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Providence, R.I. - The Governor’s Insurance Council called on Gov. Dan McKee today to veto legislation that would increase costs for Rhode Island consumers, negatively impacting one of the Governor’s signature priorities. The two bills, H.7866 and S.3115, would raise costs for drivers by increasing Rhode Island’s total-loss threshold for automobiles from 80 percent to 85 percent.
“Governor McKee has consistently emphasized affordability as one of his central goals for Rhode Island families,” said Travis McDermott, Chairman of the Governor’s Insurance Council and an attorney at Partridge Snow & Hahn. “While inflation is soaring, these bills risk moving the state in the wrong direction by increasing vehicle repair costs, driving insurance claim expenses higher, and placing additional pressure on auto insurance premiums.”
“Rhode Islanders are struggling with the cost of living, and this legislation would make one of the most expensive aspects of household budgets even worse,” said McDermott. “We respectfully urge the Governor to veto these bills and protect consumers from unnecessary cost increases.”
The legislation would potentially require insurers to repair more heavily damaged vehicles rather than declaring them a total loss, increasing the amount spent on repairs by nearly a million dollars annually in Rhode Island, according to conservative estimates. These increases would be ultimately reflected in insurance rates paid by consumers.
Rhode Island already ranks among the most expensive states in the nation for automobile insurance and repair costs, due in large part to unusually high repair expenses. Increasing the total-loss threshold would further increase those costs while pushing the state closer to being one of the most expensive states in the nation for auto repair and insurance.
Jennifer Morrison, General Counsel of Amica and Secretary of the Governor’s Insurance Council, also warned that the legislation may create unintended hardships for drivers following an accident.
“Vehicles with substantial damage could be repaired rather than replaced, often requiring longer and more complex repair processes,” Morrison added. “As a result, consumers wait longer, pay more, and find themselves driving vehicles that may be less safe and at higher risk of malfunctioning in a future accident.”
The Council further notes that the bills undo a compromise reached only one year ago. In 2025, legislation was introduced to increase Rhode Island’s total-loss threshold from 75 percent to 85 percent. Following extensive discussions among stakeholders, Governor McKee signed the compromise legislation that established an 80 percent total loss threshold.
“Last year, all parties came to the table in good faith and accepted a compromise,” said Morrison. “The Legislature and the Governor agreed that 80 percent was the appropriate balance. Reopening that issue only a year later sends the wrong message about the predictability of Rhode Island’s business climate.”
The Council urged Governor McKee to honor his commitment to affordability and consumer protection by rejecting H.7866 and S.3115 and vetoing the bills.
“Rhode Islanders need lower costs, not higher ones,” said McDermott. “We respectfully ask Governor McKee to veto these bills and stand with consumers, working families and drivers across Rhode Island.”
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