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 bill mandates that insurance providers offer both underinsured motorist (UIM) and enhanced underinsured motorist (EUIM) coverage, eliminating the option for policyholders to waive either coverage entirely.

Key amendments include increasing the minimum coverage for property damage liability and third-party liability, as well as establishing a schedule for future increases of $5,000 every five years starting January 1, 2028. The bill also introduces new provisions regarding the requirements for insurers to provide enhanced underinsured motorist coverage, including the necessity for policyholders to make an affirmative written waiver if they choose not to obtain this coverage. Overall, the legislation seeks to ensure that victims of motor vehicle accidents receive adequate compensation while modernizing the insurance framework in the District.