Rhode Island Governor Vetoes Bill on Suing Car Insurance Companies

July 12, 2019

Rhode Island Governor Gina Raimondo has vetoed a bill that would have allowed individuals to sue auto insurers for triple damages if their vehicle is totaled.

The Democratic governor says the bill, which is supported by the auto-body industry, would make the state the first in the nation where residents will have this legal right.

Raimondo says the state’s Department of Business Regulation already investigates and penalizes the insurance industry in case there is a pattern and practice that violates the law.

In her veto message, Raimondo says the legislation would cause “a significant volume” of litigation and drive up insurance premiums.

The Providence Journal reports the auto-body industry has given donations to Raimondo in the past, among other state political leaders.

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