The Minnesota Legislature has passed a bill, SF 508, that will allow Minnesota consumers involved in an automobile accident to choose their rental vendor as a source of a temporary replacement vehicle.
The legislation has the following main sections:
- Prohibits insurers providing rental vehicle reimbursement coverage from requiring an insured to utilize a particular rental vehicle company.
- Requires insurers to advise the insured that "Minnesota law gives you the right to choose any rental vehicle company, and prohibits me from requiring you to choose a particular vendor."
"Insurance companies that handle temporary replacement rentals tend to steer customers towards national car rental companies with whom they have contracts, instead of locally based businesses," said Rep. Joe Atkins (DFL-Inver Grove Heights), who co-sponsored the bill with Roger Chamberlain (R-Lino Lakes).
"This is commonsense legislation; it's good for consumers and business. The legislation strikes a balance between business and consumer protection by offering consumers more choice while protecting businesses ability to enter into contracts with other auto rental companies," said Chamberlain.
The law was signed by Governor Mark Dayton on May 25 and is effective August 1, 2011.