Rhode Island is the smallest state in the United States, yet it has a population of over a million people living there. This large number of people, in such a small area, is one reason why this state’s annual insurance premiums are higher than the nation’s average. Rhode Island, like all other states, has set a minimum requirement on automobile insurance that all drivers must have.

This state is like many of the other states in that it holds the person, at fault for an accident, liable for any bodily injuries or property damage that is caused from the accident. The state requires all drivers to carry an insurance policy that has a minimum amount that will be paid out for these damages. The minimum amount for bodily injury liability is $25,000 per person or $50,000 per accident. The state also requires drivers to have a minimum of $25,000 in property damage liability insurance. Many states only require $10,000 for property damage liability insurance, however Rhode Island and a few others require a higher amount.

Rhode Island does not require no fault insurance to be obtained by it’s residents. It also does not require comprehensive or collision insurance. However these types of clauses can be added to the insurance policy if the individual wishes to have it. They can also obtain uninsured motorist and underinsured motorist liability insurance as well. These are good types of coverage to have even if you are not required to have them. These clauses will increase your premiums, however they will also decrease the monetary liability you may find yourself owing in the event of a major automobile accident.

In addition to the number of people who live in the state, Rhode Island has other factors that determines the higher insurance premiums. One factor is the severe winter weather the state often experiences. Severe weather increases the likeliness of accidents to occur. Tourists in the summer months also adds to the increased possibilities of traffic accidents. These factors combined with over one million residents has caused the average monthly premiums to be around fifty dollars, per month, higher than the national average.