The Motor Vehicle Insurance Modernization Amendment Act of 2025 aims to update the District of Columbia's automobile insurance requirements, which have not been revised since 1986. The bill proposes to increase the mandatory minimum insurance coverage from $25,000/$50,000 to $50,000/$100,000 to better align with the rising costs of medical care and damages resulting from motor vehicle accidents. Additionally, the legislation mandates that insurers provide enhanced underinsured motorist (EUIM) coverage, which ensures that insured individuals receive full benefits without reductions based on the at-fault driver's insurance. The bill also eliminates the option for policyholders to waive EUIM or underinsured motorist (UIM) coverage entirely.

Furthermore, the bill includes provisions for automatic increases in minimum coverage amounts by $5,000 every five years starting January 1, 2028, ensuring that the insurance requirements continue to keep pace with inflation and rising costs. Specific amendments to existing legal language include the replacement of the phrase "uninsured motorist protection" with "enhanced underinsured motorist protection or underinsured motorist protection," and adjustments to the coverage amounts for property damage liability and third-party liability. These changes reflect a comprehensive effort to modernize the District's motor vehicle insurance framework and provide better protection for victims of motor vehicle accidents.