Adds property damage to statutory underinsured motor coverage, rather than just uninsured motorist coverage, as it is presently.

Plain-English Summary

This bill would expand the protections available to Rhode Island drivers under underinsured motorist coverage — the type of insurance that kicks in when the driver who caused an accident doesn't have enough insurance to cover your losses. Right now, Rhode Island law requires this protection only for bodily injury (meaning injuries to people). This bill would add property damage to that requirement, meaning your underinsured motorist coverage would also have to cover damage to your car or other property when the at-fault driver's insurance falls short.

Currently, if another driver causes an accident and their insurance isn't enough to pay for your vehicle repairs, you may be left covering that gap out of pocket — unless you have optional coverage like collision insurance. This bill would require that underinsured motorist policies include property damage protection, giving drivers a more reliable safety net in those situations. This would bring underinsured motorist coverage more in line with uninsured motorist coverage, which already includes property damage protection under existing Rhode Island law.

This bill primarily affects Rhode Island drivers and the insurance companies that serve them. Drivers could benefit from stronger financial protection after accidents, while insurers may need to adjust their policies and potentially their pricing to reflect the expanded coverage requirement. The bill has been introduced in the Senate and referred to the Senate Judiciary Committee, where it has been held for further study.