Is Delaware a No-Fault State?

Drivers in Delaware must have mandatory no-fault coverage on their auto insurance policies because the state is one of 13 no-fault states. Generally, no-fault states require drivers to have a first-party medical benefit (FPMB) on their Delaware car insurance policies to cover the medical expenses they may incur in an accident. 

No-fault laws might be a bit tricky to understand because they’re less popular than tort laws. Let’s look at how no-fault laws affect auto insurance in Delaware, what it means for Delawareans in car accidents, and the intricacies of this law. 

Yes, Delaware is a no-fault state as far as auto insurance is concerned. Drivers must carry a minimum limit of personal injury protection (PIP), as this is the required FPMB in the state. Policyholders can use PIP to cover the medical expenses they incur in an accident, regardless of who caused it.

Even though the Diamond State is a no-fault state, drivers must carry some tort coverage, too. Auto insurance laws in the 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 PIP per person, and $30,000 in PIP per accident (15/30 PIP). Those who finance or lease their vehicles may require comprehensive and collision coverages.

On average, a full coverage policy in Delaware costs about $2,040 annually, or about 20% more than the national average of about $1,670 annually. While a minimum coverage policy typically costs half as much and will always be the cheapest policy in the state, it also only contains about half (or even less than half) the coverage a full coverage policy may have. Drivers with minimum coverage policies only have coverage for a limit of their own medical expenses and some of another driver’s expenses, should the policyholder be considered at fault in an accident.

Those who feel a minimum coverage policy doesn’t provide sufficient protection may opt for a full coverage one. Generally, full coverage policies in the First State will contain higher limits of the required liability and PIP coverages, plus several optional coverages like medical payments coverage (MedPay), collision coverage, comprehensive coverage, uninsured motorist coverage (UM), underinsured motorist coverage (UIM), and gap coverage, among others.

The no-fault law in the Diamond State requires drivers to carry a minimum limit of 15/30 PIP coverage on their policies. Drivers who opt to carry full coverage policies may raise their limit up to 100/300 in PIP coverage. While Delaware is technically a no-fault state because drivers are required to carry no-fault insurance, each no-fault state’s laws differ slightly.

As part of the no-fault law, Delawareans must carry a minimum limit of PIP coverage, but in an accident, they can sue each other freely. Generally, no-fault states have stricter laws when it comes to pursuing legal action after an accident. However, Delawareans have similar freedoms to drivers in tort states regarding legal action after an accident. 

Even though the First State is a no-fault state, drivers must carry some liability coverage, often called tort coverage. Delawareans carry liability coverage to cover the expenses the victim may incur in an accident caused by the policyholder. 

While drivers should always have PIP coverage to cover their initial medical expenses following an accident, should the victim be injured beyond the limit of their PIP coverage, they would need to invoke the at-fault driver’s liability coverage to continue receiving coverage.

Generally, states adopt no-fault laws if there is an above-average population, population density, or population of uninsured drivers in the state. While Delaware is one of the smallest states, it has one of the largest population densities in the country.

States look to population, population density, and population of uninsured drivers when considering a no-fault law because an above-average number of any of these populations may indicate a needless burden on the insurance and legal systems. 

In the case of Delaware, a high population density leads to more drivers on the roads. With more drivers on the roads comes an increased likelihood of accidents. With an increase in accidents comes an increase in insurance claims and legal action pursued by accident victims. 

States typically adopt no-fault laws to help mitigate the burden on the insurance and court systems. While Delaware’s no-fault law may relieve the insurance systems, as drivers default to their own PIP coverage before seeking the at-fault driver’s liability coverage, the law does little to ease the burden on the court systems. The no-fault law in the First State doesn’t bar drivers from suing each other as no-fault laws in other states might. 

While Delaware isn’t an at-fault state when it comes to auto insurance, it does treat accidents on an at-fault or tort basis when it comes to legal action following an accident. Typically, drivers in no-fault states have limited access to legal action after an accident. However, Delawareans have similar freedoms to drivers in tort states regarding legal action.

While Delaware has a no-fault statute for mandatory auto insurance coverage, drivers must also carry liability or tort coverage. No-fault states generally mandate no-fault coverage, like PIP, for drivers to default to in the event of an accident. However, no-fault states may also require drivers to carry liability coverage or other tort coverages to pick up where PIP leaves off. 

Should a policyholder be the victim in an accident, they’ll default to their PIP coverage for initial medical expenses. Then, if their medical expenses exceed their PIP limit, they would invoke the at-fault driver’s at-fault, or liability, coverage. 

Delaware is a no-fault state, especially when it comes to auto insurance, but it’s different when it comes to accidents. While Delawareans are required to carry PIP coverage on which they default to cover their medical expenses following an accident, they are allowed full freedom to pursue legal action following an accident. This is typically standard in tort states, not in no-fault states.

In most no-fault states, drivers are required to have no-fault coverage on their insurance policies on which they would default in an accident. In exchange for the expansive coverage, drivers in no-fault states typically have less freedom when pursuing legal action after an accident. In Delaware, however, drivers have more freedom than in other no-fault states when pursuing legal action after an accident. 

High-risk drivers in the Diamond State who cause several accidents or are caught driving without insurance typically face insurance premiums that are double or triple the average rate in the state.

It can be tough to select the right auto insurance in Delaware for your needs when there are so many options. However, getting and comparing quotes online can help make the process less overwhelming, offering you all the policies you qualify for in one place so you have all the tools you need to make the right decision.

Lucky for you, we’re quoting experts here at Clovered. We even have a free quoting tool you can use to view and analyze 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].