SF4398

Purpose

This bill would change Minnesota law to modify how an automobile theft prevention surcharge is collected and how the money is used. It focuses on surveillance of auto theft prevention funding by adjusting the surcharge and dedicating the revenue to a state program.

Key provisions

• Surcharge amount and purpose:
  • Insurers writing automobile insurance must collect a surcharge of 50 to 60 cents per vehicle for every six months of comprehensive coverage.
  • The surcharge is not considered part of the policy premium for any purpose (e.g., premium tax or agent commissions).
  • The surcharge amount must be shown separately on billing statements or policy declarations to the insured.
• Use of funds:
  • The revenue from the surcharge must be sent to the commissioner of revenue.
  • The money will be used for the automobile theft prevention program described in section 65B.84.
• Scope and definitions:
  • The term “policy of automobile insurance” follows the definition in section 65B.14 and includes only certain vehicle types.
  • Eligible vehicle types:
  • Passenger automobiles
  • Pickup trucks
  • Vans (but not commuter vans, as defined in section 168.126)
  • Motorcycles
  • Exclusions: No vehicle with a gross vehicle weight over 10,000 pounds may be included.
• Coverage:
  • Applies to policies issued or renewed in Minnesota that provide comprehensive insurance.

How it changes existing law

• Establishes a dedicated, mandatory surcharge (50-60 cents per vehicle per six months) for comprehensive auto policies.
• Requires separate disclosure of the surcharge on bills and policy documents.
• Redirects the collected funds to the state’s automobile theft prevention program, instead of using them as general revenue or for other purposes.
• Narrows the eligible vehicle definitions to specific passenger, light-duty, and motorcycle categories, excluding heavier vehicles.

Expected impact

• Small increase in cost per eligible vehicle for six months of coverage, supported by dedicated funding for theft prevention efforts.
• Greater clarity and transparency for insured individuals due to separate disclosure.
• Clear funding stream for automobile theft prevention activities.

Notable terminology from the bill

• Surcharge
• Automobile theft prevention program
• Comprehensive insurance
• Premium tax
• Agents commissions
• Billing or policy declaration
• Commissioner of revenue
• Policy of automobile insurance
• Passenger automobile
• Pickup truck
• Van (not commuter van)
• Motorcycle
• Gross vehicle weight
• 10,000 pounds
• Minnesota Statutes 2024 section 297I.11 subdivision 1
• Minnesota Statutes 2025 Supplement section 297I.11 subdivision 2
• Section 65B.84
• Section 65B.14

Relevant Terms surcharge; automobile theft prevention program; comprehensive insurance; premium tax; agents commissions; billing statement; policy declaration; commissioner of revenue; policy of automobile insurance; passenger automobile; pickup truck; van; commuter van; motorcycle; gross vehicle weight; 10,000 pounds; Minnesota Statutes 2024 section 297I.11 subdivision 1; Minnesota Statutes 2025 Supplement section 297I.11 subdivision 2; section 65B.84; section 65B.14