September 2025 Insurance Trends & Challenges in Virginia, DC, Maryland, West Virginia & Delaware
September 2025 Insurance Trends & Challenges in Virginia, DC, Maryland, West Virginia & Delaware
Introduction
As we enter the final quarter of 2025, the insurance landscape across Virginia, DC, Maryland, West Virginia, and Delaware faces a unique mix of regulatory shifts, climate risk pressures, and rising costs. For homeowners, drivers, businesses, and renters alike, understanding these trends is crucial to getting the right coverage and avoiding gaps. In this post, we break down the most salient developments per region and provide actionable tips for clients of Forbes Insurance Agencies.
Key Issues by Region & How They Affect Policyholders
VIRGINIA & DC Region
1. Rising Auto Insurance Minimums
As of January 1, 2025, Virginia increased its required minimum auto liability coverage from 30/60/20 (per person / per accident / property damage) to 50/100/25. Live Insurance News+1
That means many drivers will see higher premiums (or need to adjust their coverage) to meet the new baseline.
Additionally, rising auto parts and repair costs, partly driven by tariffs, may push full-coverage rates up by 5.1% or more through year end. Axios
What to do:
Review clients’ current auto policies and ensure they meet the new minimums.
Examine whether adding optional coverages (collision, comprehensive) still makes sense given higher replacement/repair costs.
Educate clients about how their driving history, vehicle age, and location impact rates more now.
Climate Change and Property Insurance Nonrenewals
In DC, Virginia, and Maryland, nonrenewal rates (i.e. insurers opting not to renew policies) are rising — especially in flood-prone or wildfire-vulnerable regions. Homeowners in coastal Tidewater and low-lying areas are particularly at risk.
The May 2025 Mid-Atlantic floods, which caused widespread flash flooding and heavy rainfall across Virginia, Maryland, and DC, intensified concerns around property risk. The Washington Post+2FOX Weather+2
What to do:
Encourage clients to consider flood endorsements or standalone flood protection if not currently included.
Reevaluate dwelling and contents replacement values, particularly in zones facing growing climate pressures.
Stay alert to nonrenewal notices in client ZIP codes and proactively seek alternative carriers when needed.
3. Health Insurance & Premium Tax Credit Uncertainty
Virginia faces a looming challenge: if Congress does not extend funding for enhanced premium tax credits, about 203,000 Virginians currently benefitting may see sharp increases in what they pay. Cardinal News
Similarly, in Maryland, insurers on the ACA marketplace are proposing significant premium hikes, citing the potential loss of such credits. WYPR
What to do:
For clients on ACA / marketplace health plans, alert them to possible rate changes in 2026 and help them explore alternatives early.
Track state-level mitigation efforts, some states may bolster subsidies or propose relief programs.
4. Title Insurance & AOLs (Attorney Opinion Letters)
The Virginia Insurance Commissioner recently issued a warning: title alternatives like attorney opinion letters (AOLs) cannot substitute for full title insurance. ALTA.org
Some entities have tried to market AOLs as lower-cost substitutes, but regulatory authorities caution against misrepresenting them.
What to do:
Advise homebuyers and real estate clients about the difference between full title insurance vs. opinion letters.
Ensure your agency’s title insurance referrals are clearly compliant and documented.
MARYLAND
Legislative Changes in 2025
The Maryland Insurance Administration’s Bulletin 25-9 summarizes over 30 newly enacted insurance-related laws. Maryland Insurance Administration+1
Notable changes include expanded mandates for preventive health services, hearing aids, cancer screenings, and protections around adverse decisions and genetic testing. ilsainc.com
There are also updates to automobile insurance oversight and consumer protection rules. ilsainc.com
What to do:
Make sure your team is aware of new required coverages and disclosure obligations.
For health plans in MD, review whether clients qualify for newly mandated services or protections (e.g. expanded preventive care).
Adjust quote templates and policy recommendations to incorporate these legislative changes.
Rising Insurance Costs
Maryland consumers are feeling pressure: premium increases in property, auto, and health lines are squeezing household budgets. consumerfed.org+2ilsainc.com+2
Insurers in Maryland’s marketplace have signaled they may pass through cost increases tied to federal subsidy changes. WYPR
What to do:
Offer to audit clients’ current policies to uncover savings (bundling, discounts, adjusting deductibles).
Consider more aggressive marketing of multi-policy discounts or loyalty benefits.
Keep clients apprised of regulatory or legislative advocacy efforts that might affect premium relief.
DELAWARE
Marketplace Premiums Reaching New Highs
Insurers in Delaware have filed rate increases for 2026 in the ACA marketplace. These hikes are partly driven by the expiration of enhanced Premium Tax Credits and federal budget rules. State of Delaware News
The Delaware Department of Insurance has also affirmed vaccine insurance coverage, which may affect health plan design and reimbursement. insurance.delaware.gov
What to do:
Help Delaware health-plan clients review renewal notices carefully and plan ahead for higher out-of-pocket burdens.
Where possible, explore switching carriers or plan tiers.
For small business or employer groups, negotiate plan design changes or cost-sharing to maintain affordability.
Legal & Litigation Risks
In a recent Delaware Supreme Court ruling, CVS Health was found not covered by insureds’ policies in opioid-related litigation (Insurance Journal).
This highlights the evolving legal exposure for both insurers and policyholders, particularly in large-scale liability cases.
What to do:
For corporate or business clients, review liability coverage limits and exclusions related to mass torts, opioid issues, or public health matters.
Consider specialized liability or excess protection for high-risk industries such as pharmacies and healthcare systems.
WEST VIRGINIA
While not as frequently in headlines as other states, West Virginia faces its own challenges:
Regulatory & Social Policy Changes
In 2025, West Virginia passed the Riley Gaines Act (SB 456), which legally defines the terms “male” and “female” in state code and limits recognition of nonbinary identities in certain contexts. governor.wv.gov+2West Virginia Watch+2
Insurance providers should anticipate heightened legal or discrimination-related risks arising from this shift, especially for policies in sectors with exposure to gender identity and civil rights issues.
What to do:
Review liability coverages and exclusions that might be triggered in disputes over nondiscrimination or identity-based regulations.
Consider enhanced legal protection or specialty coverage for clients in sensitive industries (e.g. education, healthcare, social services).
What to do:
Monitor state rules or legal challenges that could affect coverage for gender-affirming care, identity-based risk, or anti-discrimination obligations.
For clients in sectors like healthcare or education, ensure liability and E&O (errors & omissions) coverages reflect emerging social policy risks.
Ready to Protect What Matters Most?
Life brings surprises, but your insurance coverage shouldn’t. At Forbes Insurance Agencies, we provide tailored protection for Home, Auto, Life, Business, Condo, Renters, Boat, Motorcycle and ATV so you can face tomorrow with confidence. From flood endorsements in Virginia and DC to affordable health coverage options in Maryland, Delaware, and West Virginia, our team is here to guide you every step of the way.
📞 Call us today at Broadlands (703) 773-7301 or Reston (703) 448-3000
📍 Visit us in Broadlands & Reston, VA
🌐 Explore your options at fia.forbesinsuranceagencies.com
Your peace of mind is just a policy review away. Let’s make sure you’re fully covered, because when challenges come, you’ll want Forbes Insurance Agencies by your side.
