Delaware Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Delaware?

• In the state of Delaware, drivers must carry the minimum auto liability insurance on vehicles before registering in the state of Delaware.
• The minimum auto liability insurance levels are: $10,000 for property damage, $15,000 for personal injury or death to one person, and $30,000 for personal injury or death to more than one person.
• All Delaware drivers must carry proof if insurance coverage at all times.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Delaware, your policy must include minimum liability coverage of:

$10,000 for property damage
$15,000 for personal injury or death to one person
and
$30,000 for personal injury or death to more than one person.

What are the Rental Car Insurance Requirements?

In the state of Delaware it is against the law to operate a motor vehicle without minimum liability, this includes rental cars. If your credit card or your current auto insurance policy does not cover car rentals, the state of Delaware requires that you carry a copy of the rental agreement when renting a motor vehicle, which specifies the insurance coverage. Car rental companies are required by law to offer the minimum amount of liability insurance coverage.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorists Coverage is not required by law in the state of Delaware. However, all Delaware insurance companies are required by Delaware law to offer to sell you uninsured/underinsured motorist coverage. If you choose to exclude this coverage from your policy, you will be required to sign a waiver stating that you have elected to decline UM/UIM coverage.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

It is a common practice for insurance companies to exclude a driver from your policy for a variety of legitimate reasons under the law. This is permitted under Delaware law. Such exclusions must be stated in the policy or by endorsement. The driver’s coverage is not valid while a specifically excluded driver is allowed to drive the vehicle, so it is important to be aware of all policy driver restrictions.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If your auto insurance cancels or lapses for any reason, the Delaware DMV will receive a notice from your insurance provider. The penalties for driving without insurance are stiff. Fines range from $100 up to $1,500 for the first offense, and they can reach up to $3,000 for a second offense.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Delaware, Personal Credit History may be used to determine rates. However, Personal Credit History is not the only deciding factor. Driving record, age, area you live in, and the type of vehicle you drive are also considered when determining auto insurance rates and which products will be offered.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

Delaware is a Tort state. This means that the driver who is at fault in the accident must pay the victims medical expenses and the victim has the ability to file a court claim against the driver found to be responsible for the accident for any additional and related damages including pain and suffering and lost wages.

What is the average auto insurance premium in the state of Delaware? As of what year?

As of 2006, Delaware’s resident’s average insurance premium was approximately $1,024, the 8th most expensive in the nation. This was down 0.3% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Delaware Insurance Department