Delaware Auto Insurance Laws and Requirements

Let’s look at how much coverage every Delawarean needs, what the laws look like when it comes to accidents, and how drivers can build their Delaware auto insurance policies to avoid the legal repercussions of driving uninsured. 

In Delaware, the minimum car insurance requirements mandate drivers with vehicles registered in the state to always have an active auto insurance policy. Minimum coverage policies in the First State must have some liability coverage and personal injury protection (PIP). Those without sufficient coverage may face significant legal, financial, and insurance-related consequences. 

Auto insurance laws in the First State require drivers to have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $10,000 in property damage liability per accident (25/50/10 liability coverage), $15,000 in personal injury protection (PIP) per person, and $30,000 in PIP per accident (15/30 PIP) since the First State is a no-fault state. Those who finance or lease their vehicles may be required by their lender or leaser to have collision and comprehensive coverages on a full coverage policy. 

Driving without insurance in the Diamond State is illegal and can lead to penalties ranging from fines and fees to license and registration suspension. While drivers in Delaware don’t need to worry about filing for an SR-22, those who fail to provide proof of insurance will likely be considered high-risk drivers in the state. High-risk drivers generally have higher-than-average premiums for several years until their driving record and insurance history even out. 

In Delaware, insurance laws require drivers to have at least 25/50/10 liability coverage and 15/30 PIP. Delawareans must always have a minimum coverage policy, but many opt for a full coverage policy to protect themselves in various accident scenarios. 

Drivers are only required to have liability coverage and PIP. Those with minimum coverage policies carry PIP to cover any medical expenses they incur in an accident, regardless of who was at fault, and liability coverage to cover the victim’s expenses should the policyholder be at fault in an accident. 

While a minimum coverage policy is enough to ensure a driver won’t face the legal penalties of driving uninsured, and will often be among the cheapest policies in the state, some Delawareans may feel underinsured. Many residents of the Diamond State opt for a full coverage policy instead of a minimum coverage one.

The average full coverage policy in Delaware costs about $2,040 annually, or about 20% more than the national average of $1,670 annually. While Delaware is one of the most expensive states for auto insurance, residents may be able to find a policy with premiums below the state average by binding with one of the state’s top insurers. 

A full coverage policy may be the difference between a minor setback in your savings and financial ruin, as a minimum coverage policy doesn’t offer protection for various circumstances that a full coverage policy might. 

The average full coverage policy in the Diamond State contains higher limits of liability coverage and PIP than what’s legally required and may contain a combination of optional coverages like uninsured motorist coverage (UM), underinsured motorist coverage (UIM), collision coverage, medical payments coverage (MedPay), comprehensive coverage, or gap coverage.

So, while Delawareans may only legally need 25/50/10 liability coverage and 15/30 PIP, many opt for more coverage to remain protected in various accident scenarios.

Yes, the minimum car insurance coverage in Delaware required by law is 25/50/10 liability coverage and 15/30 PIP. Since the First State is a no-fault state, drivers must carry a minimum limit of PIP. Policyholders can use PIP to cover the medical expenses they incur due to an accident, regardless of who caused it. 

While the First State is a no-fault state, drivers must carry liability coverage. Liability coverage is tort coverage, meaning it can only be invoked if fault is assigned in an accident. Should a policyholder exceed their PIP limit and require more coverage, they would invoke the at-fault driver’s liability coverage to cover their medical expenses or vehicle repairs.

It’s important to note that policyholders carry liability coverage to protect any drivers they may harm in an accident where the policyholder is considered at fault. That means that policyholders with minimum coverage policies only carry PIP for their own expenses and will be liable for the remainder of their costs should they exceed their PIP limit. 

Many Delawareans opt for a full coverage policy to carry more coverage for their own expenses, even though more coverage isn’t legally required.

Delaware is one of 13 states with a no-fault law, which mostly affects drivers when it comes to accidents. States typically handle accidents either on a no-fault basis or a tort basis. In Delaware, the state minimum auto insurance all drivers must carry is 25/50/10 liability coverage and 15/30 PIP.

In tort states, at least one driver must be deemed at fault in an accident to invoke their insurance coverage. Generally, drivers in tort states will carry a minimum liability coverage limit to cover the expenses the victim incurs from the accident. This means that policyholders significantly lack coverage for themselves if they’re the at-fault driver.

In Delaware and other no-fault states, drivers carry a first-party medical benefit (FPMB) that helps them cover the medical expenses they incur in an accident, regardless of who caused it. Many states, like the Diamond State, require drivers to have a minimum limit of PIP.

Delawareans who get into accidents will default to their PIP coverage to cover their medical expenses. After paying one’s deductible, one may invoke PIP to cover medical costs up to their coverage limit. At-fault drivers with minimum coverage policies will be liable for expenses exceeding their 15/30 PIP limit. However, those with full coverage policies may carry more PIP than legally necessary or another optional coverage that covers the policyholder’s expenses regardless of fault.

In Delaware, auto insurance limits are required for liability and PIP coverages. Specifically, drivers must carry at least 25/50/10 liability coverage and 15/30 PIP. Most states require drivers to carry some form of auto insurance (except New Hampshire and Virginia), but only a few states, like Delaware, have adopted no-fault laws. 

Generally, a state will adopt a no-fault law based on a few statistics that skew above average: population, population density, and population of uninsured drivers. While Delaware has an average number of uninsured drivers and one of the lowest average populations, it has one of the highest population densities in the country, given the state has such a small square mileage but ample occupational opportunities. 

When a state skews above average in any of the above statistics, there’s a high likelihood of an above-average number of accidents in the state. With many drivers on the roads, there’s an increased risk of accidents and a higher-than-average number of drivers filing claims or pursuing legal action.

When the insurance and legal systems are overrun with claims and cases, states will step in and enact no-fault laws to relieve some of that burden. States with no-fault laws give drivers less access to legal action following an accident and encourage drivers to carry a minimum limit of an FPMB to protect themselves behind the wheel. 

Thus, with fewer drivers pursuing legal action and more with coverage for minor medical expenses, the burdens placed on the insurance and legal systems put there by an above-average number of drivers filing claims are somewhat relieved. 

Whether you’re on the hunt for a minimum coverage policy that meets the state’s requirements or a full coverage one that far exceeds them, there are so many options for auto insurance in the Diamond State it can be difficult to choose. Getting and comparing quotes online is often the quickest and easiest way to select a policy that meets the demands of your lifestyle and budget.

Luckily, you’ve come to the right place for quotes. Here at Clovered, we have a free quoting tool you can use to access your unique quotes in minutes. If you’d rather chat with a professional about your quotes, you can contact one of our licensed agents at 833-255-4117 or [email protected].