A bill that could direct more damaged vehicles toward repair shops rather than the salvage yard passed the Rhode Island Senate last week and now moves to the House.
The Rhode Island Senate approved Senate Bill 3115 on June 3 by a 33-5 vote, according to legislative records. The bill would amend the state’s Unfair Claims Settlement Practices Act to raise the point at which an insurer may declare a vehicle a total loss from 80% to 85% of its pre-accident fair market value.
Under the bill, an insurer could not declare a vehicle a total loss unless repair costs exceed 85% of the vehicle’s fair market value immediately before the accident, per the bill text. Consumers would retain the right to request a total loss settlement on their own at any threshold between 75% and 85%, with written authorization. The bill defines fair market value as the retail value set forth in a current edition of a nationally recognized automotive valuation compilation…