Auto Insurance Laws and Trends in R.I.

Rhode Island, the smallest state in the country, actually has one of the highest auto insurance premiums. They are rated as the 7th highest, averaging approximately $1,038 per year, compared to the national average of $817.

One of the reasons for such high auto insurance premiums is because of the high number of collisions and claim rates. Because of this, Rhode Island has made it mandatory for all motorists to carry minimum liability rates. Liability insurance covers any damages or injuries sustained in a motor vehicle accident by the other driver(s) involved. If you are involved in an accident and deemed to be at fault, you are responsible for paying these expenses. This is because Rhode Island uses the tort system of insurance.

Fraud and auto insurance in Rhode Island

I nsurance fraud is a huge problem in Rhode Island. Insurance fraud can be committed by a policy holder, other drivers, or individuals and groups who don't even hold an insurance policy with a particular insurance company.

For example, there are several fraudulent letters circulating from an "insurance company" stating that the policy holder has won a substantial amount of money. In order to claim this windfall, the policy holder is required to send in a smaller amount of cash. This money is then collected and the policy holder doesn't se a dime of his or her prize.

By adhering to the following tips, individuals can avoid being victims of these schemes:

• If an offer seems too good to be true – then it probably is.
• If the offer is from a well known company, contact them to verify that the contest or prize is actually valid.
• Check if the individual or company in the letter actually does business with the insurance company.
• Beware of letters or offers that state you have won a large amount of money, but in order to claim it you have to provide personal information and/or a smaller cash payment.

Request a free quote for Rhode Island auto insurance today!