§ 168A.1503 — Requirements Upon Unpaid Insurance Vehicle Claim
Plain-Language Summary
This 2025 law establishes procedures when an insurance claim on a salvage vehicle is not paid and the vehicle is left with a salvage auction company. If the insurer does not take ownership, it can direct the auction company to return the vehicle to the owner or lienholder. The auction company must notify the owner and lienholders twice before the vehicle can be deemed abandoned. After 30 days without recovery, the vehicle is deemed abandoned and the auction company can get a clean title free of all liens.
168A.1503 REQUIREMENTS UPON UNPAID INSURANCE VEHICLE CLAIM.
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Subdivision 1.Definition.
For purposes of this section, “salvage vehicle auction company” or “auction company” means a business, organization, or individual that sells salvage vehicles on behalf of insurers. §
Subd. 2.Notice to auction company.
(a) If an insurance company licensed to conduct business in Minnesota requests an auction company to take possession of a salvage vehicle that is subject to an insurance claim and the insurance company does not subsequently take ownership of the vehicle, the insurance company may direct the auction company to release the vehicle to the owner or lienholder.
(b) The insurance company must provide the auction company notice by commercial delivery service, email, or a proprietary electronic system accessible by both the insurance company and the auction company authorizing the auction company to release the vehicle to the vehicle’s owner or lienholder. §
Subd. 3.Notice to owner or lienholder.
(a) Upon receiving notice from an insurance company under subdivision 2, the auction company must send two notices a minimum of 14 days apart to the owner of the vehicle and any lienholders stating that the vehicle is available to be recovered from the auction company within 30 days of the date the first notice was sent. Each notice must include an invoice for any outstanding charges owed to the auction company that must be paid before the vehicle may be recovered.
(b) Notice under this subdivision must be sent to the address of the owner and any lienholder on record with the commissioner by certified mail or a commercially available delivery service that provides proof of delivery. §
Subd. 4.Vehicle deemed abandoned.
(a) If the owner or any lienholder does not recover the vehicle within 30 days of the date on which the first notice was sent under subdivision 3:
(1) the vehicle is considered abandoned;
(2) the vehicle’s certificate of title is deemed assigned to the auction company; and
(3) without surrendering the certificate of title, the auction company may request, on a form provided by the commissioner, that the commissioner issue a certificate of title that is free of liens.
(b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent by the insurance company required under subdivision 2, and (2) evidence of delivery of the notices sent to the owner and any lienholders required under subdivision 3 or evidence that the notices were undeliverable.
(c) Notwithstanding any outstanding liens against the vehicle, upon proper application and receipt of any fees charged under section 168A.29, the commissioner must issue a certificate of title that is free of liens to the auction company in possession of the vehicle.
History:
History: History:
1Sp2025 c 8 art 2 s 27