Car Insurance for High-Risk Drivers in Delaware Explained

High-risk insurance in the First State isn’t usually a special coverage or policy but rather a way for insurers to categorize drivers likely to file claims. However, a high-risk driver may require a policy from an insurer specializing in binding policies with high-risk drivers. Still, the policy won’t differ from a standard one, except it may be far more expensive. 

Insurers assess a driver’s risk of filing a claim when calculating premiums. If a driver poses a high risk of filing a claim, whether that’s because they have a history of driving uninsured, not paying their premiums on time, or their age or gender indicates an above-average risk, insurers may charge higher-than-average premiums to compensate for the risk.

Delaware’s average full coverage policy costs about $2,040 annually, or about 20% more than the national average of $1,670 annually. Since Delaware is already one of the most expensive states for auto insurance, high-risk drivers will likely have difficulty binding a policy with affordable rates.

It’s essential to remember that the cost of insurance premiums ebb and flow with time. Drivers considered high-risk at one point, whether that’s because they’re a 16-year-old new driver or a driver who previously held an SR-22 in another state, will likely see above-average premiums for some time. However, premiums will level out over time, especially the further you get from a traffic incident, or the more you prove yourself to be a trustworthy policyholder and driver.

The Delaware Auto Insurance Plan, or the DAIP, is an assigned-risk auto insurance plan allowing high-risk drivers to carry sufficient insurance if they can’t find an insurer to bind a policy with them. Unfortunately, it’s common for insurers to reject binding a policy with high-risk drivers, as the risk of them filing a claim is too high. 

The DAIP is essentially a pool of insurers who have agreed to bind policies with high-risk drivers at random. When drivers bind a policy through the DAIP, they find insurance on the involuntary market. Such a policy assigns drivers to their insurers at random, neither of which has the option to reject the pairing. 

All drivers in Delaware, whether they have a policy through the voluntary market or DAIP, must have a minimum coverage policy. 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 per accident, $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 also need collision and comprehensive coverages.

While high-risk drivers typically pay double or even triple the average rate when it comes to premiums, they may be able to lower their premiums in a few ways. Firstly, a minimum coverage policy will always be the cheapest policy available. While some drivers may be on board with carrying just the minimum coverage required in the state, others may need more to feel safe behind the wheel.

High-risk drivers who opt for full coverage policies may be able to bind with an insurer that offers stackable discounts. Many insurers, whether local or national, offer policyholders various discounts they can combine to lower their payments.

For example, many insurers offer a bundling discount for those who purchase several insurance products through the same insurer, a multi-car discount for those with several vehicles on the same policy, or a student discount for those who have a young driver who earns good grades insured on their policy. 

Insurers may also offer a good driver discount, or a usage-based discount program drivers may participate in to earn more significant savings that align with their safe choices behind the wheel.

High-risk drivers may have a few options when it comes to the search for an insurer. Drivers should start searching for a policy with the state’s top insurers, like our partners Travelers or Progressive. Standard insurers generally have the best discounts, coverage options, and customer satisfaction rates.

It’s common for standard insurers to reject binding a policy with a high-risk driver. Delawareans who can’t bind policies with standard insurers may search for a smaller insurer specializing in insuring high-risk drivers. However, policies with specialized insurers can get pretty costly, so this may not be an option for every driver.

Finally, if a high-risk driver can’t bind a policy with a standard insurer on the voluntary market, they may have to enroll in the DAIP. All Delawareans must carry a sufficient auto insurance policy by state law, or else they run the risk of serious legal, financial, and insurance-related consequences.

The best way to find the right policy for your needs is to get and compare quotes online. By getting and comparing quotes online, drivers can see which policies they’re eligible for and do further research on their potential insurers so they can ensure they’re getting the best coverage at the lowest rates possible.

Luckily, we have a free quoting tool you can use right here at Clovered. If you’d rather chat with a professional about your quotes or other insurance-related queries, you can contact one of our licensed agents at 833-255-4117 or [email protected].