Delaware Auto Insurance Laws

By Regina Sass

  • Overview

    The minimum insurance requirements in Delaware are very low and may not cover all the damage in an accident. It is advisable to buy extra insurance if at all possible. Also, remember to put all of the driver in your home on the policy and tell the truth to the insurance company about any past accidents or violations.
    Delaware Auto Insurance Laws
    Delaware Auto Insurance Laws
  • Required Insurance

    All drivers must carry bodily injury insurance with a minimum of $15,000 per person and $30,000 per accident.. . The second type of required auto insurance is property damage with a minimum of $10,000. These two will be paid if you are responsible for the accident. The third is personal injury protections with a minimum of $15,000 per person and $30,000 per accident. This is for you and any passengers in your car. The insurance company will pay up to $30,000 per accident, but no more than $15,000 to any one person. This one will be paid no matter who is responsible.
  • Penalties

    If you are caught driving without insurance , you can be fined and your registration, as well as your driver's license, can be suspended. Insurance companies are required to notify the State DMV about any policies that are canceled or have lapsed. For a first offence, you will be fined at least $1,500 and $3,000 for each additional offense that occurs within 3 years of the first. Your license will be suspended for 6 months.

  • DMV Monitoring

    The Delaware DMV sends out random notices requiring drivers to provide proof of insurance for all of their vehicles. It is imperative that you respond because if you do not, the registrations as well as the drivers licenses of everyone listed as a driver of the car will be suspended. In order to get them reinstated, you need to supply the proof of insurance and pay a fine of $25 for each license and $50.00 for each vehicle. You will also have to pay a penalty if you did have any lapse in insurance coverage.
  • Optional Coverage

    There are several types of optional coverage. Collision which will pay for damage to your car resulting from collision with a car or another object. Comprehensive will pay for damage to your car from things like fire, weather, vandals or theft as well as damage to the windshield or windows. Both of these come with a deductible - an amount you will pay out of pocket before the insurance kicks in. Uninsured motorist coverage will pay you for any losses caused by an uninsured or hit and run driver. It has an automatic $250 deductible. Under insured motorist coverage will pay only if the accident is not your fault. It will pay you for your losses if the other driver does not have enough to cover them, but it will not pay for damage to your vehicle. It will pay for bodily injury and property loss. Towing and labor coverage can be very expensive. It is better to join an auto club like AAA. Some insurance companies will include this in the price of your policy. Rental reimbursement coverage will pay a certain amount towards the rental of a car when yours is damaged in an accident and is disabled.
  • Delaware Auto Plan

    If your insurance is canceled and you cannot get another policy because of accidents or driving violations, you can apply for coverage under the Delaware Auto Plan. This plan is mandated by the state. The rates will be higher than regular insurance, and this is the last thing you should consider. The plan is available through any insurance agent. If your driving record improves, you may become qualified for regular insurance again.
  • © High Speed Ventures 2011