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Here’s everything you need to know about car insurance in Delaware.
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(855) 909-2474Request a free quoteIn the state of Delaware, auto insurance is a legal requirement, no matter how old your car is or how often you drive it. Every one of the 812,529 licensed drivers in Delaware must carry a minimum amount of coverage to get behind the wheel legally. On average, Delaware drivers spend $1,252 per year on car insurance, which is 20 percent more expensive than the national average rate.
Whether you recently moved to Delaware or are getting ready to purchase your first auto insurance policy in the state, you must understand Delaware’s unique car insurance laws and requirements. We’ll explain everything you need to know before getting car insurance in Delaware, including which providers to consider and how to get a more affordable rate.
In Delaware, you only need to carry bodily injury liability, property damage liability, and PIP to meet the minimum insurance requirements. However, it’s a good idea to purchase more coverage than what’s required.
For liability insurance, for example, Delaware drivers should consider purchasing at least $100,000/$200,000 in bodily injury coverage, and $50,000 in property damage coverage. For PIP, it’s best to purchase double the minimum required coverage.
If you want the most protection, as well as coverage for your vehicle, a full coverage policy is the way to go. Here are some other coverages to consider:
Comprehensive car insurance protects your vehicle in non-collision situations. For example, comprehensive insurance will pay for damages resulting from theft, vandalism, falling objects, hail damage, fires, and floods. You don’t get to choose your coverage limits with this type of insurance. In most cases, you’ll be reimbursed based on your car’s actual cash value (ACV), which your insurance company will determine.
As the name suggests, collision insurance is designed to cover your vehicle after an accident. It will pay for your vehicle’s repairs in an accident that you cause, and in most cases, you’ll be compensated for repairs based on your car’s ACV.
Uninsured motorist coverage can be a lifesaver if another driver hits you and doesn’t have auto insurance or enough coverage to pay for your losses. Uninsured motorist insurance also covers hit-and-run accidents. At least $100,000 in coverage will provide adequate protection in most cases.
Car insurance costs vary by state. According to 2020 data from the National Association of Insurance Commissioners (NAIC), the average cost of auto insurance in Delaware is $1,252 per year, which is about 20 percent higher than the U.S. average.
However, your car insurance premium will depend on the type of coverage and the amount of coverage you buy. In Delaware, the average premium for a minimum coverage policy is $863 per year. If you want physical damage coverage, you’ll pay an average of $345 per year for collision insurance and $140 per year for comprehensive insurance.
Car insurance rates are personalized. Before you purchase a policy, get a few quotes and compare them to find the lowest rate for your situation and insurance needs.
In addition, car insurance companies are allowed to charge different rates. We found Delaware car insurance policies that cost as little as $970 per year and as much as $2,192 per year. Learn how to find the cheapest car insurance coverage, whether you have a clean driving history or not.
There are dozens of car insurance companies that sell policies to Delaware drivers. Here are some of the providers you might consider:
Consider not only premiums, but also customer service, average time responding to claims, and other non-monetary factors.
Having car insurance is not enough to satisfy the legal requirements in Delaware. You also need to carry proof of liability insurance with you at all times. If you are caught driving without proof of insurance in Delaware, the penalties may include a fine between $1,500 and $2,000, and license suspension for up to six months.
In Delaware, you’re allowed to carry physical or digital proof of insurance (whichever you prefer). Most insurance companies provide electronic proof of insurance through a mobile app. Alternatively, you should be able to access a digital ID card through your customer portal.
Now that we’ve explained Delaware’s insurance laws, let’s look at some of the other laws that drivers should be aware of. Understanding these laws can help you avoid harsh penalties, including fines, license suspensions, and worse consequences like jail time.
Delaware is a no-fault state. That means you must carry no-fault insurance (PIP). After an accident, your insurance company will pay for your medical bills if you are injured, no matter who was responsible for the crash. In fault states, the at-fault driver is responsible for compensating the other person for their medical expenses.
In no-fault states like Delaware, you can file third-party claims for property damage with the at-fault driver’s insurance company after an accident. In this case, you would need to file medical payment claims with your own insurance carrier, since your PIP insurance would cover your medical expenses automatically.
Delaware follows modified comparative negligence laws. That means if you are injured in an accident, you can only seek damages from the other party if you are less than 50 percent responsible for the accident. So, for example, if you got injured in an accident and were found to be 70 percent responsible for the crash, you wouldn’t be allowed to seek compensation from the other party.
In Delaware, drivers aren’t required to carry uninsured or underinsured motorist coverage. Fortunately, most drivers in Delaware have insurance. Data shows that only 9 percent of drivers in Delaware are uninsured, which is 47 percent lower than the U.S. national average of 12 percent.2
In addition, Delaware allows uninsured motorist insurance stacking, but only across multiple policies. That means if you have more than one car insured with the same company, your uninsured motorist coverage limit is multiplied by the number of vehicles you have. For instance, if you choose coverage limits of $50,000/$100,000 and own two cars, your coverage limit would increase to $100,000/$200,000.
Delaware has strict DUI laws. If you are convicted of a DUI in Delaware, the violation will stay on your record forever, whereas most states drop the conviction after five to 10 years.3 For a first conviction, your license will be suspended for three months and you will probably be required to install an ignition interlock device (IID) in your vehicle.
After a second offense, the consequences are much more severe. You will be fined between $750 and $2,500, and you could face 60 days to eight months in jail. A third-offense DUI is a Class G felony, resulting in a fine of $1,500 to $5,000, and jail time of one to two years.
Wearing a seat belt is a primary law in Delaware. That means a law enforcement officer is allowed to cite a driver or passenger for not wearing a seat belt, even if no other violations are present.
In the state of Delaware, texting or otherwise using a cell phone are considered forms of distracted driving. Delaware’s hands-free law makes it illegal to use your cellphone in any way while operating a vehicle if you are over 16 years old or have a learner’s permit.4 Drivers caught violating the hands-free law may receive a $100 fine for a first offense and fines of $200 to $300 for subsequent offenses.
In Delaware, young adults under 18 who want to obtain their driver’s licenses must follow the Graduated Driver Licensing (GDL) law.5 After receiving a learner’s permit, a teen may only drive with a licensed adult over 25 for the first six months. After that, they can drive unsupervised between the hours of 6 a.m. and 10 p.m. After completing the one-year GDL program, teen drivers are eligible to take written and on-road license tests once they turn 17.6
The statute of limitations for auto insurance claims in Delaware is two years for personal injury and property damage claims. If you file a claim outside of the statute of limitations, your insurance company is not obligated to cover your claim. However, you can still file a claim and attempt to receive compensation from the other party.
Car insurance companies are allowed to cancel your policy in the middle of the term if you don’t pay your premium, if you lie on your application, or if you lose your driver’s license.
Your car insurance company must follow certain rules to cancel your insurance policy mid-term. In Delaware, your insurance carrier must notify you of the cancellation within 30 days prior to the expiration date, or 15 days if the reason for cancellation is nonpayment.
Similarly, your insurance carrier can decide not to renew your policy when the policy period is up. For instance, maybe the company no longer offers the type of insurance you purchased, or you have a recent violation such as a DUI on your driving record. Regardless of the reason for non-renewal, your insurance company must notify you at least 30 days prior to the termination date.
You can choose to cancel your car insurance policy at any time, even if it’s the middle of your policy period. Some insurance carriers charge cancellation fees, so ask an agent about penalty fees before you switch providers or terminate your coverage.
In Delaware, self-insurance is allowed if you have more than 15 vehicles registered under your name. Instead of purchasing 15 separate auto insurance policies, you may post a bond of at least $130,000.
Typically, drivers in Delaware are required to have their vehicles inspected every two years, and up to 90 days before the registration expiration date.7 Additionally, vehicles must be inspected if they are being titled and registered in Delaware for the first time. Visit one of the four DMV branches in the state to get your car inspected; see below for the DMV contact information.
SR-22s are not required in Delaware. In other states, this type of certificate proves that you carry the minimum amount of car insurance in your state, and is often required for high-risk drivers who have been convicted of driving under the influence, driving without insurance, or causing serious accidents.
Defensive driving courses aren’t required in Delaware, but they are available in-person and online. These courses teach drivers how to drive safely and avoid hazards on the road. Delaware drivers who complete approved defensive driving courses may receive 10 to 15 percent discounts on their car insurance, valid for three years.
In Delaware, you are required to file a police report following a car accident if it involves more than $500 in bodily injuries, property damage, or fatalities. Report this type of crash right away; otherwise, you could face a fine of $25 to $75 for a first offense, and up to $95 for subsequent offenses.
Delaware insurance companies are allowed to factor your age and credit score into your auto insurance premium. That means women and drivers with excellent credit will pay the lowest rates.
Your car may be declared a total loss if it’s damaged in a covered claim and meets the following criteria:
In Delaware, your car is declared a total loss based on the total loss formula (TLF). The TLF is equal to the market value of your car, minus the salvage value. If the cost of repairs for your vehicle is higher than the TLF, your car insurance provider is allowed to declare your vehicle a total loss.
At this point, you should have a solid understanding of the insurance laws and other regulations in the state of Delaware. If you need to get in touch with someone from the state insurance department or the DMV, here is the information you’ll need.
The exact process for registering your vehicle in Delaware depends on where you purchased the car (dealership vs. private party) and whether the car is being retitled from out of state.
If you are in a car accident in Delaware, expect to pay slightly more for repairs than the national average. Data shows that the average cost of car repairs in Delaware is $389.99 for parts and labor, which is 2 percent higher than the U.S. national average. Of that cost, $146.71 goes toward labor and $243.28 goes toward parts.
Overall, Delaware is a safe state with a low crime rate, but be aware of potential risks. Generally speaking, areas with high crime rates have higher car insurance costs.
Fortunately, motor vehicle thefts are uncommon in Delaware. According to data from the FBI, there were roughly 169 car thefts per 100,000 inhabitants in 2020, which is 46 percent lower than the national average. However, certain regions have higher car theft rates than others.
Metropolitan statistical area | Rate of motor vehicle theft per 100,000 inhabitants in 2020 |
---|---|
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 213 |
Dover, DE | 129 |
Salisbury, MD-DE | 75 |
Delaware has a relatively low rate of traffic fatalities. In 2019, there were 132 fatal crashes in Delaware per 100 million vehicle miles traveled across the U.S.8 That’s about 436 percent less than the average U.S. traffic fatality rate.
Every state has different laws around car insurance and driving. Whether you’re a lifelong Delawarian or planning to move to the First State, you should understand these laws to avoid penalties and fines. Besides, knowing the law may help you drive more safely.
Here are some of the most frequently asked questions about car insurance in Delaware.
No, you don’t need to have car insurance in Delaware if you don’t own a registered vehicle. If you have a driver’s license but don’t own a car, there’s no need to purchase insurance. If you borrow a friend or family member’s car with their permission, their insurance policy will cover you.
If you need to rent a car in Delaware, it will probably come with liability insurance that meets the state’s minimum coverage requirements. However, most rental car companies will provide higher liability limits for a fee. In addition, you should be able to purchase a damage waiver in case you get into an at-fault accident.
Most Delaware car insurance companies offer online quotes. Visit the provider’s website, then input some basic information about yourself, your vehicle, and your coverage needs.
Legally speaking, you don’t need a driver’s license in order to purchase car insurance in Delaware. However, it will be difficult to get a policy without one. Most insurance companies require a valid driver’s license number to finalize a car insurance policy, so you may have to use someone else listed on your insurance policy.
The Instant Insurance Guide: Auto. Delaware Department of Insurance. (2018).
https://insurance.delaware.gov/wp-content/uploads/sites/15/2018/03/Auto-Insurance-Guide-2018.pdf
One in Eight Drivers Uninsured. Insurance Research Council. (2021, Mar 22).
https://www.insurance-research.org/sites/default/files/downloads/UM%20NR%20032221.pdf
DELAWARE DUI LAWS & DRUNK DRIVING PENALTIES. Drinkdriving.org.
https://www.dui-usa.drinkdriving.org/Delaware_dui_drunkdriving_laws.php
TITLE 21. Government of Delaware.
http://delcode.delaware.gov/title21/c041/sc09/index.html
How Do Teens Get a License in Delaware? Delaware Office of Highway Safety. (2010).
https://ohs.delaware.gov/pdfs/PDFs/GDL/OHS_GDL_Brochure.pdf
Teen and Novice Drivers. Governors Highway Safety Administration.
https://www.ghsa.org/state-laws/issues/Teen%20and%20Novice%20Drivers?state=Delaware
Vehicle Services FAQ’s. Delaware Division of Motor Vehicles.
https://dmv.de.gov/VehicleServices/faqs/index.shtml?dc=ve_faqs_inspection
Fatality Facts 2019 State by state. IIHS. https://www.iihs.org/topics/fatality-statistics/detail/state-by-state