Delaware Car Insurance

In Delaware, all drivers are required to carry three types of auto insurance:

I. Bodily Injury Protection - $15,000/$30,000

If you are responsible for the injury or death of another person and have minimum coverage, your insurance company will pay:

        Up to $15,000 to one person involved in a single accident

        Up to $30,000 to all people involved in a single accident, with no more than   $15,000 to any one person

II. Property Damage - $10,000

If you are responsible for damages to another person's property and have minimum coverage, your insurance company will pay:

        Up to $10,000 to a person involved in a single accident

III. Personal Injury Protection (PIP) - $15,000/$30,000

Whether you are responsible for the accident or not, your insurance company will pay for the medical expenses and loss of wages for you and your passengers. If you have minimum coverage, your company will pay:

        Up to $15,000 to any one person involved in a single accident

        Up to $30,000 to all people involved in a single accident, with no more than $15,000 to any one person

Also included in PIP coverage is up to $5,000 for funeral expenses.

The minimum amounts in these three categories are relatively low and you may wish to purchase additional coverage to protect yourself from possible claims in higher amounts. Keep in mind, however, that as you raise your coverage, your premiums will increase.

Don't Drive Uninsured: Uninsured drivers are against the law and cost other drivers money in higher insurance premiums. Registered vehicles are randomly checked for coverage and insurance companies will notify the state if coverage is dropped. Driving without Delaware auto insurance can cost you a fine, your license plate or your driver's license.

Optional Coverage

These types of coverage are not required by law in DE. However, if you take out an auto loan, your bank or lender will likely require collision and comprehensive coverage.

        Collision coverage pays for physical damage to your car as the result of your vehicle colliding with an object, such as a tree or another car. This coverage is based on the value of your vehicle and can be costly.

        Comprehensive coverage pays for damage to your car from almost all other causes besides an accident, including fire, severe weather, vandalism, flood and theft. Comprehensive coverage also will cover broken glass, such as windshield damage.

        Uninsured motorist coverage pays if you incur losses from a driver who does not have auto insurance or a hit-and-run driver. This coverage, when in effect, takes the place of the insurance that the other driver should have had but did not. The coverage comes at an automatic $250 deductible for property damage, regardless of the deductible you may have on your other coverage.

        Uninsured motorist coverage will have policy limits. It does not protect the other driver. Your insurance company may sue the other driver for any money the company pays to you because of the other driver’s negligence. You must have made a police report about the accident in order to make a claim under an uninsured motorist policy.

        Under-insured motorist coverage protects you if you are involved in an accident that is not your fault and the other driver does not have enough insurance to cover your loss. This coverage does not pay for damage to your vehicle.

      
An insurance company can generally only cancel your policy if you don’t pay your premiums, if you lose your license or if you do not report something you should have, such as a driving violation when you applied for insurance or a change in your insurance status, such as purchasing a new car and not reporting it to your insurance company.

An insurance company does have the ability to not renew your insurance, as a result of violations or accidents or for other reasons.

If you are left without insurance and no private insurance company will take you as a new customer, you have the ability to purchase insurance through a program called the “Delaware Auto Plan” mandated by the state to provide auto insurance for people who cannot obtain it elsewhere. The rates in the Delaware Auto Plan are higher than through a private company, so it should be considered a last resort. To obtain coverage in the Delaware Auto Plan program, you should contact an insurance agent.