Who Regulates Rhode Island Auto Insurance Rates?

Rhode Island state flag
Car coverage providers in Rhode Island set rates based on a number of details. For a resident to receive a quote, an insurer usually determines the individual's statistical likelihood of filing a claim in the future and sets prices accordingly. Those considered to be at a higher risk of experiencing a loss are likely to pay higher premiums, while those at a lower risk often pay less. Before these rates can be implemented, coverage providers must submit them to the RI Department of Business Regulation for approval.

Rates are regulated by the state to ensure that motorists are properly charged for Rhode Island auto insurance and to ensure that insurers are not being unfairly discriminatory. If there are any discrepancies, there may be a public hearing in which the attorney general's office represents the public. To ensure that policy providers in the Ocean State continue to do business in a fair and legal manner, this same department periodically audits them, during which claims-handling procedures are closely examined.

Rating Factors

Although state officials work to ensure that claims and rates are handled legally, the price that a resident pays for vehicle coverage is still largely dependent on individual insurers. As previously mentioned, premiums are based mostly on a motorist's likelihood of filing a claim, which is determined by examining details that include a driver's:
  • Age
  • Gender
  • Location
  • Marital status
  • Driving record
  • Desired coverage
  • Previous coverage history
  • Driving habits
  • Credit score
  • Vehicle year, make, and model

Comparing Rates from Multiple Insurers

The factors mentioned above are likely to be different for individual motorists, so residents are encouraged to make multiple Rhode Island car insurance comparisons to find an adequately priced plan. Instead of contacting insurers directly to receive estimates, which has the potential to be time-consuming, drivers may want to consider researching online. Evaluating possible premiums over the Internet can usually help make research more convenient by providing multiple quotes at once from the same website and with no obligations to make a purchase.

Rates for High-Risk Drivers

Because of the emphasis on driver risk, some individuals may encounter higher coverage costs based on statistical findings.
United States flag shaped as Rhode Island
For example, multiple studies have shown that motorists under the age of 25 have a greater chance of being involved in an accident than other age groups, mostly because they have shown to be more likely to speed, take unnecessary risks, and operate an automobile without a seat belt. Although there are many companies that offer cheap insurance for young drivers in Rhode Island, individuals with less experience behind the wheel may still need to complete a more extensive comparison to find an adequately priced plan.