The Motor Vehicle Insurance Modernization Amendment Act of 2026 aims to enhance the mandatory minimum insurance requirements for private passenger motor vehicles in the District of Columbia. Key changes include increasing the minimum property damage liability from $10,000 to $20,000, and the minimum third-party liability coverage from $25,000 per person and $50,000 per accident to $50,000 per person and $100,000 per accident. Additionally, the bill introduces enhanced underinsured motorist protection, which insurers must provide unless waived by the insured. This coverage is designed to protect individuals who are entitled to recover damages from the owner or operator of an underinsured vehicle.

The bill also establishes a schedule for future increases in insurance coverage amounts every ten years starting January 1, 2037, and mandates that the Commissioner conduct a study on the impact of these changes on consumers, including effects on premiums and compensation for damages. Furthermore, it clarifies the priority of coverage for rented vehicles, stating that the renter's insurance will be primary during the rental period, while the rental company's coverage will be secondary unless otherwise agreed in writing. The act is set to take effect on October 1, 2027, following the necessary approvals.