Rhode Island’s insurance industry is facing significant changes thanks to new legislation aimed at improving consumer protections. From giving drivers more power in car repair disputes to providing clearer guidelines for pet insurance, these new laws promise to make a big impact on how consumers interact with insurers. In this article, we break down what these changes mean for Rhode Islanders who rely on auto and pet insurance.
New Rules for Auto Insurance
For anyone who’s struggled with an insurance adjuster after a car accident, the new laws are a welcome change. Two major bills aim to give consumers and auto body shops more power when negotiating repairs.
The first bill, S0901, introduces a new process for resolving disagreements over repair costs. If you and your insurer can’t agree on the price, the bill establishes a more structured arbitration system. A key consumer protection here is that if the final appraisal cost is 25% higher than the insurer’s initial offer, the insurance company must cover the cost of your appraisal.
Another important piece of legislation, H6053, updates the Unfair Claims Settlement Practices Act. This bill raises the threshold for declaring a car a “total loss” from 75% to 80% of its value, meaning fewer cars will be written off. The law also requires insurers to pay for repairs based on the manufacturer’s recommendations, ensuring that vehicles are properly fixed and remain safe on the road.
Pet Insurance Gets More Regulation
Rhode Island is also taking steps to regulate the pet insurance market, which has grown significantly in recent years. The new Pet Insurance Act (S0649), set to go into effect on January 1, 2026, provides much-needed clarity for pet owners.
The law defines important terms like “preexisting conditions” and mandates that insurers be upfront about exclusions and how payments are calculated. A major win for consumers, the law introduces a 15-day “free look” period, allowing you to cancel a new policy within 15 days for a full refund, no questions asked. The law also bans waiting periods for accident coverage and ensures that wellness programs are sold separately from insurance policies, so consumers aren’t confused by what’s covered.
What These Changes Mean for Consumers
These new laws represent a significant shift toward protecting consumers in the insurance world. With more transparency in pet insurance and better negotiation tools for auto repairs, Rhode Islanders can look forward to fairer treatment from insurance companies. As these laws begin to take effect, we’ll continue to monitor their impact and keep you informed.
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