Delaware Car Insurance: Guidelines to Requirements for Residents

Full information on the state requirements for auto insurance can be obtained from the Delaware Department of Insurance in Dover at 1-800-282-8611 or by visiting their website at http://www.delawareinsurance.gov.

DE is unique in that it is one of the few no-fault states to require its drivers to carry a minimum level of PIP (personal injury protection) insurance. This is intended to assist with the costs of missing wages, medical car, death benefits for the family and funeral expenses in the event that the insured is involved in an accident that results in injury or death.

In addition to its PIP requirements Delaware state law states that all motorists shall carry liability coverage at a minimum of 15/30/10, fifteen thousand dollars to pay for the damages inflicted on the person of the other driver in the event that the insured is responsible for an accident, thirty thousand dollars to pay for total combined expenses in the event that the driver is not alone in the car and ten thousand dollars to pay for any other damages that may have been inflicted, such as the destruction of a guard rail or damage of a mailbox.

Drivers are urged to carry more than the minimum amount of liability coverage as well as comprehensive and collision insurance and uninsured/underinsured motorist coverage. Comprehensive insurance will pay for the damages to the vehicle of the insured in an accident for which he is responsible, whether it is with another DE vehicle or a stationary object (the infamous parked car). Failure to carry comprehensive coverage will result in the insured holding the bag for the full cost of their vehicle repair following an accident.

As not all states require that their drivers purchase liability insurance (and even those that do have drivers who refuse to comply) it is strongly recommended that all residents include uninsured/underinsured motorist insurance in their car insurance policy. This will provide coverage in the event of a hit and run or an accident with a driver who either does not have insurance or whose insurance will not cover all the expenses incurred.

Most insurance companies will offer several perks to their insurance policies, such as rental insurance, which will assist with the cost of a rental vehicle should the insured’s be unable to be driven, and the costs of towing the vehicle away from the scene of the accident. In addition some companies will offer gap coverage. When a vehicle is involved in an accident and the costs of repair are greater than the vehicle’s blue book value the insurance company will declare it totaled; however, the amount they will pay out is dependent on the vehicle’s book value rather than the amount remaining on the vehicle’s auto loan. Gap coverage exists to pay the difference in these amounts.