Published: Jun 5, 2026
Rhode Island would become the only state in the country with an 85% total loss threshold if a bill that cleared the state Senate this week is signed into law.
Repairer Driven News reported Wednesday that the Rhode Island Senate passed SB 3115 by a 33-5 vote, a margin that signals strong legislative support even as insurance industry groups warn the change will push premiums higher in a state already ranked the most expensive in the nation for auto coverage. The bill now moves to the next stage of the legislative process before it can become law. According to Repairer Driven News, Rhode Island currently sits at an 80% threshold, itself a recent change, making this proposed jump to 85% a second increase in rapid succession.
Rhode Island Senate votes to raise total loss threshold to 85%
SB 3115 passed the Rhode Island Senate 33-5 on Wednesday, clearing the chamber with broad support after the Senate Judiciary Committee recommended it for passage.
The bill would prohibit insurers from declaring a vehicle a total loss unless the cost to rebuild or reconstruct it to pre-accident condition reaches 85% of its fair market value. Under the current law, that line sits at 80%.
Bill sponsor Sen. Hannal Gallo (D-District 27) made the consumer case plainly on the Senate floor.
"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."
That argument resonated with a clear majority of senators. Whether it will survive opposition from the insurance industry as it moves forward is a separate question.
How Rhode Island got here: from 75% to 80% to 85%
This is not Rhode Island's first move on total loss thresholds. It is actually the third position the state has considered in a short window.
During committee hearings last year, repair shops pushed for an 85% threshold. Insurance lobbyists countered with a request to keep the limit at 75%. Sen. Leonidas Raptakis (D-District 33) brokered a middle ground, landing the state at 80% in 2025.
Chris Stark, executive director of the Rhode Island Insurance Federation, described that outcome as a hard-fought compromise.
"The Raptakis compromise isn't even a year old, and we're already back here trying to undo it," Stark said.
Stark also raised a safety concern, questioning whether damage assessments at the 85% level reliably capture every underlying problem before a repaired vehicle returns to the road.
Now, less than 12 months after that compromise took effect, the Senate has voted to push the threshold higher again. The speed of the change is part of what has the insurance industry alarmed.
Where Rhode Island stands compared with every other state
The national context matters here. Jonathan Schreiber, state government relations representative for the American Property Casualty Insurance Association (APCIA), laid out the landscape for the committee.
| 75% | 1 in 17 states |
| 80% | 1 in 5 states |
| 85% | No state currently (Rhode Island would be first) |
Schreiber noted that Colorado and Texas do have thresholds higher than 80%, but Rhode Island's proposed 85% would still leave it as the lone state at that specific level.
"This bill would move Rhode Island even further into far outlier territory," Schreiber said.
That outlier status is not new for Rhode Island. Schreiber told the committee the state is already the most expensive in the nation for auto insurance costs, a condition he attributed partly to its existing regulatory environment. For context on what Rhode Island drivers pay for auto insurance relative to neighboring states, neighboring Massachusetts drivers and Connecticut drivers face their own distinct regulatory pressures, but neither state is navigating a threshold debate at this level.
Why insurers say the higher threshold will raise premiums
The insurance industry's opposition rests on one core claim: this bill has a measurable price tag, and drivers will pay it.
Schreiber told the committee that conservative projections show the bill would add between $740,000 and $1.5 million in costs to Rhode Island's auto insurance market. Those costs, he said, would be passed directly to consumers through higher premiums.
Stark reinforced the broader stakes.
He described the total loss threshold as one of the last remaining cost constraints the industry has within Rhode Island's insurance market. Remove it, he argued, and there are fewer levers left to hold rates down.
The Save Max Quote Index, drawn from 3.3 million+ real quote requests, consistently shows that state-level regulatory changes are among the fastest-acting variables in premium movement. When a state shifts a cost constraint like a total loss threshold, the SMQI reflects repricing activity in subsequent quote cycles, sometimes within a single policy renewal period.
Rhode Island already carries the distinction of being the most expensive state for auto insurance according to APCIA's Schreiber. Layering an additional $740,000 to $1.5 million in market costs onto that baseline is what has insurers describing this bill as a step in the wrong direction for affordability.
Why consumer advocates and sponsors say drivers need the choice
Sen. Gallo's argument is not complicated. Drivers who have maintained their vehicles carefully deserve a say in what happens to them after an accident.
When a vehicle is declared a total loss, the owner typically receives a settlement check and loses the car. For many consumers, especially those with older vehicles they have kept in good condition, a total loss designation can leave them unable to afford a replacement at current market prices.
Gallo pointed directly to the cost of replacement vehicles as the reason the threshold matters.
"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."
That framing shifts the question from "how much does a repair cost?" to "can this person afford what comes next?" The 33-5 Senate vote suggests that framing landed with most senators.
Repair shops originally requested the 85% threshold during last year's legislative debate, which means the industry most directly involved in executing repairs believes vehicles at that damage level can be safely and cost-effectively restored. That is a relevant data point for the safety concerns Stark raised.
What this means for you
If you drive in Rhode Island, this bill is not law yet. It cleared the Senate 33-5, but it must complete the remaining legislative steps before taking effect. Watch for movement in the coming weeks.
If it does pass, insurers will face higher costs when vehicles that previously would have been totaled must instead be offered for repair. Those costs are projected to flow back to policyholders. Review your current policy limits now, and compare rates before your next renewal to make sure you are not absorbing a premium increase passively. Drivers in neighboring states watching this debate should also check their own state's threshold rules, since New York auto insurance and New Jersey auto insurance regulations each take their own approach to total loss rules and premium calculation.
FAQ
What is the Rhode Island total loss threshold right now?
The current Rhode Island total loss threshold is 80%, a level set in 2025 after legislative compromise. Under that rule, an insurer cannot declare a vehicle a total loss unless the cost to rebuild it to pre-accident condition reaches 80% of the vehicle's fair market value.
What would change if SB 3115 becomes law?
The threshold would rise to 85%, meaning vehicles with repair costs between 80% and 85% of fair market value that are currently totaled could instead be offered for repair. Rhode Island would become the only state in the country with an 85% threshold.
Will this raise my car insurance premium in Rhode Island?
Industry representatives from APCIA project the bill would add $740,000 to $1.5 million in costs to the Rhode Island auto insurance market, with those costs expected to be passed on to consumers. Rhode Island is already identified as the most expensive state for auto insurance, so any additional cost pressure is a meaningful concern for drivers.
Why did repair shops support the 85% threshold last year?
According to testimony from Chris Stark of the Rhode Island Insurance Federation, repair shops requested the 85% threshold during last year's legislative debate. Their position implies confidence that vehicles at that damage level can be effectively restored, though insurers dispute whether all damage is reliably captured at that point.
What states have thresholds close to Rhode Island's proposed level?
According to APCIA's Jonathan Schreiber, 1 in 5 states currently operate at an 80% threshold, and 1 in 17 states use a 75% threshold. Schreiber noted that Colorado and Texas have thresholds higher than 80%, but Rhode Island's proposed 85% would be unique among all states.
About Taleah McGuire
Taleah McGuire is a Regional Analyst at SaveMaxAuto with 11+ years of insurance experience including senior roles at Kentucky Farm Bureau. She covers regulatory news, state-specific reform legislation, and traditional carrier coverage. Read more from Taleah McGuire →
Edited by Brooke Grissom.
Methodology
This article is grounded in the source linked above. SaveMaxAuto data points referenced here are drawn from the Save Max Quote Index (SMQI), a proprietary instrument reflecting 3,364,317 real consumer quote requests submitted to savemaxauto.com. State and carrier rankings reflect the lifetime dataset; year-over-year shifts reflect a rolling 12-month window. The index is refreshed monthly. External authority figures referenced (NAIC, NHTSA, state regulators) reflect the most recent public data releases available at time of writing.
Sources
- Primary source: Repairer Driven News, "Rhode Island Senate approves 85% total loss threshold bill"