District of ColumbiaB26-0057Council Period 26 (2025-2026)HouseWALLET

Motor Vehicle Insurance Modernization Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Became Law

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 0 costs, 4 mixed.

District drivers must carry higher coverage

Beginning October 1, 2027, District private passenger auto policies must meet higher minimum coverage limits. Liability injury limits double from $25,000 to $50,000 per person and from $50,000 to $100,000 per accident. Liability property-damage coverage doubles from $10,000 to $20,000 per accident. Uninsured-driver injury limits also rise to $50,000 per person and $100,000 per accident; property coverage rises from $5,000 to $20,000. Traditional underinsured-driver limits are $50,000 per person, $100,000 per accident, and $20,000 for property damage. Higher required coverage provides more crash protection but may increase premiums; the law sets no premium increase amount.

Drivers face scheduled insurance coverage increases

Beginning January 1, 2037, specified auto insurance minimums increase every 10 years. Each increase adds $5,000 per injured person, $10,000 for all injuries per accident, and $2,000 for property damage. Each new limit applies to legal claims arising that January 1 through December 31 before the next increase. Higher minimums increase crash protection but may raise insurance costs. The Insurance Commissioner must publish notice online and in the District Register at least 12 months before each increase. The Commissioner must study premiums, compensation above policy limits, and the uninsured and underinsured driver population. Reports are due December 31, 2030, and December 31, 2032; the final report must recommend action on scheduled increases and notices.

Drivers get enhanced coverage unless waived

Beginning October 1, 2027, insurers must include Enhanced Underinsured Motorist Protection for vehicles registered or mainly kept in the District. It covers injury claims against underinsured drivers, including survivors' claims after death, up to the full enhanced coverage limit. Other payments and recoveries do not reduce that limit, and excess policies can include this protection. Enhanced coverage cannot exceed the policy's uninsured-driver limit or apply alongside traditional underinsured coverage. The first named insured can instead choose traditional coverage or no underinsured coverage. Waiving enhanced coverage requires a written waiver on the Commissioner's form after written notice explaining its coverage, benefits, and cost. Electronic delivery is allowed, and the form may be part of the policy. The waiver carries across renewals and related policies until changed in writing. Annual renewal notices must offer adding or restoring enhanced coverage or switching to traditional coverage. Insurers cannot refuse coverage because someone declines to waive enhanced protection; keeping it may increase premiums.

Drivers gain protections for insurance claims

Insurers may exclude enhanced underinsured benefits only for injuries covered by the law's listed exclusions. These include listed injuries to a named insured or resident family member involving vehicles owned by them or immediate family. They also include listed injuries involving a driver excluded from coverage under District law. Policies issued on or after October 1, 2027, cannot require binding arbitration for underinsured-driver coverage disputes. The law also changes rules for combining coverage limits from multiple policies, including removing some motorcycle restrictions. Insurers can still limit that combining in policies consisting only of underinsured coverage.

Car renters' available liability coverage pays first

Beginning October 1, 2027, written car rental agreements follow a set order for liability claims during the rental period. Valid, collectible insurance, self-insurance, or other financial-responsibility coverage available to the renter or authorized driver pays first. The rental company's or affiliate's coverage is secondary unless the company agrees in writing to provide primary coverage. Rental companies must still maintain required insurance and remain responsible for their own negligence or other independent wrongdoing. The rule must be read consistently with federal rental-car liability law.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 50 • No: 2

House vote • 6/2/2026

Other

Yes: 13 • No: 0

House vote • 6/2/2026

Final Reading

Yes: 12 • No: 1

House vote • 5/5/2026

First Reading