Rhode Island's Statutory Motor Vehicle Right of Appraisal

Rhode Island R.I. Gen. Laws §27-10.4-1 (as amended in 2025) establishes a statutory motor vehicle Right of Appraisal. The statute applies when there is a disagreement concerning the amount of a motor vehicle loss. Each party selects a competent and disinterested appraiser — appraisers must not have a financial interest in the outcome.

Rhode Island's statute requires that appraisers participating in the statutory process hold a current Rhode Island motor-vehicle damage appraiser license. This licensing requirement applies to both the insured's appraiser and the insurer's appraiser.

Under the 2025 amendment, each appraiser has four business days from appointment to inspect the vehicle. The inspection period is a defined procedural step in the statutory process.

If the two appraisers cannot agree on the amount of the loss within the applicable period, they jointly select a competent and disinterested umpire. If they cannot agree on an umpire, either party may petition a court of competent jurisdiction to appoint one.

Once an umpire is selected, the umpire has five days to render a decision. The umpire reviews the appraisers' positions and, together with one of the appraisers, can establish the binding amount of loss.

Rhode Island's statute uses an agreement-of-two standard: a written agreement signed by any two of the three participants — the two appraisers or one appraiser and the umpire — sets the amount of the loss within the scope of the appraisal.

Rhode Island's statutory appraisal process produces a binding result within the scope of the appraisal, subject to the statute's stated provisions. The appraisal addresses the amount of the loss — it does not determine coverage questions, which remain outside the appraisal process.

Under §27-10.4-1, each party pays for its own appraiser. The umpire cost is ordinarily shared equally between the parties. However, if the final appraised value exceeds the insurer's original offer by more than 25%, the insurer is required to reimburse the insured's reasonable appraisal costs. This cost-reimbursement provision is specific to the circumstances described in the statute.

ACV in Rhode Island is the fair market value of the vehicle immediately before the loss. Rhode Island's statutory appraisal process provides a structured mechanism for resolving disputes about the amount of a loss, including total-loss ACV disputes.