Average Cost of Car Insurance in Delaware

Let’s check out how insurers determine costs, why the average car insurance policy in Delaware is more expensive than the national average, and how to get premiums below the state average. 

When it comes to car insurance rates, Delaware ranks among the top ten most expensive states for auto insurance. The average full coverage policy in the Diamond State costs about $2,040 annually, or about 20% more than the national average of $1,670. A minimum coverage policy in the state, that is, a policy that only meets the state’s requirements but doesn’t exceed them, may cost about $1,020 annually. 

It’s important to remember that car insurance rates are highly subjective based on the driver, policy, insurer, and state. In some states, auto insurance is just more expensive–as is the case for Delaware. Since the First State is a no-fault state, drivers must have a minimum amount of personal injury protection (PIP), thus raising the average rate.

Auto insurance laws in the Diamond 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 (25/50/10 liability coverage), $15,000 in PIP per person, and $30,000 in PIP per accident (15/30 PIP). Those who lease or finance their vehicles may be required to have a full coverage policy with collision and comprehensive coverages added on.

While many drivers may maintain the same minimum coverage policies, premiums vary vastly from driver to driver. While a middle-aged driver with a clean driving record may pay premiums below the average rate, a 16-year-old who just got his license may pay double the average rate. 

Insurers use several factors about drivers to determine their premiums. Each factor that’s weighed in the decision helps the insurer assess a driver’s risk of filing a claim. Some commonly used factors are one’s insurance history, driving record, gender, age, and ZIP code, among several other factors.

Drivers with a poor insurance history or driving record are the most likely to have above-average premiums, as they’ve proven themselves to be high-risk drivers. Delawareans who drive without insurance or otherwise recklessly, possibly mandating an SR-22, will surely face an increase in their premiums for years to come, as well as other penalties. 

The cost of auto insurance in Delaware is around $2,040 annually for a full coverage policy but will always vary from driver to driver, insurer to insurer, and policy to policy. Typically, insurers offer base rates around the state average or a bit below to entice drivers. 

Generally, drivers who opt for a minimum coverage policy pay about half the cost of a full coverage one, so many drivers will see rates for such a policy at about $1,020. While a minimum coverage policy may be the cheapest policy in the state, it may not always be the best. Typically, the best policy will be a full coverage policy from one of the state’s top insurers with lower-than-average base rates and discounts tacked on to lower premiums even further. 

Drivers need to note that premiums aren’t the only cost associated with auto insurance. Before accessing their coverage benefits, policyholders must pay their deductible. Policies with high deductibles typically have lower premiums, and those with low deductibles typically have high premiums. Neither choice is better than the other – it’s dependent on the policyholder’s personal preferences. 

Delaware is one of the most expensive states for auto insurance, which may come as a shock to some drivers. Since the Diamond State is a no-fault state, drivers must carry a minimum limit of PIP, the most expensive coverage one can have on their policy. 

Typically, no-fault states and states with above-average populations, population densities, or populations of uninsured drivers have higher-than-average auto insurance premiums. While Delaware is one of the smallest states in the country, it’s also one of the most densely populated. 

With such a high population density in such a small area, there are more drivers on the roads and a higher statistical likelihood of accidents. When many drivers get into accidents, insurance premiums rise, and state governments are pressured to relieve the burden from the insurance and legal systems by enacting no-fault laws. Thus, Delaware is a no-fault state with high premiums. 

The average insurance policy in Delaware is a full coverage policy from one of the state’s top insurers that offers lower-than-average base rates, various discounts, and plenty of optional coverages. While drivers are only legally required to maintain a minimum coverage policy, many bind full coverage policies for the expansive range of protection they provide. 

The average full coverage policy in the First State will contain higher limits of the required liability and PIP coverages, plus several optional coverages. Delawareans often add uninsured motorist coverage (UM), underinsured motorist coverage (UIM), collision coverage, medical payments coverage (MedPay), comprehensive coverage, and gap coverage to their policies, among other optional protections. 

Whether you’re a young driver binding a policy for the first time, a skilled driver searching for lower rates, or curious about the average range of premiums you’re eligible for, the best way to find the right policy for your lifestyle and budget is to get and compare quotes online. By getting and comparing quotes online, you can see all your potential policies in one place and make an informed decision that suits your needs. 

Luckily, quotes are our specialty here at Clovered. We even have a free quoting tool you can use to access your unique quotes in minutes. If you’d rather chat with a professional, we have those too! You can contact one of our licensed agents at 833-255-4117 or [email protected].