Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 140-S.F.No. 973 
                  An act relating to insurance; automobile; permitting 
                  users of rental vehicles to benefit from lower price 
                  rental periods without losing coverage; amending 
                  Minnesota Statutes 1994, section 65B.49, subdivision 
                  5a. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 65B.49, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [RENTAL VEHICLES.] (a) Every plan of reparation 
        security insuring a natural person as named insured, covering 
        private passenger vehicles as defined under section 65B.001, 
        subdivision 3, and pickup trucks and vans as defined under 
        section 168.011 must provide that all of the obligation for 
        damage and loss of use to a rented private passenger vehicle, 
        including pickup trucks and vans as defined under section 
        168.011, and rented trucks with a registered gross vehicle 
        weight of 26,000 pounds or less would be covered by the property 
        damage liability portion of the plan.  This subdivision does not 
        apply to plans of reparation security covering only motor 
        vehicles registered under section 168.10, subdivision 1a, 1b, 
        1c, or 1d, or recreational equipment as defined under section 
        168.011.  The obligation of the plan must not be contingent on 
        fault or negligence.  In all cases where the plan's property 
        damage liability coverage is less than $35,000, the coverage 
        available under the subdivision must be $35,000.  Other than as 
        described in this paragraph, nothing in this section amends or 
        alters the provisions of the plan of reparation security as to 
        primacy of the coverages in this section. 
           (b) A vehicle is rented for purposes of this subdivision if 
        the rate for the use of the vehicle is determined on a monthly, 
        weekly, or daily basis.  A vehicle is not rented for purposes of 
        this subdivision if the rate for the vehicle's use is determined 
        on a monthly or longer period longer than one month. 
           (c) The policy or certificate issued by the plan must 
        inform the insured of the application of the plan to private 
        passenger rental vehicles, including pickup trucks and vans as 
        defined under section 168.011, and that the insured may not need 
        to purchase additional coverage from the rental company. 
           (d) Where an insured has two or more vehicles covered by a 
        plan or plans of reparation security containing the rented motor 
        vehicle coverage required under paragraph (a), the insured may 
        select the plan the insured wishes to collect from and that plan 
        is entitled to a pro rata contribution from the other plan or 
        plans based upon the property damage limits of liability.  If 
        the person renting the motor vehicle is also covered by the 
        person's employer's insurance policy or the employer's 
        automobile self-insurance plan, the reparation obligor under the 
        employer's policy or self-insurance plan has primary 
        responsibility to pay claims arising from use of the rented 
        vehicle. 
           (e) A notice advising the insured of rental vehicle 
        coverage must be given by the reparation obligor to each current 
        insured with the first renewal notice after January 1, 1989.  
        The notice must be approved by the commissioner of commerce.  
        The commissioner may specify the form of the notice.  
           (f) When a motor vehicle is rented or leased in this state 
        on a monthly, weekly, or daily basis, there must be attached to 
        the rental contract a separate form containing a written notice 
        in at least 10-point bold type, if printed, or in capital 
        letters, if typewritten, which states: 
           Under Minnesota law, a personal automobile insurance policy 
           issued in Minnesota must cover the rental of this motor 
           vehicle against damage to the vehicle and against loss of 
           use of the vehicle.  Therefore, purchase of any collision 
           damage waiver or similar insurance affected in this rental 
           contract is not necessary if your policy was issued in 
           Minnesota. 
        No collision damage waiver or other insurance offered as part of 
        or in conjunction with a rental of a motor vehicle may be sold 
        unless the person renting the vehicle provides a written 
        acknowledgment that the above consumer protection notice has 
        been read and understood. 
           (g) When damage to a rented vehicle is covered by a plan of 
        reparation security as provided under paragraph (a), the rental 
        contract must state that payment by the reparation obligor 
        within the time limits of section 72A.201 is acceptable, and 
        prior payment by the renter is not required. 
           (h) To be compensated for the loss of use of a damaged 
        rented motor vehicle, the car rental company must prove: 
           (1) that had the vehicle been available, it would have been 
        rented; and 
           (2) that no other vehicle was available for rental in place 
        of the damaged vehicle. 
           The standard of proof set forth in this paragraph does not 
        limit the responsibility of a reparation obligor to provide an 
        insured with coverage for any loss of use for which the 
        reparation obligor is otherwise responsible.  A car rental 
        company may be compensated for loss of use of a damaged rental 
        motor vehicle only for the period when the damaged car actually 
        would have been rented. 
           Sec. 2.  [EFFECTIVE DATE AND APPLICATION.] 
           Section 1 is effective August 1, 1995, and applies to 
        rentals entered into on or after that date. 
           Presented to the governor May 5, 1995 
           Signed by the governor May 8, 1995, 3:54 p.m.