Bills Introduced in Rhode Island could Impact Repairers Directly

A number of bills introduced in Rhode Island's state legislature would directly impact independent auto repairers.

S. 877/ H. 5572 would define “fair market value” to include a valuation that's

• publicly available or accessible via electronic or print by consumer
  • commonly used by the automotive industry and car-buying public
  • VIN-specific, and
  • reflects a vehicle’s unique and widely available characteristics, including, but not limited to trim and options, prior damage, prior service and prior ownership event information.
• Currently, it's an unfair claims practice in RI for an insurer to designate a vehicle a total loss if the cost to repair it to pre-accident condition is less than 75% of its fair market value immediately prior to the damage.

H. 5571 would raise the threshold above which an appraisal is required from $2,500 to $5,000 and allow the appraiser to use photos to conduct the appraisal. Current law requires that appraisals take place in person. The bill would also allow appraisals to take place within 4 business days of a repairer's requested appraisal. Currently, that appraisal must take place within 3 business days.

H. 6053/ S. 902 would make it an unfair claims practice for an insurer to force a policyholder to accept a total loss settlement if the cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is less than 85% of the fair market value of the motor vehicle immediately preceding the time it was damaged. Currently, that threshold is 75%. It would also require an insurer to compensate an autobody repairer for procedures recommended by the OEM or collision repair industry programs such as AllData, RepairLogic, or CCC Repair Methods.