PROVIDENCE, R.I. (WPRI) – Governor Lincoln Chafee has vetoed a bill that would have sent car insurance rates soaring in Rhode Island.
The legislation - which
Call 12 for Action first reported on June 6 - called for setting standards for declaring a vehicle a total loss if the cost to repair the vehicle is less than 75 percent of the value of the vehicle; require an insurer to negotiate payment for auto body repairs in good faith; and allow private rights of action by auto body shops against insurance companies.
Gov. Lincoln Chafee said in a news release, “No other state in the nation allows auto body shops to set repair prices outside of the marketplace, determine whether a vehicle should be totaled without the input of the consumer and the insurance company, or to be an outside third party now authorized to effect an existing insurance policy between a consumer and an insurance company.”