Key Takeaways
- DC requires minimum liability coverage of 25/50/10 for all registered vehicles
- Uninsured motorist (UM) coverage is mandatory at 25/50/5 with $200 deductible for property damage
- DC follows a fault-based tort system for auto accident claims
- The DC Automobile Insurance Plan (DCAIP) provides coverage for high-risk drivers
- Penalties for driving without insurance include fines up to $5,000, license suspension, and vehicle impoundment
Last updated: January 2026
DC Auto Insurance Requirements
Overview of DC Auto Insurance Law
The District of Columbia requires all motor vehicle owners to maintain liability insurance before operating a vehicle on DC roads. DC's auto insurance requirements are governed by DC Code Title 31, Chapter 24 and enforced by the Department of Motor Vehicles (DMV) in coordination with DISB.
Minimum Liability Coverage: 25/50/10
All DC-registered vehicles must carry at least the following liability coverage:
| Coverage Type | Minimum Limit | What It Covers |
|---|---|---|
| Bodily Injury - Per Person | $25,000 | Injuries to one person in an accident you cause |
| Bodily Injury - Per Accident | $50,000 | Total injuries to all persons in an accident you cause |
| Property Damage - Per Accident | $10,000 | Damage to others' property in an accident you cause |
Understanding 25/50/10
Example Scenario:
- You cause an accident injuring 3 people with injuries totaling:
- Person A: $30,000 in medical bills
- Person B: $15,000 in medical bills
- Person C: $10,000 in medical bills
- Total: $55,000
Your Policy Pays:
- Person A: $25,000 (capped at per-person limit)
- Person B: $15,000 (full amount)
- Person C: $10,000 (full amount)
- Total Paid: $50,000 (capped at per-accident limit)
- Your Liability: $5,000 (for Person A's remaining bills)
Exam Tip: DC's 25/50/10 minimum is lower than many states. Producers should recommend higher limits to adequately protect clients, especially given DC's high cost of living and medical expenses.
Mandatory Uninsured Motorist (UM) Coverage
DC law requires all auto policies to include Uninsured Motorist (UM) coverage at the following minimums:
| UM Coverage Type | Minimum Limit | Details |
|---|---|---|
| UM Bodily Injury - Per Person | $25,000 | Covers your injuries from uninsured driver |
| UM Bodily Injury - Per Accident | $50,000 | Total coverage per accident |
| UM Property Damage | $5,000 | Covers damage to your vehicle (with $200 deductible) |
Key UM Coverage Rules
- Mandatory Coverage - Cannot be rejected or waived
- Same as Liability - UM limits must equal liability limits
- Stacking Prohibition - DC does not allow stacking of UM coverage across multiple vehicles
- Hit-and-Run - UM covers hit-and-run accidents where at-fault driver cannot be identified
- Physical Contact Requirement - For hit-and-run property damage, physical contact must be proven
Underinsured Motorist (UIM) Coverage
Underinsured Motorist (UIM) coverage is optional in DC:
| Feature | Details |
|---|---|
| Purpose | Covers gap when at-fault driver has insufficient coverage |
| Requirement | Optional - must be offered but can be declined |
| Limits | Can purchase up to your liability limits |
| Trigger | At-fault driver's coverage exhausted before full damages paid |
Exam Tip: UM coverage is mandatory in DC and cannot be rejected. UIM coverage is optional but must be offered to the insured.
Optional Auto Coverages
Collision Coverage
| Feature | Details |
|---|---|
| What It Covers | Damage to your vehicle from collision with another vehicle or object |
| Deductibles | Typically $250, $500, or $1,000 |
| Requirement | Optional, but required by lenders for financed vehicles |
| Claim Process | Pay deductible, insurer pays rest up to ACV |
Comprehensive Coverage
| Feature | Details |
|---|---|
| What It Covers | Non-collision damage: theft, vandalism, fire, flood, glass breakage, animal collision |
| Deductibles | Typically $100 to $500 |
| Requirement | Optional, but required by lenders for financed vehicles |
| DC Consideration | Important in DC due to higher vehicle theft rates |
Medical Payments Coverage
| Feature | Details |
|---|---|
| What It Covers | Medical expenses for you and passengers regardless of fault |
| Limits | Typically $1,000 to $25,000 |
| Requirement | Optional in DC |
| Benefits | Pays immediately without determining fault |
Personal Injury Protection (PIP)
| Feature | Details |
|---|---|
| What It Covers | Medical expenses, lost wages, essential services |
| Limits | Varies by policy |
| Requirement | Optional in DC (not a no-fault state) |
| Usage | Less common in DC than in no-fault states |
DC Fault-Based (Tort) System
DC follows a fault-based (tort) system for auto accident claims:
How Fault-Based System Works
- Fault Determination - The driver who caused the accident is financially responsible
- Claim Options - Injured party can:
- File claim with at-fault driver's insurer
- File lawsuit against at-fault driver
- Use own coverage (collision, UM) and allow subrogation
- Comparative Negligence - DC uses contributory negligence standard
Contributory Negligence in DC
DC follows the strict contributory negligence rule:
| Rule | Impact |
|---|---|
| Standard | If you are even 1% at fault, you cannot recover damages |
| Application | Very strict - any fault bars recovery |
| Practical Effect | Fault determination is critical |
| Insurance Impact | Strongly incentivizes adequate UM/UIM coverage |
Critical Exam Point: DC uses contributory negligence, one of the strictest fault standards in the nation. If an injured party is even slightly at fault, they may be barred from recovering from the other driver.
Proof of Insurance Requirements
What DC Requires
| Requirement | Details |
|---|---|
| Carry Insurance Card | Must have proof of insurance in vehicle at all times |
| Electronic Proof | Digital insurance cards on smartphones accepted |
| Present Upon Request | Must show to law enforcement when requested |
| DMV Verification | Insurance companies electronically verify coverage to DMV |
Insurance Identification Cards
DC-compliant insurance cards must show:
- Insurer name and contact information
- Policy number
- Named insured
- Vehicle identification number (VIN) or description
- Policy effective dates
- Coverage verification
Penalties for Driving Without Insurance
DC enforces strict penalties for uninsured driving:
First Offense
| Penalty | Amount/Duration |
|---|---|
| Fine | $150 - $500 |
| License Suspension | Until proof of insurance provided |
| Registration Suspension | Until compliance demonstrated |
| Reinstatement Fee | $100 |
Subsequent Offenses
| Penalty | Amount/Duration |
|---|---|
| Fine | $500 - $1,000 |
| License Suspension | Up to 1 year |
| Vehicle Impoundment | Vehicle may be impounded |
| SR-22 Requirement | May be required for 3 years |
Uninsured at Time of Accident
| Penalty | Amount/Duration |
|---|---|
| Fine | Up to $5,000 |
| License Suspension | Minimum 6 months |
| Financial Responsibility | Must post bond or SR-22 |
| Civil Liability | Personal assets at risk |
SR-22 Requirements
What is SR-22?
An SR-22 is a certificate of financial responsibility filed by an insurer with the DMV:
| Feature | Details |
|---|---|
| Purpose | Proves high-risk driver maintains minimum coverage |
| Who Files | Insurance company files on behalf of insured |
| Duration | Typically 3 years in DC |
| Continuous Coverage | Any lapse results in automatic DMV notification |
| Cost | Premium typically 50-100% higher than standard |
When SR-22 is Required
- Driving without insurance conviction
- DUI/DWI conviction
- Excessive traffic violations
- At-fault accident while uninsured
- License reinstatement after suspension
DC Automobile Insurance Plan (DCAIP)
The DC Automobile Insurance Plan (DCAIP) is the District's residual market mechanism for drivers who cannot obtain auto insurance in the voluntary market.
DCAIP Purpose
| Aspect | Details |
|---|---|
| Function | Residual market for high-risk drivers |
| Eligibility | Drivers denied by at least 2 voluntary market insurers |
| Coverage | Minimum liability coverage only |
| Administration | Administered by DISB-designated servicing carrier |
| Funding | Losses shared among all DC auto insurers |
DCAIP Eligibility Requirements
To qualify for DCAIP:
- DC Resident - Must be District of Columbia resident
- Valid License - Must hold valid DC driver's license
- Two Denials - Must provide proof of denial from 2 different insurers
- Insurable Interest - Must own or regularly use a vehicle requiring insurance
- Not Already Insured - Cannot have existing coverage
DCAIP Coverage and Limitations
| Feature | Details |
|---|---|
| Coverage Available | Minimum liability (25/50/10) and UM (25/50/5) |
| Collision/Comprehensive | NOT available through DCAIP |
| Premium Costs | Significantly higher than voluntary market |
| Policy Term | 6 months or 12 months |
| Cancellation | Can be cancelled for non-payment or fraud |
DCAIP Application Process
- Obtain Denial Letters - Get written denials from 2 insurers
- Complete Application - DCAIP application form
- Submit to Servicing Carrier - Send application and denials
- Premium Quote - Receive premium based on driving record
- Pay Premium - Full premium or down payment required
- Policy Issuance - Coverage effective upon payment
Exam Tip: DCAIP provides only minimum required coverage. Collision and comprehensive are NOT available through the residual market.
Auto Insurance Rating Factors
Permitted Rating Factors in DC
| Factor | Impact |
|---|---|
| Driving Record | Major impact - accidents, violations, DUI increase premiums |
| Vehicle Type | Safety ratings, theft rates, repair costs |
| Coverage Limits | Higher limits = higher premiums |
| Deductibles | Higher deductibles = lower premiums |
| Annual Mileage | More driving = higher risk = higher premium |
| Garaging Location | DC zip codes vary in risk |
| Prior Coverage | Continuous coverage may reduce premium |
Prohibited Rating Factors in DC
| Factor | Prohibition |
|---|---|
| Race/Ethnicity | Prohibited |
| Religion | Prohibited |
| National Origin | Prohibited |
| Sexual Orientation | Prohibited |
| Gender Identity | Prohibited |
| Credit Score | Limited use - must be actuarially justified |
| Education Level | Restrictions apply |
| Occupation | Restrictions apply |
Exam Tip: DC has stricter limitations on using credit, education, and occupation as rating factors than many states.
DC-Specific Auto Insurance Considerations
Urban Driving Environment
| Factor | Impact on Insurance |
|---|---|
| Dense Traffic | Higher accident frequency |
| Parking Challenges | More minor collisions, theft exposure |
| Public Transit | Lower annual mileage for some drivers |
| Federal Presence | Many government vehicles, different liability considerations |
Commuter Patterns
| Pattern | Insurance Consideration |
|---|---|
| DC-Maryland-Virginia Commuters | May need multi-state coverage knowledge |
| Metro Riders | Lower mileage, potentially lower premiums |
| Rideshare Drivers | Need rideshare endorsement or commercial coverage |
| Diplomats | Special immunity considerations |
Rideshare Insurance in DC
Coverage Gap Problem
Personal auto policies typically exclude commercial use:
| Period | Coverage Needed |
|---|---|
| App Off | Personal auto policy |
| App On, Waiting | Rideshare company may provide limited coverage |
| En Route to Pickup | Rideshare company coverage + endorsement needed |
| Passenger in Vehicle | Rideshare company provides primary coverage |
DC Rideshare Insurance Options
| Option | Coverage |
|---|---|
| Personal Endorsement | Extends personal policy to rideshare periods 1-2 |
| Commercial Policy | Full coverage for all rideshare activities |
| Rideshare Company Coverage | May have gaps, especially in Period 1 |
Important: Producers should ensure rideshare drivers understand their coverage gaps and obtain appropriate endorsements.
Test Your Knowledge
What are DC's minimum auto liability insurance limits?
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Test Your Knowledge
What type of negligence standard does DC follow for auto accidents?
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Test Your Knowledge
Is uninsured motorist (UM) coverage required in DC?
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