Bill > H5104

This bill amends Rhode Island's insurance law to permit motor vehicle liability insurance carriers to consider the zip code of where a vehicle is garaged when calculating policy premiums, with a specific requirement that the zip code calculation must be segmented by municipality. The new provision, which will take effect for policies issued or renewed on or after July 1, 2026, allows insurers to use geographic location as a factor in premium pricing, but mandates that the calculation be more granular by breaking down zip codes at the municipal level. This means insurers can't simply use broad zip code data, but must analyze premium calculations within specific municipal boundaries. The bill builds upon existing insurance rating regulations that already prohibit certain discriminatory practices, such as penalizing older drivers or those with minor accidents, and adds this new provision about geographic-based premium calculations. The change provides insurers with more flexibility in risk assessment while attempting to ensure a more precise and potentially fairer method of geographic premium calculation.

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