H7866

Rhode Island H7866 raises the percentage for declaring a vehicle a total loss from 80% to 85% of its fair market value.

Rhode Island H7866 amends the Unfair Claims Settlement Practices Act to redefine when a vehicle can be declared a total loss. The bill raises the threshold from 80% to 85% of the vehicle's fair market value before it can be deemed a total loss. This change allows consumers to designate a vehicle a total loss when the cost to rebuild or reconstruct it is less than 85% of its fair market value, but more than 75%. The act also includes provisions for insurers to notify vehicle owners about obtaining salvage and reconstructed titles if the insurer is not retaining the salvage.