Rhode Island Bills Raising Total Loss Threshold to 85% Become Law Without Governor’s Signature

Companion measures amending the state’s Unfair Claims Settlement Practices Act took effect June 26, the second consecutive year Rhode Island has lifted its total-loss ceiling.

Rhode Island has raised the threshold at which an insurer may declare a damaged vehicle a total loss to 85% of its pre-accident fair market value, up from the 80% ceiling set in state law less than a year ago. Two companion bills amending the state’s Unfair Claims Settlement Practices Act became law June 26 without Gov. Dan McKee’s signature.

For collision repair facilities, the 5-percentage-point increase directs additional work to shops by allowing more