Back to District of Columbia

B26-0057 • 2025

Motor Vehicle Insurance Modernization Act of 2025

Motor Vehicle Insurance Modernization Act of 2025

Healthcare
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Mendelson
Last action
2026-07-03
Official status
Under Congressional Review
Effective date
Not listed

Plain English Breakdown

The official text refers to an 'applicability date' for policies issued on or after that date but does not explicitly state a specific calendar day as the effective start in this excerpt, though it references the Act passed June 2, 2026.

Motor Vehicle Insurance Modernization Amendment Act of 2026

This law raises the minimum amounts for car insurance coverage in Washington, D.C., and requires insurers to offer a new type of underinsured motorist protection.

What This Bill Does

  • Increases the mandatory property damage liability limit from $10,000 to $20,000 per accident.
  • Raises bodily injury limits to $50,000 for one person and $100,000 total in any single accident.
  • Makes underinsured motorist coverage mandatory instead of optional for private passenger vehicles.
  • Requires insurers to offer enhanced underinsured motorist protection that does not reduce benefits by the amount paid by other insurance policies.
  • Sets a schedule to increase these minimum limits again starting January 1, 2037, and every ten years after.

Who It Names or Affects

  • Insurance companies selling private passenger vehicle coverage in Washington, D.C.
  • Drivers who own or register vehicles primarily garaged in the District of Columbia.
  • People injured by drivers with underinsured motor vehicles.

Terms To Know

Underinsured Motorist Coverage
Protection for you if an at-fault driver has insurance, but not enough to pay all your medical bills or damages.
Enhanced Underinsured Motorist Protection
A new type of coverage that pays the full amount owed without subtracting what the other driver's insurance already paid.
Property Damage Liability
The part of an insurance policy that pays for damage to another person's car or property if you cause an accident.

Limits and Unknowns

  • Drivers can choose not to have the enhanced coverage, but they must sign a written form saying so.
  • Insurers may exclude family members living in the same household from benefits if they are hit by an underinsured car owned by someone in their own home.

Bill History

  1. 2026-07-03 Council of the District of Columbia LIMS

    Act A26-0358 Published in DC Register Vol 73 and Page 009230

  2. 2026-07-02 Council of the District of Columbia LIMS

    Enacted without Mayor's Signature with Act Number A26-0358

  3. 2026-07-02 Council of the District of Columbia LIMS

    Transmitted to Congress, Projected Law Date is Sep 04, 2026

  4. 2026-06-29 Council of the District of Columbia LIMS

    Returned from Mayor

  5. 2026-06-16 Council of the District of Columbia LIMS

    Transmitted to Mayor, Response Due on Jul 01, 2026

  6. 2026-06-02 Council of the District of Columbia LIMS

    Legislative Meeting

  7. 2026-05-05 Council of the District of Columbia LIMS

    Committee Mark-up of B26-0057 by the Committee of the Whole

  8. 2026-05-05 Council of the District of Columbia LIMS

    Committee of the Whole Meeting

  9. 2026-05-05 Council of the District of Columbia LIMS

    Legislative Meeting

  10. 2026-01-09 Council of the District of Columbia LIMS

    Re-Referral published.

  11. 2026-01-06 Council of the District of Columbia LIMS

    Re-Referred to Committee of the Whole with comments from the Committee on Transportation and the Environment

  12. 2025-01-24 Council of the District of Columbia LIMS

    Notice of Intent to Act on B26-0057 Published in the District of Columbia Register

  13. 2025-01-21 Council of the District of Columbia LIMS

    Referred to Committee on Business and Economic Development with comments from the Committee on Transportation and the Environment

  14. 2025-01-13 Council of the District of Columbia LIMS

    B26-0057 Introduced by Chairman Mendelson at Office of the Secretary

Official Summary Text

Motor Vehicle Insurance Modernization Act of 2025

Current Bill Text

Read the full stored bill text
ENROLLED ORIGINAL
AN ACT
D.C. ACT 26-358
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
SULY 2, 2026
To amend theCompulsory/No-FaultMotor VehicleInsuranceAct of 1982 toincreasethe
mandatoryminimum privatepassengermotorvehicleinsurancerequirementsfor
propertydamageliabilityandthird-partyliabilitycoverage,torequireinsurerstoprovide
enhancedunderinsuredprivatepassengermotorvehiclecoverageunderapassenger
vehicleliabilityinsurancepolicy,andtoincreasethemandatoryminimumprivatepassengermotorvehicleinsurancerequirementsforpropertydamageliability,third-partyliability,underinsuredmotor vehicleand enhanced underinsuredmotor vehiclecoverage
byassetincrementbeginningonJanuary1,2037,andonJanuaryIstofevery10years
afterJanuary1,2037.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COUMBIA, That this
actmay be citedas the“Motor VehicleInsuranceModernizationAmendment Act of 2026”.
Sec.2. The Compulsory/No-FaultMotor VehicleInsuranceAct of 1982,effective
September 18,1982 (D.C. Law 4-155;D.C, OfficialCode § 31-2401 efseq.),isamended as
follows:
(a)Section7(D.C.Code§31-2406)isamendedasfollows:
(1)Subsection(a)(1)(D)isamendedbystrikingthephrase“and(iii)uninsured
motoristprotection.Inaddition,each insurershallofferoptionalpersonalinjuryprotection
insurancerequiredby section5 and underinsuredmotor vehiclecoverageasrequiredby this
section”andinsertingthephrase“(iii)enhancedprivatepassengerunderinsuredmotorist
protectionor underinsuredprivatepassengermotoristprotection;and (iv)uninsuredprivate
passengermotoristprotection.Inaddition,eachinsurershallofferoptionalpersonalinjury
protectioninsurancerequiredby section5” initsplace.
(2)Subsection(b)isamendedbystrikingthephrase“$10,000forproperty
damageinany1accident”andinsertingthephrase“$20,000forpropertydamageinanyone
accident”initsplace.
(3)Subsection(c)isamendedbystrikingthephrase“be$25,000perperson
injuredinany 1 accidentand $50,000forallpersonsinjuredinany | accident”and insertingthe

ENROLLED ORIGINAL
phrase“be$50,000perpersoninjuredinanyoneaccidentand$100,000forallpersonsinjuredinanyoneaccident”initsplace.(4)Subsection (c-1)isamended as follows:
(A)Strikethephrase“,exceptfortheoperationofmotorcyclesandmotor-
drivencycles,optionalunderinsuredmotor”andinsertthephrase“underinsuredmotor”initsplace. (B)Strikethephrase“.Theinsurershallnotberequiredtoobtainormaintainwrittenrejectionsoftheunderinsuredmotorvehiclecoverage.”andinsertaperiodinitsplace.
(©)Strikethephrase“Insurancethatincludesunderinsuredmotorvehiclecoveragemayincludetermsandconditionsthatprecludestackingofunderinsuredmotorvehiclecoverage.”andinsertthephrase“Insurancethatincludesonlyunderinsuredmotorvehiclecoverage,andnotenhancedunderinsuredmotorvehiclecoverage,mayincludetermsandconditionsthatprecludestackingofunderinsuredmotorvehiclecoverage.”initsplace.(5)Subsection(f)isamendedasfollows:
(A)Paragraph(2)isamendedbystrikingthephrase“amountsof$25,000perpersoninjuredinany1accident,or$50,000forallpersonsinjuredinany1accident,andcoverageforpropertydamageinanamountof$5,000forpropertydamageinany1accident”andinsertingthephrase“amountsof$50,000perpersoninjuredinanyoneaccident,or$100,000forallpersonsinjuredinanyoneaccident,andcoverageforpropertydamageinanamountof$20,000forpropertydamageinanyoneaccident”initsplace.(B)Paragraph(4)isamendedbystrikingthephrase“inany1accident”
bothtimesitappearsandinsertingthephrase“inanyoneaccident”initsplace.(6)A newsubsection(f-1)isaddedtoreadasfollows:
“(E-1)Enhancedunderinsuredmotoristprotection.“(1)Enhancedunderinsuredmotoristprotectionisfortheprotectionofaninsuredwhoislegallyentitledtorecoverdamagesfromtheowneroroperatorofanunderinsuredmotorvehicle.

“(2)(A)Thelimitofliabilityforaninsurerthatprovidesenhancedunderinsuredmotorvehiclecoverageistheamountofthatcoveragewithoutanyreductionfortheamountpaidtotheinsured,thatexhaustsanyapplicableliabilityinsurancepolicies,bonds,andsecuritiesonbehalfofanypersonthatmaybeheldliableforthebodilyinjuriesordeathoftheinsured.“(B)A policyprovidingexcesscoveragemayincludeenhancedunderinsuredmotorvehiclecoverage,inanamountequaltobutnotgreaterthantheexcess
coverageinthepolicy.A policythat,asitsprimarypurpose,providescoverageinexcessofothervalidandcollectibleinsuranceorqualifiedself-insurancemayincludetheenhanced
underinsuredmotorvehiclecoverage.“(C)Aninsuredmaynothaveenhancedunderinsuredmotoristprotectionandunderinsuredmotoristprotectioncoveragesimultaneously.
2

ENROLLED ORIGINAL
“(D) An insuredmay waive enhanced underinsuredmotoristprotection
coverageindividuallyorcollectively.
“(3)(A)Unlesswaived inaccordancewiththissubsection,each insurerselling
motorvehicleinsuranceintheDistrictwithrespecttoanymotorvehicleregisteredorprincipally
garagedintheDistrictshallincludecoverageforenhancedunderinsuredmotorvehicle
insurance.
“(B)Theamountofenhancedunderinsuredmotoristcoverageprovided
underaprivatepassengermotorvehicleliabilityinsurancepolicyshallnotexceedtheamountof
uninsuredmotoristcoverageprovidedunderthepolicy.
“(C)Suchpolicyshallcontaincoveragefordamages,subjecttothepolicy
limits,that:
“(iTheinsuredisentitledtorecoverfromtheowneroroperatorof
an underinsuredmotor vehiclebecauseof bodilyinjuriessustainedina motor vehicleaccident
arisingoutoftheownership,maintenance,oruseoftheunderinsuredmotorvehicle;and
“(ii)A survivoroftheinsuredisentitledtorecoverfromtheowner
or operatorofan underinsuredmotor vehiclebecausetheinsureddiedas theresultofa motor
vehicleaccidentarisingout of theownership,maintenance,or use of theunderinsuredmotor
vehicle.
“(D)Aninsurermayexcludefromtheenhancedunderinsuredmotorvehiclecoveragebenefits:
“(i)The named insuredor a familymember of the named insured
who residesinthenamed insureds householdforan injurythatoccurswhen thenamed insured
orfamilymemberisoccupyingorisstruckasapedestrianbyanunderinsuredmotorvehiclethat
isownedbythenamedinsuredoranimmediatefamilymemberofthenamedinsuredwho
residesinthenamed insured’shousehold;and
“Gi)The named insured,a familymember ofthe named insured
who residesinthenamed insured’shousehold,and any otherindividualwho has otherapplicable
motorvehicleinsuranceforaninjurythatoccurswhenthenamedinsured,familymember,or
otherindividualisoccupyingorisstuckasapedestrianbytheinsuredmotorvehiclewhilethe
motor vehicleisoperatedor used by an individualwho isexcludedfrom coverageunder District
law.
“(4)(A)Ifthefirstnamedinsureddoesnotwishtoobtaintheenhanced
underinsuredmotoristcoverageunder thissection,thefirstnamed insuredshallmake an
affirmativewrittenstatementwaivingthecoverage,asprovidedbythisparagraph.
“(B) A waivermade underthissubsectionshallnotbe effectiveunless
waiverismade aftertheinsurerprovidesthefirstnamed insuredwrittennoticeof thenature,
extent,benefit,and costof theleveloftheenhanced underinsuredmotoristcoveragebeing
waived.
“(C) A waiver made underthissubsectionshallbe made on a form thatthe
Commissioner requires.The form:

ENROLLED ORIGINAL
“()Maybepartoftheinsurancecontract;
“(ii)Shallclearlyexplainthatifthe firstnamed insuredchoosesto
waiveenhancedunderinsuredmotoristcoverage,thefirstnamed insuredshallhavetheoptionto
selecttraditionalunderinsuredmotoristcoverageor no underinsuredmotoristcoverage;and
(iii)Shallclearlyandconciselyexplaininatleast12-point
boldfacetype:
“()Thenature,extent,benefit,andcostofthelevelofthe
enhancedunderinsuredmotoristcoveragethatwould be providedunderthepolicyifnotwaived
bythefirstnamedinsured;
“(I1)Thatafailureofthefirstnamedinsuredtomakea
waiverrequirestheinsurertoprovideenhancedunderinsuredmotoristcoverage;
“(il)Thattheinsurermaynotrefusetounderwritea
personbecausethepersonrefusestowaivetheenhancedunderinsuredmotoristcoverageunder
thissubsection;and
“(LV)Thatawaivermade underthissubsectionmustbean
affirmativewrittenwaiver.
“(D)Electroniccommunicationsatisfyingtherequirementsofthis,
subsectionshallbe an acceptableformofwritten waiver.
“(5)Ifthefirstnamedinsureddoesnotmakeanaffirmativewrittenstatement
waivingtheenhancedunderinsuredmotoristcoverage,theinsurershallprovidethecoverage
underthissection.
“(6)Unlessthefirstnamedinsuredaffirmativelymakesachangeinwriting,the
electionnottowaiveenhancedunderinsuredmotoristcoverageappliestoallsubsequent
renewalsofcoverageandtoallotherpoliciesorendorsementsthatextend,change,supersede,or
replaceanexistingprivatepassengermotorvehicleinsurancepolicyissuedtothefirstnamed
insured.At thefirst,and each subsequent,insurancerenewalfollowingtheapplicabilitydateof
theMotor VehicleInsuranceModernizationAmendment Act of 2026,passedon 2nd readingon
June2,2026(EnrolledversionofBill26-57),aninsurershallincludeontheformrequired
pursuanttoparagraph(4)ofthissubsectio:
“(A)Applicablewaiveroptionsforaninsuredwhodoesnotchooseto
maintainenhanced underinsuredmotoristcoverage;and
“(B)Theoptiontoaddorreinstateenhancedunderinsuredmotoristor
traditionalunderinsuredmotoristcoverageforaninsuredwhohaspreviouslywaivedit.
“(7)A provisioninapassengermotorvehicleliabilityinsurancepolicyissuedon
oraftertheapplicabilitydateof theMotor VehicleInsuranceModernizationAmendment Act of
2026,passedon 2nd readingon June 2,2026 (Enrolledversionof Bill 26-57),aboutcoveragefor
damages sustainedby theinsuredas a resultofthe operationof an underinsuredmotor vehicle
thatrequiresa disputebetween theinsuredand theinsurertobe submittedtobindingarbitration
isprohibited.

ENROLLED ORIGINAL
“(8)Subsection(f)(5)and(6)ofthissectionshallapplytopersonswhoare
insurersand theinsuredunderthissubsection.”.
(7)New subsections(i),(j),and(k)areaddedtoreadasfollows:
“()(1)BeginningonJanuary1,2037,andonJanuary1stofevery10yearsafterJanuary
1,2037,theamounts providedinsubsections(c)and (f)ofthis sectionshal!increaseas follows:
“(A)Theamountperpersoninjuredinanyoneaccidentshallincreaseby
$5,000;
“(B)Theamountforallpersonsinjuredinanyoneaccidentshallincrease
by$10,000;and
“(C)Theamountofcoverageforpropertydamageinanyoneaccident
shallincreaseby $2,000.
“(2)Theamountsdescribedinsubparagraphs(A),(B),and(C)ofparagraph(1)
shallapplytocausesofactionarisingbetweenJanuaryIstontheyearoftheincreaseand
December 31stof theyearpriortothenextincrease.
“@)TheCommissionershallpublishnoticeofanyincreaseundersubsection(i)ofthis
sectionon theDepartment’swebsiteand intheDistrictof Columbia Registeratleast12 months
priorto theeffectivedateofany such increase.
“()Study.—
“(1)The Commissioner shallconducta studyon theimpacttoconsumers of the
provisionsof theMotor VehicleInsuranceModernizationAmendment Act of 2026, passedon
2nd readingon June 2,2026 (EnrolledversionofBill 26-57).
“(2)Thestudyshallinclude:
“(A) An analysisofthe impacton premiums of theincreaseoffinancial
responsibilitylimitsfrom $25,000,$50,000,and $10,000to $50,000,$100,000,and $20,000,
respectively,andfromtheofferingofenhancedunderinsuredmotoristcoverageasadefault
selectionforcoverage;
“(B)Totheextentinformationisavailable,ananalysisoftheimpactof
theincreaseinfinancialresponsibilitylimitsand theofferingofenhanced underinsuredmotorist
coverageasadefaultoptiononcompensationfordamagesresultingfrommotorvehicle
accidents,includingtheimpactonout-of-pocketcostsincurredbyinsuredsfordamages
exceedingpolicylimits;
“(C)Totheextentinformationisavailable,ananalysisoftheimpacton
theDistrict’suninsuredmotoristpopulationfromtheincreaseinfinancialresponsibilitylimits
from $25,000,$50,000,and $10,000 to$50,000,$100,000,and $20,000,respectively,and from
theofferingofenhancedunderinsuredmotoristcoverageasadefaultselectionforcoverage;and
“(D)Anyotherrelevantmatterrelatingtotheincreaseinminimum
financialresponsibilitylimitsandtheofferingofenhancedunderinsuredmotoristcoverageby
privatepassengermotorvehicleliabilityinsurers.

ENROLLED ORIGINAL
“(3\(A)OnorbeforeDecember31,2030,theCommissionershallsubmitaninterimreporttotheCouncilthatincludesinitialfindingsandrecommendationsfromthestudyrequiredunderthissubsection.“(B)OnorbeforeDecember31,2032,theCommissionershallsubmitafinalreporttotheCouncilthatincludesthefindingsandrecommendationsfromthestudyrequiredunderthissubsection.ThefinalreportshallincludearecommendationonCouncilactionwithrespecttosubsections(i)and(j)ofthissection.”.(b)Section12(D.C.OfficialCode§31-2411),isamendedbyaddinganewsubsection(e-1)toreadasfollows:
“(e-1)Priorityofcoverageforrentedmotorvehicles.—“(1)Foramotorvehiclerentedpursuanttoawrittenrentalagreement,any validandcollectiblemotorvehicleliabilityinsurance,self-insurance,orotherfinancialresponsibilitycoverageavailabletotherenterorauthorizeddrivershallbeprimaryforclaimsarisingoutoftheuse,operation,orpossessionoftherentedmotorvehicleduringtherentalperiod.
“(2)Anymotorvehicleliabilityinsurance,self-insurance,orotherfinancialresponsibilitycoveragemaintainedbytherentalcompanyoritsaffiliateshallbesecondaryorexcesstothecoveragedescribedinparagraph(1)ofthissubsection,unlesstherentalcompanyexpresslyagreesinwritingtoprovideprimarycoverage.
“(3)Nothinginthissubsectionrelievesarentalcompanyfrommaintaininginsurance,self-insurance,orproofoffinancialresponsibilityrequiredbyDistrictlaw.
“(4)Nothinginthissubsectionlimitsliabilityarisingfromtherentalcompany’sownnegligence,criminalwrongdoing,negligententrustment,failuretomaintainrequiredinsurance,orotherindependentactoromission.
“*(5)Thissubsectionshallbeconstruedconsistentlywith49U.S.C.§30106.”.

Sec.3.Applicability.ThisactshallapplyasofOctober1,2027.
Sec.4.Fiscalimpactstatement.
‘TheCounciladoptsthefiscalimpactstatementinthecommitteereportasthefiscal
impactstatementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,
approvedOctober 16,2006 (120 Stat.2038; D.C. OfficialCode § 1-301.47a).
Sec.5.Effectivedate.
ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobythe
Mayor,actionbytheCounciltooverridetheveto)anda30-dayperiodofCongressionalreview

ENROLLED ORIGINAL
asprovidedinsection602(c)(1)oftheDistrictofColumbiaHomeRuleAct,approvedDecember24,1973(87Stat.813;D.C.OfficialCode§1-206.02(c)(1))..
Ld DaweChairman
Councilofthe Districtof Columbia
UNSIGNED
MayorDistrictof ColumbiaJUNE 24, 2026

COUNCILOF THEDISTRICTOF COLUMBIA,
WASHINGTON,DC,20004

DocketNo.826-0057

[1;TEMONCONSENTCALENDAR
[XJACTION FirstReading
{X)VOTEDATE May5,2026 |
[x1VOICEVOTE, ‘Approved |
RECORDEDVOTEONREQUEST T.White
ABSENT
[JROLLCALLVOTEResult

‘CounciiMember[Aye[Nay[NV[AB[Rec[CouncMember[Aye|Nay|NV[AB|Rec|CouncilMember[aye|Nay|NVAB [Rec
ChairmanMendelson)X Frumin x Pinto x
Allen x Henderson x R.White
Bonds x LewisGeorge| X T.White x
Crawford x Nadeau x
Felder x Parker x
X-IndicateVote ‘AB—Absent NV--Present,NotVoting Rec-Recused
CERTIFICATIONRECORD
‘SecretarytotheCouncit
DocketNo.826.0057,
[]TEMONCONSENTCALENDAR:
[XTACTION FinalReading
[DXIVOTEDATE June2,2026
{X]VOICEVOTE Approved
RECORDEDVOTEONREQUEST 7.White
ABSENT
[}ROLLCALLVOTE~Result

[CounciliMember__[Aye[Nay|NV[AB[Rec[CouncilMember[Aye|Nay|NV[AB[Rac|CounciMember[Aye[Nay|NV[AB[Reo
ChairmanMendelson]x Frumin x Pinto x
‘Allen x Hendersonx R.White x
Bonds x LewisGeorge_| T.white x
Crawford x Nadeau x
Felder x Patker x
X=IndicateVoto ABAbsent NV-Present,NotVoting Rec-Recused CERTPICATIONRECORDSertr0 be2timo