New legislation introduced in both chambers of the Minnesota Legislature seeks to expedite vehicle repair timelines and curb alleged unfair practices by insurance companies, offering stronger protections for both policyholders and collision repair facilities.
Senate File 2209, sponsored by Sen. Nathan Wesenberg (R–Little Falls), and House File 1322, introduced by Rep. John Huot (DFL–Rosemount), propose several reforms designed to streamline the insurance claims process and enhance accountability for insurers. The bills aim to reduce repair delays and establish more transparent communication between insurers and repair shops.
Key provisions include requirements for quicker insurer response times on repair supplements, prohibitions against reducing settlement offers for safety- or operation-related repairs, and mandates for detailed documentation throughout the claims process. The legislation would also prevent insurers from repeatedly requesting the same information -- a practice that repairers say often slows down negotiations unnecessarily.
“These changes will help ensure a more efficient repair process and fairer treatment for consumers and shops alike,” said the Alliance of Automotive Service Providers of Minnesota (AASPMN), which is backing both bills, in a news release.
One of the most significant aspects of the proposed legislation is the establishment of a private right of action in auto insurance claims. This would enable repairers to pursue legal action in cases of egregious violations, allowing for the recovery of attorney fees, witness fees, disbursements and other litigation costs. Currently, most complaints must be filed with the Department of Commerce, a route that AASPMN argues has not been effective in curbing bad behavior from certain insurers.
“This provision offers a meaningful enforcement mechanism for repairers facing repeated unfair claims practices,” AASPMN said.
AASPMN expressed appreciation for the legislative sponsors and supporters of the initiative and said it will continue working to advance the bills through the legislative process in the coming weeks.
