District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0057

Introduced
1/13/25  

Caption

Motor Vehicle Insurance Modernization Act of 2025

Impact

The impact of this legislation is expected to improve consumer protections for victims of motor vehicle accidents by ensuring that they can more fully recover their medical expenses and damages. Furthermore, insurers will be mandated to provide enhanced underinsured motorist coverage, which ensures that victims are compensated fully, without deductions based on other available insurance from the at-fault party. This amendment is a response to neighboring jurisdictions, which have already increased their coverage requirements, thereby aiming to keep pace with surrounding states and address the needs of residents who may suffer financial strain in the event of an accident.

Summary

B26-0057, titled the Motor Vehicle Insurance Modernization Amendment Act of 2025, seeks to significantly update the District of Columbia's motor vehicle insurance requirements, which have remained static for nearly four decades. The bill proposes to raise the minimum insurance coverage from $25,000/$50,000 to $50,000/$100,000, reflecting the increased costs associated with medical expenses and damages resulting from motor vehicle accidents. As the bill outlines, the current minimums no longer adequately protect consumers or cover the financial ramifications of today's vehicular accidents, where medical and recovery costs have risen dramatically since the last update in 1986.

Contention

Notably, the introduction of this bill has prompted discussions around potential implications for insurance premiums. Proponents argue that previous claims of increased premiums following similar legislative changes in other jurisdictions have been shown to be unfounded. However, opponents worry about the financial burden placed on drivers if insurance companies pass on the costs of increased coverage requirements. There is also debate regarding the mandated nature of enhanced underinsured motorist coverage, as some propose that leaving this choice to consumers may be preferable. Overall, these discussions highlight differing viewpoints on how best to balance consumer protection with individual choice in auto insurance policies.

Companion Bills

No companion bills found.

Previously Filed As

DC B25-0810

Motor Vehicle Insurance Modernization Amendment Act of 2024

DC B25-0435

Fraudulent Vehicle Tag Enforcement Amendment Act of 2023 (now known as "Fraudulent Vehicle Tag and Parking Enforcement Modernization Amendment Act of 2024")

DC B25-0476

Peer-to-Peer Car Sharing Act of 2023

DC PR25-0121

Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing Amendment Emergency Declaration Resolution of 2023

DC B25-0416

Department of For-Hire Vehicles Delivery Vehicle Traffic Enforcement Expansion Amendment Act of 2023 (now known as "Carrier-for-Hire Oversight and Enforcement Act of 2024")

DC B25-0148

Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing Temporary Amendment Act of 2023

DC B25-0147

Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing Emergency Amendment Act of 2023

DC B25-0150

Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing Amendment Act of 2023

DC B25-0745

Youth Work Permit Modernization Act of 2024

DC B25-0784

Fiscal Year 2025 Budget Support Act of 2024

Similar Bills

UT HB0231

Motor Vehicle Insurance Modifications

DC B25-0810

Motor Vehicle Insurance Modernization Amendment Act of 2024

UT HB0245

Uninsured Motorist Amendments

UT HB0402

Uninsured Motorist Amendments

NJ A5445

Prohibits automobile insurance policies from disclaiming uninsured or underinsured motorist coverage based on use of motor vehicle owned by insured's employer.

NJ S4156

Prohibits automobile insurance policies from disclaiming uninsured or underinsured motorist coverage based on use of motor vehicle owned by insured's employer.

NJ S2293

Requires automobile insurance policies to provide uninsured and underinsured motorist coverage equal to policy liability limits of insured motorists.

NJ S4133

Requires automobile insurance policies to provide uninsured and underinsured motorist coverage equal to policy liability limits of insured motorists.