are specifically prohibited. If this bill passes, insurers would be allowed to assess vehicle damage using photos alone, without requiring a licensed appraiser to physically inspect the car.

These changes would primarily affect Rhode Island drivers who file auto insurance claims for vehicle damage. On one hand, allowing photo-based appraisals could make the claims process faster and more convenient for some customers. On the other hand, critics might be concerned that raising the appraisal threshold and allowing photo-only assessments could make it easier for insurers to underestimate damage, potentially leaving vehicle owners with less money to cover repair costs.

The bill has been referred to the Senate Judiciary Committee, which has recommended holding it for further study, meaning it has not yet advanced toward a vote.