Delaware Car Insurance Requirements Guide

We’ve done all the legwork to find information about the laws surrounding auto insurance in Delaware. Then, we went a step further to break it down into easy to understand terms. Get to reading or call an agent at [mapi-phone /] if you’d like someone to walk through it.

What are the auto insurance coverage requirements in Delaware?

Driving without insurance is not something we would recommend. We mean that in two ways. One: it can get you into trouble. Two: you won’t have any protection if anything bad happens to you and your car. Because Delaware is a “no-fault insurance” state meaning your insurance company will pay some of the expenses if you get into an accident no matter whose fault it is you have to have personal injury protection insurance (PIP). That type of insurance also must have the following minimum requirements .

• $10,000 Personal Injury Protection policy
• $10,000 Property Damage Liability
• $15,000 for injury or death of one person
• $30,000 for bodily injury or death of two or more

Is purchasing additional or optional insurance coverages a good idea?

While the minimum coverage mentioned above complies with the law, it won’t necessarily save you from having to dip into your vacation fund to pay for an accident if it gets pricey. Give some thought to whether or not you should add optional insurance coverages to the following categories for additional car insurance protection:

Collision Coverage – Collision coverage helps cover costs if you get into a crash.

Medical and Funeral Services Coverage – If someone is hurt or killed in an accident, this coverage can help cover expenses.

Uninsured/Underinsured Motorist Coverage – A lot of people drive uninsured or without any insurance. Protect yourself from the potential financial loss of getting into an accident with one of the people by having this coverage.

Rental Car Coverage – If you can’t drive your car after an accident, having rental car coverage can help pay for a rental car while yours is out of commission.

Towing and Labor Coverage – Towing and labor coverage can help pay for roadside assistance and/or towing fees of the vehicle covered under the policy.

How much do auto insurance customers in Delaware pay for car insurance?

Based on our research, insurance rates in Delaware are on an upward trend over the past few years.  Last year, drivers payed on average 1,291.27, but that doesn’t mean you can’t pay less.  We found the cheapest insurance companies to be from the following:

Don’t over pay for car insurance.  We suggest requesting rates from at least three companies so that you can be certain you are getting the most affordable coverage.

How are insurance premiums determined?

Insurance rates aren’t random. Ultimately, an auto insurance rate is determined by how risky you appear to be to an insurance company. Risk profiles can differ from company to company. For example, one company may determine that someone with a PhD is a lot less risky, and will give that person a lower rate. Whereas another company may not even look at education level when determining insurance rates. Long story short, there are a lot of different variables that go into determining an insurance rate. Below is a small snapshot of some of the variables companies use to determine insurance rates in Delaware.

• Age
• Driving record
• Address
• Occupation
• Credit score**
• Make and model of your car
• How far you drive and what for

You can cut your insurance premium down by driving a safety rated car, having a high credit score, being an experienced driver, and living in a safe area.

**In Delaware, your credit score can only be used by insurance companies when you first obtain coverage with them. Once you are insured, that same company can’t use your credit history to increase rates upon renewal. 

Have a less than perfect driving record?

Don’t worry. The Delaware Auto Insurance Policy (DAIP) prevents insurance companies from denying you coverage. If you’re worried about finding a policy—and one that doesn’t cost a fortune—visit www.daip.org or ask one of our knowledgable agents about it by calling [mapi-phone /].

What counts as proof of insurance in Delaware?

If you want to renew your license or registration, you’ll have to show proof that you’re insured. You should have an insurance card if you are in fact insured and it will have your:

• Vehicle information: make, model, year, safety rating, and value
• Name and the name of any other drivers on your car’s policy
• Expiration date of your insurance policy
• Address
• Insurance policy number

Violation and penalties for not being insured

If you’re pulled over or are in an accident and don’t have insurance or an insurance card, these are some of the penalties you could incur:

• A fine of $1,500 to $2,000 with a six month suspension of your license for your first offense.
• A fine of $3,000 to $4,000 with an additional six month license suspension for additional offenses.

What are the most common types of cars that are stolen in Delaware?

Everyone has a type. For car thieves in Delaware, it’s these cars*:

• Honda Civic
• Honda Accord
• Ford Pick-Up (Full Size)
• Chevrolet Pickup (Full Size)
• Jeep Cherokee/Grand Cherokee
• Dodge Pickup (Full Size)
• Nissan Altima
• Ford Explorer
• Toyota Camry
• Dodge Caravan

*According to www.nicb.org

We only bring it up because if you drive a car on this list, you could pay more in insurance premiums.

Agents Who Know Everything About Auto Insurance in Delaware

Still have questions about insurance rates, Delaware insurance laws, or any other auto insurance questions? Call an agent at [mapi-phone /].  They can help guide you through the process of purchasing an insurance policy that meets your needs.

Additional Resources:

• Delaware Department of Insurance
• Delaware Department of Transportation