Cheap Auto Insurance in Rhode Island

Auto Insurance Requirements in Rhode Island

Affordable auto insurance in Rhode Island begins with purchasing a minimum liability policy for your car. Why? Because Rhode Island law requires drivers to purchase auto insurance as a requirement for registering and operating their cars on public roadways. Unfortunately, Rhode Island it doesn’t offer any other options as some states do. Without an acceptable insurance policy from a state authorized insurance company, a car must be kept off the road.

Though Rhode Island doesn’t require uninsured/underinsured motorist (UM) or personal injury protection (PIP) insurance, their minimum amounts of liability are a bit higher than in some other states. Those minimum amounts are as follows:

• bodily injury or death to one person-$25,000 per accident
• bodily injury or death to multiple persons — $50,000 per accident
• property damage to third parties — $25,000 per accident

Keep in mind that Rhode Island is a fault-based state. In other words, insurance companies pay out after accidents based on who’s at fault. In a fault-based state you can generally sue other drivers for medical bills, pain and suffering, lost wages, and so on. So it might be advisable for you to consider purchasing an umbrella policy in addition to your minimum liability in order to protect your personal assets.

Additional Coverage

If you take out a loan to purchase your car you will also need collision and comprehensive coverage added to your policy. That requirement will probably be included in the language of the loan contract provided by your bank. If you’re not sure you can always ask your loan officer for an explanation. You may also want to consider extra coverages like full glass, fire and theft, and so on, if your needs dictate.

One thing you should not do is simply purchase the cheapest car insurance you can find without assessing your needs. It doesn’t do you any good to have the lowest possible monthly premium if an accident ends up costing millions of dollars in damages. Talk over your financial situation with an insurance company representative and/or a financial advisor before deciding on an appropriate policy. If you can get away with cheap car insurance covering liability only, that’s great.

Carry Proof of Insurance with You

Whenever you drive your vehicle you are required by Rhode Island regulations to carry proof of insurance with you. For most people, that simply means throwing a copy of an insurance ID card or declaration page in the glove compartment. If you’re ever pulled over or involved in an accident you’ll need to show that document to the police or face a $500 fine. If you can produce proof of insurance within 10 days you can avoid the fine. If not, and it turns out you’re actually driving without insurance, you’ll pay the fine in addition to having your license suspended for up to 90 days.

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