Delaware car insurance laws

Each state has its own car insurance laws. Delaware’s car insurance laws, like most other states, require that drivers have a minimum level of auto insurance coverage. There are additional requirements that must be met in addition to the basic liability requirement. Delaware is now a tort state and not a state with no-fault, but it still requires that its drivers have some form of auto insurance.

State mandated car insurance is designed to protect against financial risk associated with driving. The Insurance Information Institute (iii) estimated that roughly 8.5% of Delaware drivers were uninsured in 2019. In 2019, there were over 29,000 auto vehicle accidents and more than 7,000 car-related injuries. These numbers are useful in explaining some of Delaware’s insurance laws as well as highlighting how they can protect drivers financially.

Delaware has car insurance laws

Delaware car insurance laws require all drivers to carry minimum coverage auto insurance. These policies cover two types of coverage: bodily injury liability or property damage liability. These coverages will pay for the expenses of other drivers and passengers if you are responsible for an accident. If they are at fault for the accident, their minimum coverage will cover your expenses.

These are the minimum coverage requirements for Delaware:

  • Bodily Injury: $25,000 for one person, $50,000 for two or more
  • Property damage: $10,000
  • Personal injury coverage: $15,000 per person, $30,000 per couple

Delaware offers liability insurance

Delaware’s minimum insurance coverage requirements require that all drivers have basic liability coverage. Minimum car insurance policies in Delaware are designed to protect you financially from other drivers involved in an accident that you are responsible for. However, minimum coverage does not cover your costs for injuries you cause. Some drivers opt to add additional coverage to their car insurance.

Both comprehensive and collision coverage are popular options for auto insurance. Collision coverage covers the cost of your car being damaged during a collision. Collision insurance covers you for damages to your vehicle from hitting a tree, another vehicle, or an object. However, you must be driving at the time it occurred. Comprehensive insurance, on the other hand can cover damage to your vehicle while it’s parked.

Is Delaware a state of no-fault?

Delaware is a tort-state, which means it is at-fault. Motor vehicle accidents can cause financial damage to Delaware drivers. Drivers who cause more damage than their insurance policy covers can create a problem. Each policy has a limit on the amount they can pay. Drivers who are liable for higher costs than their policy covers may be required to pay out of pocket.

Driving without insurance in Delaware carries severe penalties

Driving without car insurance in Delaware is illegal and can land you in hot water. For the first offense, you will be fined $1,500. The fines for subsequent offenses can reach $3,000. The counter resets if you are inactive for three years or more. Your license will be suspended for six months after the first offense and for longer for any subsequent violations.

These fines could end up costing you more than just paying for your auto insurance. The average price for full coverage auto insurance in the U.S. is $1,674 per year, which is slightly more than the first fine for driving without insurance in Delaware. A second penalty could be twice the amount of a full-coverage auto policy’s annual payments.

Additional options for auto insurance in Delaware

Some drivers add additional coverage to their auto insurance plans to cover the limits of basic liability insurance. Comprehensive, collision and medical coverage are all options for drivers looking for coverage that covers their injuries and property. Each of these plays a role in protecting the insured from financial loss and are available from many car insurance companies.

  • Medical payments coverage can help cover the medical expenses of the driver and their passengers, no matter who is at fault for the accident. These policies generally have no deductibles. The best part about medical coverage is the fact that it goes with the insured everywhere they go, regardless of whether they are driving or walking.
  • Uninsured and underinsured motorist coverage can help in accidents where the other driver is at fault and is either uninsured or underinsured. These coverage types cover the driver’s basic liability insurance if they don’t have it, or have not enough.

Questions frequently asked

Which Delaware car insurance company is best?

One person might not have the best car insurance company, while another may be better. This is partly due to the fact that rates and policies can be very individual and nuanced. Experts recommend comparing policies from different providers. For starters, consider the Bankrate guide to the best car insurance companies in Delaware for 2021.

What is the best car insurance Delaware has to offer?

Although different companies may have different rates, every customer gets a customized quote. Rates are affected by many variables such as age, driving record, and location. The cheapest company may not be the best for you. Consider the Bankrate guide to the cheapest car insurance companies in Delaware for 2021.

What is the cost of car insurance in Delaware?

Delaware’s auto insurance costs are slightly higher than the national average. On average, in Delaware, a full coverage policy costs $1,775 per year. The average U.S. price is $1,674. The Delaware average annual minimum coverage policy cost is $787.