Rhode Island Senate approves 85% total loss threshold bill

The Rhode Island Senate approved a bill Wednesday that would increase the total loss threshold to 85%. 

Currently, insurers can’t designate a vehicle a total loss in the state if the cost to rebuild or reconstruct it to its pre-accident condition is 80% of fair market value. The threshold was increased to 80% in 2025 after the passage of a previous bill. 

SB 3115 passed the Senate 33-5 after receiving the Senate Judiciary Committee’s recommendation for passage. 

Sen. Hannal Gallo (D-District 27), bill sponsor, said on the Senate floor that consumers who’ve maintained their vehicles for years should have the ability to choose if they want to keep it. 

“This act would allow a consumer to choose whether their motor vehicle should be designated a total loss when the cost to rebuild their motor vehicle is less than 85% of the fair market value,” she said. “With the retail cost of new and used cars being prohibitive for many consumers, it is vital that they have a choice of whether to repair their car.” 

Multiple insurance lobbyists registered that they were against the bill during a committee hearing last month. 

Chris Stark, Rhode Island Insurance Federation executive director, said repair shops asked for an 85% threshold in legislation last year, adding that insurance lobbyists asked for 75%. 

Sen. Leonidas Raptakis (D-District 33), a member of the committee, compromised at 80%, Stark said. 

“The Raptakis compromise isn’t even a year old, and we’re already back here trying to undo it,” Stark said. “This legislation has real consequences. It’s not consumer-friendly because when we get to this point of 85% loss to your vehicle from an accident, are we really catching everything? Are we really catching everything that’s wrong with that vehicle and comfortable enough to put it back out on the road safely?” 

Stark said that the total loss threshold is one of the last cost constraints the industry has within Rhode Island’s insurance market. 

Jonathan Schreiber, American Property Casualty Insurance Association state government relations, told the committee that Rhode Island is the most expensive state for auto insurance costs. He added this is because of an “outlier status” in regard to regulations. 

One in 17 states has a 75% threshold, Schreiber said. He said 1 in 5 states have an 80% threshold. 

Rhode Island would be the only state with an 85% threshold, he said. But added that Colorado and Texas have higher thresholds. 

“This bill would move Rhode Island even further into far outlier territory,” Schreiber said. 

He said conservative projections show the bill would cost another $740,000 to $1.5 million in costs to the auto insurance market. 

The extra cost will be passed on to consumers who pay more for car insurance, he said.

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Sen. Hannal Gallo (D-District 27) discusses SB 3115 on the Rhode Island Senate Floor on June 3, 2026. (Video screenshot)