Rhode Island has enacted House Bill 7507 and Senate Bill 2681. The bills state that if an insurer refuses to honor a direction to pay that is executed by an insured or claimant to have the insurer directly pay the insured's property damage benefit to the restoration company of the consumer's choice, provided that the claim is no more than $5,000 and the restoration company is licensed, it constitutes an unfair claims practice.

Rhode Island has enacted Senate Bill 3105, which, among other provisions, states that when requested by the insured or claimant, the insurer must directly pay repair benefits to a licensed auto body shop of the consumer's choice for the motor vehicle repairs. It also requires insurers to compensate for any documented procedures that are identified as required or recommended by the original equipment manufacturer or paint manufacturer upon the initial request from the auto body shop. Lastly, if any insurer fails to comply with certain requirements when settling claims on Rhode Island registered vehicles repaired in the state, regardless of where the insurance policy was issued or originates, it constitutes an unfair claims practice.

Rhode Island has adopted Regulation 230-RICR-20-50-3, which indicates that if an insurer does not promptly appraise a damaged motor vehicle, it will forfeit the right to inspect the vehicle prior to repairs. The regulation went into effect on May 20, 2024.

On May 1, 2024, the Rhode Island Department of Business Regulation (RIDBR) issued Insurance Bulletin 2024-5 providing a list of insurers and insurance groups that must participate in the 2024 Auto Body Labor Rate Survey.