Rhode Island Automobile Insurance Plan - RI AIP

Rhode Island Automobile Insurance Plan - RI AIP

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Drivers in Rhode Island are required to carry at least the minimum auto insurance coverage in order to be on the road legally. However, if your driving record includes things like traffic accidents or motor vehicle violations, it may be difficult to find an auto insurer willing to cover you. These records make insurers think you are high risk, with an increased chance of filing claims, and insurers want to avoid losses.

If you are refused auto insurance coverage, the Rhode Island Automobile Insurance Plan (RI AIP) may be your best bet. If you meet the eligibility criteria described below, you should be able to find auto insurance coverage in at least the minimum amounts of 25/50/25 for liability.

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What is the Rhode Island Automobile Insurance Plan (RI AIP)?

The Rhode Island Automobile Insurance Plan has been around since 1968. It was created to provide an insurance option to drivers who can't find coverage in the voluntary market. This happens because insurers in Rhode Island are allowed to choose which drivers they prefer to cover.

RI AIP is called an assigned risk plan. It's also known as a residual market. It exists to ensure that all RI drivers have access to at least the state minimum car insurance.

Rhode Island requires all licensed auto insurers to cover a share of high-risk drivers in order to do ANY auto insurance business in the state. The Rhode Island AIP calculates each insurer's market share in the state and assigns an equivalent share of high-risk drivers to them.

So while the Rhode Island Division of Insurance considers the RI AIP to be the last resort, it is there for you if you need it. Remember that you will be assigned an insurer, rather than choosing one yourself.

Rhode Island AIP eligibility

To obtain coverage through the RI AIP, you have to attest on your insurance application that you have tried to find auto insurance in Rhode Island within the last 60 days without success. Then, you also need a car registered in Rhode Island and a valid driver's license. Be sure to fill out the application fully and accurately, because your insurer may verify your information.

Your application for insurance coverage through the Rhode Island AIP may be held up if:

  • You have an unpaid auto insurance premium bill with any insurer within the last 12 months
  • You've opted for physical damage coverage but have not presented your car for inspection
  • Your application omits or misrepresents important information about you or your driving record

The good news is, your application can proceed immediately once you pay the outstanding premium or have your car inspected by a designated insurance representative. The bad news is, if your application is deemed to have been made in bad faith, the Rhode Island AIP can refuse to insure you and make you wait 12 months before you can reapply to the plan.

Rhode Island AIP coverage

Auto insurance coverage that you receive through the Rhode Island AIP is designed to be the same as the car insurance other drivers in the state receive. However, your RI auto insurance premium may be higher. Once you are assigned an insurer, that coverage will last three years.

AIP policies also have maximum available limits that are lower than what you'd find at a mainstream insurer. While the minimum levels will cost you less, you should consider purchasing more than the minimum in order to have the auto insurance protection that is appropriate for your needs.

Mandatory coverage

Rhode Island required minimum
Rhode Island AIP maximum

Bodily injury (BI)

$25,000 per person / $50,000 per accident$250,000 per person / $500,000 per accident

Property damage (PD)

$25,000 per accident$100,000 per accident

Your assigned insurer must, by law, offer you additional coverages, but you may reject them in writing if you choose. Medical payments will be offered, but you can refuse. Uninsured motorist bodily injury can be rejected entirely, or you can select a coverage level lower than what you selected for bodily injury liability. Uninsured motorist property damage is only offered at $25,000 per accident and comes with a $200 deductible, but again, you can reject it. Finally, comprehensive and collision coverages are offered, each with a choice of deductible: $100, $200, $500 or $1,000.

Optional coverage

Rhode Island AIP minimum
Rhode Island AIP maximum

Medical payments coverage

$2,500 per person / accident$2,500 per person / accident

Physical damage (collision and comprehensive)

Actual cash value of your car, up to a max of $75,000No higher limit

Uninsured motorist bodily injury

$25,000 per person/$50,000 per accident$250,000 per person /$500,000 per accident

Uninsured motorist property damage (UMPD)

$25,000 per accident$25,000 per accident

Note that Rhode Island AIP offers coverage for cars, pickup trucks, vans, motorcycles, motor homes and even antique autos older than 25 years.

Rhode Island AIP premiums and payment plans

An auto insurance policy obtained through the plan tends to cost more than the average Rhode Island policy. But there is no magic formula for knowing just how much more. Rhode Island’s auto insurers use different sets of criteria to evaluate you as a risk and price your policy. It pays to know the factors auto insurance companies are likely to consider, so you can take actions over time to reduce your insurance premiums.

In the event that your driving record improves and you succeed in finding auto insurance in Rhode Island’s voluntary auto insurance market, you can notify your assigned insurer and receive a prorated refund of your auto insurance premium.

How do I get insurance through the Rhode Island Automobile Insurance Plan?

Any licensed auto insurer in Rhode Island can explain the RI AIP to you, help you apply for coverage or get an auto insurance quote, if that’s appropriate for you. Drivers can also call Rhode Island’s Division of Insurance Regulation for Consumers at 401-462-9520.

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