Rhode Island Car Insurance Basics

Rhode Island auto insurance is necessary to protect drivers against the expenses that are often involved after a motor vehicle accident. This coverage is not optional, but considered state law for residents. Drivers who drive without the proper coverage leave themselves susceptible to potentially serious financial consequences and penalties. Automobile insurance is one of the most important aspects of car ownership.

Auto Insurance Coverage Offered in Rhode Island

Bodily Injury Liability - This type of coverage is an essential part of Rhode Island car insurance. This guarantees that the insurance company will cover and defend any losses and damages caused by the insured during a motor vehicle accident. This is very important when an insured is at-fault. Should the insured or any other party involved in the accident suffer injuries, any settlement offerings will be hinged on this coverage.

Property Damage Liability - This is the component that covers the insured against any damage they may cause to another person's property as a result of a motor vehicle accident when they are deemed to be at fault. Property damage coverage includes vehicle replacement and repair, stationary objects repair or replacement (ie. fences or telephone poles), and structural damage to homes or other buildings. Without this coverage option, an insured would be required to pay for these costs out of pocket.

Uninsured or Underinsured Motorist Bodily Injury – This coverage option covers the insured should they be involved in a motor vehicle accident with a party who doesn't have insurance at all or does not have enough coverage to pay for the damages. This also covers the insured should they be involved in a hit and run, and it provides both medical and property payment components.

Medical Payments – Medical payment coverage protects the insured as well as any family members or other passengers who are in the car at the time of the accident. This option covers a range of scenarios including an accident with an uninsured or under-insured vehicle or a family member who has been hit by a car while walking.

Collision – This auto insurance component pays for damages to the insured's vehicle resulting from not only motor vehicle accidents but objects as well. When selecting this coverage option, the most important factor to consider is the deductible. The higher the deductible, the lower the monthly premium cost. However, the higher the deductible is, the more the insured will be required to pay out of their own pocket should they need to use this coverage option. Drivers should consider the value of their vehicle in their decision-making about collision insurance.

Comprehensive – Comprehensive protects the insured against damages that are the result of vandalism, falling objects, natural disasters, or theft. The same terms apply to the deductible with this coverage option as collision coverage, and this should be weighed against the specific needs of the insured. Deductible amounts can range from $0 to well over $1,000 per incident. Obtaining Rhode Island car insurance quotes will help drivers put these values in better perspective.

Rhode Island Auto Insurance Laws

Rhode Island state law requires that all drivers who operate a motor vehicle must have insurance coverage. This is not only a requirement, but essential coverage for any driver who wishes to protect their vehicle. Though the state has set a minimum amount coverage, it may be necessary to purchase more coverage depending on the specific needs of the insured. Rhode Island cheap car insurance may not always be the best option for every driver.

Rhode Island is a fault state that allows individuals involved in motor vehicle accidents the right to file a claim against their insurance company, file a claim against the at-fault driver's insurance company, or to file a lawsuit. Unlike no-fault states, residents are not required to exhaust their own policy limits before pursuing other methods of settlement.

Rhode Island Coverage Scale

* Bodily Injury Liability - $25,000/$50,000 (per person/per incident)

* Property Damage Liability - $25,000

* UninsuredUnderinsured Motorist Bodily Injury - Required

Collision, medical payments, and comprehensive coverage are all considered optional for Rhode Island drivers.

Before purchasing car insurance drivers should first get several Rhode Island auto insurance quotes. Here are a few of the insurance companies licensed to sell insurance within the state:

* Allstate Insurance Company

* Progressive Insurance Company

* Geico Auto Insurance Company

* Nationwide Insurance Company

* Liberty Mutual Insurance Company

* Travelers Insurance Company

In order for drivers to get the best deal on Rhode Island cheap auto insurance, it's important to obtain several quotes to make sure they are receiving the lowest premiums for the right coverage.

Rhode Island Automobile Insurance Rates

Rhode Island residents pay an average of $2,352 each year in car insurance premiums. This amount is higher than the $1,824 national average. Most often, drivers think that driving history or credit scores determine the cost of automobile insurance. However, there are several other factors that play a part in determining these figures. In order to get the best rate on car insurance, it's important to understand what information car insurance companies use to compute premiums. Here are some of the factors that insurance companies use to establish Rhode Island car insurance ratings:

Seat belt use – According to statistics, 78% of all Rhode Island residents wear seat belts while operating motor vehicles. This figure is much lower than the national average of 85%. These statics are used to establish Rhode Island auto insurance ratings, which help to determine insurance premiums.

Roads and road conditions – Rhode Island is known for treacherous winters. The extreme climate in the area wrecks havoc on area roads resulting in increased motor vehicle accidents. During the winter months, it is not uncommon for many of the minor and major roads to be covered with snow making them difficult to pass and increasing the number of accidents.

Vehicle theft – Vehicle theft in the state is around 227 incidents per 100,000 residents. This is down from 445 incidents per 100,00 residents nearly 10 years ago. The most commonly stolen car in the state is the 1995 Nissan Maxima.

For more information concerning the insurance laws and regulations for the state of Rhode Island, visit the Department of Insurance here. (http://www.dbr.state.ri.us/divisions/insurance/)