Rhode Island Insurance Adjuster Exam

In Rhode Island, who has primary insurance coverage when a person with a RI policy rents a vehicle?

1. The rental company's insurance

2. The renter's insurance

3. Both insurances are primary

4. No coverage is provided

The correct answer is: The renter's insurance

In Rhode Island, when a person with an insurance policy rents a vehicle, the primary insurance coverage typically comes from the renter's personal insurance policy. This means that the insurance that the individual has on their own vehicle will extend to cover the rental car, according to the terms and conditions of their policy. It is common for personal auto insurance policies to provide coverage for rented vehicles, so individuals can feel secure knowing that the same protections that apply to their owned vehicle also apply to the rented one, barring any specific exclusions or limitations. While the rental company's insurance may provide some level of coverage, it usually acts as secondary coverage. This means that if a rental vehicle is damaged or involved in an accident, the renter's personal insurance will pay first, and any repairs or liability costs that exceed the personal policy's limits may then be covered by the rental company's insurance. Understanding this hierarchy of insurance coverage is crucial for individuals who frequently rent vehicles, as it influences both their financial responsibilities and their decision-making regarding additional rental insurance options.