The smallest of all US states the State of Rhode Island and Providence Plantations, its official name, is the longest of any state. With just over a million inhabitants, Rhode Island is not the smallest state by population, but because of its small geographic nature it is the 3rd densest state in the union. Unfortunately, it is also in the top 10 states for uninsured drivers at 8th and is also eighth most expensive for car insurance as well.
No Fault System
A standard no fault or traditional tort auto insurance system is followed in the state and drivers are required to have insurance if driving in the state. The state even requires Uninsured Insurance coverage to be offered on every policy in the state and drivers can only opt out if they do so in writing to decline the coverage. If you are wondering why premiums are higher in the “Ocean State” all you need to do is look at the cost of auto repair in the state. For some reason it has grown by more than 15% more than neighboring states and is driving up claim costs, which in turn drive up premiums.
As congestion can also add to accident rates which also increase premiums the area around Boston, including Rhode Island is the 6th most congested in the nation. The next time you wonder why premiums are higher in Rhode Island than all neighboring states, these are just the largest indicators.
The state does require all drivers to carry liability insurance coverage in 25/50/25 setup. This means, $25,000, $50,000, and $25,000 for injury of one person, injury of multiple persons and property damage respectively. In this fault system you have multiple options for setting accidents depending on their severity including private negotiation, third party claims, and civil lawsuits to recover expenses.
Have you ever considered getting full coverage insurance? Well although there is technically no such thing as 100% coverage, you can get a number of auto insurances that add a ton of extra coverage. The two most popular include collision and comprehensive which protect your property damage in an accident and from theft, vandalism and extreme weather in the latter coverage. However you can also opt for medical payments insurance, Gap coverage, rental car reimbursement, and towing and labor coverages as well. By getting these coverages you can often avoid financial ruin from an accident.
The Rhode Island Automobile Insurance Plan ensures that all drivers including high risk drivers have access to insurance. If you have been declined by an insurer for a regular policy you can opt to be covered under the RIAIP plan. Although this should be your last resort, as it is much more expensive than normal coverages.
Proof of Insurance
The State of Rhode Island requires you to show proof of insurance for routine traffic stops, at all accidents and during registration and licensing in the state. Your insurance card or a photocopy of a current and valid policy is all the proof you will be required to show. The state also conducts random verification requests, which must be satisfied within 20 days or face similar penalties of not having insurance. A monetary fine and license revocation of 3 months to 1 year are assessed based on your number of offenses.