Delaware car insurance requirements and laws

Minimum car insurance requirements

Delaware requires two things on every registered vehicle (21 Del. C. § 2118): liability insurance at the limits of the state's financial responsibility law, which are 25/50/10, and personal injury protection (PIP) of at least $15,000 per person and $30,000 per accident. Uninsured motorist coverage is also built into every policy unless you reject it in writing. Compare states with the state car insurance requirements lookup.

What Delaware PIP pays. PIP covers reasonable medical, hospital, dental and funeral costs (funeral up to $5,000), net lost earnings and the cost of hiring help for tasks you can no longer do, for expenses incurred within two years of the crash. It covers you, your household and passengers in your car, plus pedestrians hit by your car in Delaware. You can choose deductibles or other reductions on the PIP that protects you and your household, but only in a signed, written election. Personal injury protection (PIP) explained covers PIP in general.

What the minimums mean in practice. Delaware's $10,000 property damage minimum is among the lowest in the country. If you cause a crash that totals a $28,000 car, your policy pays $10,000 and the owner can pursue you for the other $18,000. On the injury side, if the other driver has $40,000 in medical bills, $15,000 may come from their own PIP and your $25,000 bodily injury limit is available for the rest of their claim. Serious injuries can exceed both quickly. how much liability coverage do you need? can help.

Fault system and what it means after a crash

Delaware is usually described as an add-on state. It requires no-fault PIP, but it does not limit your right to sue the driver who caused the crash. After a crash, your own PIP pays your medical bills and lost wages first, regardless of fault. Claims for losses beyond PIP, including pain and suffering, go against the at-fault driver's liability insurance. See no-fault vs at-fault states.

Delaware applies modified comparative negligence with a 51% bar (10 Del. C. § 8132). You can recover as long as your negligence is not greater than that of the people you are suing, and your damages are reduced by your share of fault.

Personal injury suits generally must be filed within two years (10 Del. C. § 8119) and property damage suits within three (§ 8106). See statutes of limitations for car accident claims.

Optional coverage worth considering here

• Higher uninsured/underinsured motorist limits. UM is included at the minimum unless you reject it, and insurers must offer additional UM/UIM up to $100,000 per person and $300,000 per accident, capped at your own liability limits (18 Del. C. § 3902). The Insurance Research Council estimates about 17.6% of Delaware drivers were uninsured in 2023, above the national 15.4%. See uninsured and underinsured motorist coverage explained.
• Higher property damage liability. Raising the $10,000 floor to $50,000 or $100,000 usually costs little compared with the risk.
• Collision and comprehensive. Coastal storms, flooding near the beaches and deer collisions downstate make comprehensive worth pricing (comprehensive coverage explained).
• Higher PIP limits. Insurers offer PIP above $15,000; consider how your health insurance and sick leave would cover a long recovery.

What drives rates in Delaware

The NAIC puts Delaware's average annual expenditure at $1,462 in 2023, above the national average of $1,282. These figures mix all policy types and are not quotes (What NAIC auto insurance data measures).

Mandatory PIP adds a layer of medical coverage that many states do not require. Heavy through-traffic on I-95 and Route 1, summer beach traffic, a relatively high share of uninsured drivers and Northeast-level repair and medical costs all add to claim costs. Rates in the Wilmington area generally differ from those in Kent and Sussex counties (Why your ZIP code changes your car insurance price).

Penalties for driving uninsured

Delaware sets mandatory minimum fines for driving without the required coverage (21 Del. C. § 2118):

• First offense: a fine of $1,500 to $2,000 and a six-month suspension of your driver's license or driving privileges.
• Second offense within three years: a fine of $3,000 to $4,000 and another six-month suspension.

A court can suspend all or part of the minimum fine if you buy insurance between the charge and sentencing. The Division of Motor Vehicles can also suspend the vehicle's registration when insurance lapses, and reinstatement requires paying any penalty plus a $50 registration reinstatement fee. See penalties for driving without insurance.

SR-22 and high-risk drivers

Delaware's Division of Motor Vehicles can require proof of future financial responsibility, usually an SR-22 filed by your insurer, under the state's safety responsibility law (21 Del. C. ch. 29) after an uninsured crash, a serious conviction or a suspension. The DMV sets how long you must keep it. SR-22 insurance explained explains the process, and high-risk car insurance: options when insurers say no covers options if standard insurers decline you.

Insurers with a strong presence in Delaware

Delaware is served mainly by national carriers: State Farm, GEICO, Progressive, Allstate and Nationwide all write large volumes, and USAA serves military families near Dover Air Force Base. Regional mid-Atlantic mutuals sold through independent agents can be worth a quote as well; see regional car insurers: when smaller carriers can beat the giants.

Where to get help

The Delaware Department of Insurance handles consumer complaints through its Consumer Services unit: call 800-282-8611 (toll-free in Delaware) or 302-674-7300, or email [email protected]. The main office is at 1351 West North Street, Suite 101, Dover, DE 19904, with offices in Wilmington and Georgetown. You can file complaints online at insurance.delaware.gov. how to file a complaint against a car insurance company explains the process. Suspensions and registration issues go to the Division of Motor Vehicles; for injury disputes, consult a licensed Delaware attorney.