The Rhode Island Department of Insurance has issued a reminder to insurers about the state’s restrictions on using certain aspects of a vehicle’s history when determining private passenger auto insurance premiums.

The notice came in a bulletin issued by the Rhode Island Department of Business Regulation’s Division of Insurance, according to a report by AM Best.

According to the regulator, insurance premiums cannot be adjusted on the basis of losses that are not accountable accidents or traffic violations.

State law defines an accident as nonliability for several reasons, including if the accident occurred more than three years ago, if the insured is 50% or less responsible, or if the vehicle was parked legally and unattended at the time of the accident.

The Department has noted that some insurers look at accidents outside the three-year period and use criteria outside the enforceable accident guidelines.

In addition, insurers are prohibited from offering “loss-free discounts,” or levels that take into account non-compensable accidents or traffic violations. State law also prohibits charging higher premiums for any loss where no surcharge is allowed. For example, surcharges cannot be applied to accidents where the claim amount is less than $3,000.

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The Department has directed insurers that use these rating factors to stop the practice immediately. Noncompliant rating filings must be reviewed and resubmitted to the Insurance Department by November 30.

In June, Rhode Island lawmakers passed legislation that would prohibit insurers from denying policyholders’ requests to use original equipment manufacturer parts during repairs if the vehicle is 72 months old or newer.

According to AM Best, the top five private passenger auto insurance writers in Rhode Island in 2023, based on direct premiums written, are Progressive Insurance Group (31.64%), Berkshire Hathaway Insurance Group (13.4%), Allstate Insurance Group (10.74%), Amica Mutual Group (9.49%), and USAA Group (6.54%).

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