Rhode Island 2026 Regular Session

Rhode Island Senate Bill S2431

Introduced
2/6/26  

Caption

Permits on and after July 1, 2027, for an insurer to consider the zip code in which the vehicle is garaged provided that the calculation of the zip code is segmented by the municipality where the vehicle is garaged.

Impact

The bill amends Section 27-9-4 of the General Laws in the realm of casualty insurance rating, permitting insurers to use zip codes in their premium calculations, but crucially requiring that these calculations are broken down by municipality. This could lead to differences in premiums based on more localized risk factors, a move that supporters argue will lead to more equitable pricing. However, the implementation date for these changes is set for July 1, 2027, allowing insurers time to adapt their systems to these new regulations.

Summary

S2431 is a legislative act aimed at modifying the parameters under which insurance companies can calculate rates for personal motor vehicle insurance. Introduced by various senators, this bill specifically allows insurers to consider the zip code where a vehicle is garaged, which is intended to provide a segmented view of risk according to municipality. The bill seeks to modernize insurance practices by incorporating geographical considerations into insurance ratings, a tactic that could reflect more accurately the risk associated with operating a vehicle based on location.

Contention

There are notable points of contention surrounding S2431, particularly regarding how the use of zip codes might disproportionately affect lower-income neighborhoods, which could see higher premiums if they are statistically deemed higher risk. Moreover, the bill touches on age discrimination practices by ensuring that insurers cannot penalize drivers over 65 years based solely on age. This provision is meant to protect senior drivers, ensuring that they are rated on their driving record rather than their age, which has been a longstanding concern in the insurance industry.

Companion Bills

No companion bills found.

Previously Filed As

RI H5104

Forbids a motor vehicle liability insurance carrier from considering the zip code of where an insured lives for purposes of calculating their policy premium.

RI S0766

Forbids a motor vehicle liability insurance carrier from considering the zip code of where an insured lives for purposes of calculating their policy premium.

RI S0925

Requires at fault insurance companies to provide to any claimant whose vehicle is damaged in an accident, to provide a vehicle that is comparable to the claimant’s vehicle and that rental charges shall be based on local retail prices.

RI H6032

Requires at fault insurance companies to provide to any claimant whose vehicle is damaged in an accident, to provide a vehicle that is comparable to the claimant’s vehicle and that rental charges shall be based on local retail prices.

RI S0985

Restricts private vehicle property damage insurance coverage for a rental passenger vehicle, to the named insured and drivers listed on that private policy, unless the designated driver is specifically excluded.

RI H6079

Restricts private vehicle property damage insurance coverage for a rental passenger vehicle, to the named insured and drivers on that private policy, unless the designated driver is specifically excluded.

RI S0084

Prohibits casualty insurers from assessing any premium surcharge or penalty against an insured solely for inquiring about the terms of the insured's policy.

RI H5570

Prohibits casualty insurers from assessing any premium surcharge or penalty against an insured solely for inquiring about the terms of the insured's policy.

RI S1107

Provides that comprehensive permit projects in Tiverton, involving property not connected to either public water or sewer or both, and for which the property is considered hydric said land be excluded from the building land calculation.

RI H6177

Provides that comprehensive permit projects in Tiverton, involving property not connected to either public water or sewer or both, and for which the property is considered hydric said land be excluded from the building land calculation.

Similar Bills

No similar bills found.