Auto Insurance In Delaware: What's The Law?

If you're a driver in Delaware, it's important to know the state's auto insurance requirements to ensure you're complying with the law. The Delaware Motor Vehicle Safety–Responsibility Law mandates that all vehicles used on public roads in the state must be insured with certain types and minimum amounts of liability coverage. So, what exactly are the insurance requirements for drivers in Delaware, and what happens if you don't have insurance?

Minimum insurance requirements in Delaware

In the state of Delaware, it is mandatory for all vehicles used on public roads to be insured with liability coverage. The minimum liability coverage requirements are $25,000 per person and $50,000 per accident for any bodily injury sustained, and $10,000 for property damage. These requirements are in place to ensure that individuals involved in an accident, especially those who are not at fault, are protected and able to receive compensation for any injuries or property damage.

In addition to the liability insurance, all drivers in Delaware must also carry personal injury protection (PIP) insurance. This coverage pays for the driver's or their passengers' medical costs and lost wages resulting from an accident, regardless of who is at fault. The minimum PIP coverage requirements are $15,000 for one person and $30,000 for all individuals injured in a single accident.

It is important to note that these are the minimum insurance requirements in Delaware. Depending on your specific situation and needs, you may want to consider additional coverage options, such as collision coverage, comprehensive coverage, or uninsured/underinsured motorist protection. These optional coverages can provide added protection and peace of mind in the event of an accident.

Delaware takes insurance compliance seriously, and failure to maintain proper insurance can result in fines and registration suspension. When registering your vehicle in the state, you will need to provide proof of insurance, and your vehicle may be subject to random insurance audits. Therefore, it is essential to ensure that you understand the minimum insurance requirements and maintain the necessary coverage to avoid any penalties.

By understanding and adhering to the minimum insurance requirements in Delaware, you can ensure that you are legally compliant and adequately protected in the event of an accident.

Liability insurance

In Delaware, liability insurance is a requirement for all vehicles used on public roads, as per the Delaware Motor Vehicle Safety–Responsibility Law. This type of insurance covers the costs associated with accidents where the policyholder is at fault, including injury to others and damage to other people's property. The minimum liability coverage requirements are $25,000 per person and $50,000 per accident for any bodily injury, and $10,000 for property damage.

In addition, Delaware state law mandates that small businesses with one or more employees must carry workers' compensation insurance. This type of liability insurance helps pay for expenses related to employees becoming injured or ill while on the job, including medical bills and lost wages.

Personal injury protection (PIP) insurance

The minimum PIP coverage required in Delaware is $15,000 per person and $30,000 for all individuals injured in an accident, with an additional $5,000 for funeral expenses. These minimum requirements cover medical expenses, lost wages, and other costs related to an injury sustained in a collision for two years following an accident. However, it is important to note that PIP does not cover pain and suffering.

While the minimum coverage is $15,000 per person, some insurance companies in Delaware offer higher PIP limits, such as Progressive, which offers PIP coverage of up to $100,000 per person and $300,000 per accident. The cost of PIP insurance varies depending on the coverage, deductible, and driving history.

In Delaware, if you are involved in an accident, you must notify the insurance company as soon as possible to file a PIP claim. The insurer will issue a claim number and send a PIP application to initiate the process. It is essential to be thorough when listing all relevant information on the application to avoid claim rejection or contestation.

Proof of insurance

In Delaware, drivers are required to have proof of insurance with them at all times. This can be in the form of an insurance ID card, an official certificate of insurance, or an FR-19 statement from the insurance carrier. This proof must be shown if a law enforcement officer requests it during a routine traffic stop, or if the driver is randomly audited by the state department of motor vehicles.

The FR-19 form is a certification that the vehicle has been continuously insured and that the insurance coverage is currently in force. It is required when the Division of Motor Vehicles audits a vehicle for proof of insurance. The insurance company must submit this form to the DMV via email or fax.

The Insurance Identification Card must be carried in the vehicle at all times and must contain the following information:

• The statement "The Insurance Identification Card must be carried in the vehicle at all times"
• Identification as an "Insurance Identification Card"
• The insurance company name
• The insurer's 5-digit National Association of Insurance Commissioners (NAIC) company identification number
• The name of the insured, which must match the name on the insurance company's records
• The address of the insured (optional)
• Policy number
• Effective date and time period of the policy
• Expiration date, which cannot exceed the term stated in the policy or 6 months
• Vehicle or vehicles insured, including year, make, and Vehicle Identification Number (VIN)

For those with commercial auto coverage, the Insurance Identification Card must also include:

• The name of the commercial entity or registrant that owns or leases the fleet, as carried in the insurer's records
• The policy number with any appropriate designations required by the insurer for commercial or fleet vehicles
• The effective and expiration dates of the policy, which cannot exceed 12 months from the effective date

It is important to note that drivers in Delaware must have at least the minimum required auto insurance coverage. The minimum coverage limits for Delaware-registered vehicles are:

• Bodily injury liability coverage: $25,000 per person and $50,000 per accident
• Property damage liability coverage: $10,000
• Uninsured motorist bodily injury coverage: $25,000 per person and $50,000 per accident (this coverage may be rejected in writing)
• Uninsured motorist property damage coverage: $10,000 per accident (this coverage may be rejected in writing)
• Personal injury protection coverage: $15,000 per person and $30,000 per accident

Penalties for driving without insurance

Driving without insurance in Delaware is a criminal offence and can result in a fine and the suspension of your driver's license. The penalties for driving without insurance in Delaware include fines ranging from $1,500 to $2,000 for a first offence, and $3,000 to $4,000 for a second or subsequent offence within three years. The state will also suspend your driver's license for six months for the first offence and for subsequent offences. If you are unable to provide proof of insurance to a police officer when requested, you will be charged with a fine and your driver's license will be suspended.

Delaware is an at-fault state, which means that if you cause an accident while driving without insurance, you will be responsible for paying for all the damages out of your own pocket. The other driver and their insurance company can sue you, and you may face mounting debt or even bankruptcy as a result. Even if the accident is not your fault, driving without insurance can make it difficult for you to be compensated for damages.

In addition to the legal consequences, your car insurance premium is likely to increase. A single conviction for driving without insurance in Delaware raises annual premiums by an average of 15%, or $272.

To avoid these penalties, it is important to maintain at least the minimum required auto insurance coverage in Delaware. The minimum requirements for auto insurance coverage in Delaware include bodily injury liability coverage of $25,000 per person and $50,000 per accident, property damage liability coverage of $10,000, and personal injury protection coverage of $15,000 per person and $30,000 per accident.

Frequently asked questions