In Rhode Island, all motorists are required by law to maintain a certain amount of auto insurance on their vehicles. Under Rhode Island General Laws section 31-31-7, motorists must obtain liability insurance of $25,000 per person and $50,000 per accident. In addition, motorists must obtain $25,000 worth of insurance per accident for property damage. Liability and property damage insurance protects the policyholder in the event that they cause a Rhode Island car accident by covering the costs incurred by victims of the accident. However, it is estimated that 17% of Rhode Island drivers do not maintain sufficient insurance on their vehicles.
If someone is involved in an accident that was caused by another motorist’s negligence, the at-fault motorist will be responsible for any injuries suffered by the accident victims. However, if the at-fault motorist does not have insurance, the accident victim will only be able to pursue a claim against the driver, who may not have the assets to compensate the injury victim adequately. This is where uninsured/underinsured motorist (UIM) protection comes into play.
Underinsured/Uninsured Motorist Protection in Rhode Island
Under a UIM policy, a policyholder is protected from accidents caused by an at-fault motorist who either has no insurance or does not have sufficient insurance to fully compensate the policyholder for the damages caused by the accident.