Delaware Auto Insurance Regulations
The
Instant Insurance
Guide:
Auto
Info and tips
for buying
automobile
and
motorcycle
insurance
in Delaware
From
Matthew Denn
Delaware's Insurance Commissioner
1-800-282-8611
www.state.de.us/inscom
A Message From
Delaware's Insurance Commissioner
Matthew Denn
Call it "Everything You Ever Wanted To Know
About Auto Insurance But Were Afraid To
Ask." Since I took office in January 2005,
Delawareans have told me what they
needed was a simple and concise guide to
purchasing insurance for cars, trucks and
motorcycles. And so, here it is.
We've covered the basics but, of course,
there's more to tell than can be packed in
these few pages. That's where the wonder of
the internet comes in. Please visit my new
and improved website at www.state.de.us/
inscom for much more detailed information
about auto insurance. A list of some of the
topics covered online appears at the back of
this guide.
Please feel free to call on me and my office
anytime at 1-800-282-8611 with any
questions, issues or problems you have
regarding insurance in Delaware.
The Basics
In Delaware, all drivers are required to carry three types of auto
insurance:
1. Bodily Injury Protection - $15,000/$30,000
If you are responsible for the injury or death of another person and
have minimum coverage, your insurance company will pay:
Up to $15,000 to one person involved in a single accident
Up to $30,000 to all people involved in a single accident, with no
more than $15,000 to any one person
2. Property Damage - $10,000
If you are responsible for damages to another person's property and
have minimum coverage, your insurance company will pay:
Up to $10,000 to a person involved in a single accident
3. Personal Injury Protection (PIP) - $15,000/$30,000
Whether you are responsible for the accident or not, your insurance
company will pay for the medical expenses and loss of wages for you
and your passengers. If you have minimum coverage, your company
will pay:
Up to $15,000 to any one person involved in a single accident
Up to $30,000 to all people involved in a single accident, with no
more than $15,000 to any one person
Also included in PIP coverage is up to $5,000 for funeral expenses.
The minimum amounts in these three categories are relatively low
and you may wish to purchase additional coverage to protect yourself
from possible claims in higher amounts. Keep in mind, however, that
as you raise your coverage, your premiums will increase.
Don't Drive Uninsured
Uninsured drivers are against the law and cost other drivers
money in higher insurance premiums. Registered vehicles are
randomly checked for coverage and insurance companies will
notify the state if coverage is dropped. Driving without insurance
can cost you a fine, your license plate or your drivers license.
Optional Coverage
These types of coverage are not required by law in Delaware.
However, if you take out an auto loan, your bank or lender will likely
require collision and comprehensive coverage.
Collision coverage pays for physical damage to your car as the
result of your vehicle colliding with an object, such as a tree or
another car. This coverage is based on the value of your vehicle and
can be costly.
Important information about collision coverage: Auto insurance
policies only require the company to cover your financial losses, not to
replace your vehicle. In the case of an accident involving an older car,
the cost of repairing it can quickly exceed the value of the car and
your insurance carrier will pay you what the car was worth rather than
fix it. In severe cases, the value of the car may be less than premiums
paid for the coverage. Therefore, if your vehicle is worth less than
$2,000, there is little reason for you to purchase collision coverage,
because you are likely to pay more money in premiums than you
would ever receive as a result of your claim. This coverage may not
pay the full replacement cost of the vehicle or may not satisfy the
balance of your auto loan.
Comprehensive coverage pays for damage to your car from
almost all other causes besides an accident, including fire, severe
weather, vandalism, flood and theft. Comprehensive coverage also
will cover broken glass, such as windshield damage.
Uninsured motorist coverage pays if you incur losses from a
driver who does not have auto insurance or a hit-and-run driver. This
coverage, when in effect, takes the place of the insurance that the
other driver should have had but did not. The coverage comes at an
automatic $250 deductible for property damage, regardless of the
deductible you may have on your other coverage.
Uninsured motorist coverage will have policy limits. It does not protect
the other driver. Your insurance company may sue the other driver for
any money the company pays to you because of the other driver's
negligence. You must have made a police report about the accident in
order to make a claim under an uninsured motorist policy.
Under-insured motorist coverage protects you if you are
involved in an accident that is not your fault and the other driver does
not have enough insurance to cover your loss. This coverage does not
pay for damage to your vehicle.
Towing and labor coverage pays the cost of towing your car to
the repair shop subject to the limit of your policy. Premiums for this
coverage are very inexpensive. However, if you are a member of an
auto club, you probably already have this service.
Rental reimbursement coverage usually pays the cost to rent a
car after an accident, subject to the policy's terms. The premium will
vary from insurer to insurer.
Rates
Things that affect your auto insurance rates, some controllable and
some not:
Gender and age: Men have more accidents on the road than
women; certain age groups tend to have more claims.
Type of vehicle: Luxury and sports cars average a higher
number of claims; also the more expensive a vehicle, the more
expensive it is to insure.
Driving record: Drivers with previous violations or accidents are
considered to be a higher risk.
Discounts: Auto insurers may offer premium discounts for
numerous reasons, including for people who have taken an
approved defensive driving course. Ask your agent what discounts
are available to you.
Amount of coverage: If you choose to carry coverage above
the mandatory minimum, your premiums will be higher.
Deductible amount: Choosing a higher deductible will reduce
the premiums of your car insurance. However, your out-of-pocket
expense will be higher if you have an accident.
Usage of vehicle: The more you drive, the higher the risk and
so the higher the premium.
Where you live: Urban areas have more claims than rural areas
and some areas have more frequent accidents than others.
Marital status: Claims history shows that married persons tend
to have fewer claims.
Ways To Save
Tips on lowering your auto insurance premiums:
Shop around and compare prices. A list of companies that
offer auto insurance in Delaware can be found online at
www.state.de.us/inscom. Or check the yellow pages.
Maintain a good driving record.
Take the highest deductible you can afford on collision and
comprehensive coverage. A higher deductible will mean lower
premiums. But remember that you will be responsible for the
deductible amount if you have an accident.
Take defensive driving. If all drivers of a vehicle complete an
approved course, you can receive 10 percent off a portion of your
auto insurance for three years. If you take a refresher course just
before the end of the three-year period, you can receive a 15
percent discount. A list of defensive driving courses is online at
www.state.de.us/inscom.
Before buying a vehicle, call an agent for a quote on the cost of
insuring it. Sports cars, luxury cars and more expensive cars cost
more to insure. (A quote is only an estimate of the premium.)
Review your policy periodically and update coverage
accordingly. As a car gets older and loses value, you may not need
as much insurance for it. With some cars, it may make sense to
only carry minimum coverage.
Ask whether there are discounts offered for:
Multiple cars on a policy
Good student drivers
Mature drivers
Airbags, anti-theft devices and other equipment
Accident-free record
Other insurance with same company
Repairs
After an accident, your vehicle may need to be repaired. Here are
some things you need to know:
Check your deductible. If the damage to your vehicle is
minor, it may be less than your deductible. For example, if your
bumper needs to be repaired and is estimated to cost $199, and
you have a $250 deductible, you will be responsible for the entire
amount. The insurance company will not owe you or the repair
shop anything until the cost goes over $250.
If you have a $250 deductible and the repair estimate is $350,
you would pay the first $250 and the insurance company would
pay the remaining $100.
The insurance company will assign an adjuster to estimate the
damage to the car and how much the company will pay to have it
fixed. Again, if the damage is determined to be less than your
deductible, you will be responsible for all of the repair amount.
The final choice of repair shop is yours. You may want to
use a repair shop the company chooses. However, if you choose a
different one, be aware you may have to pay the difference if your
body shop's estimate is higher than the insurance company's,
unless the increase can be justified and agreed upon by all
parties.
If you choose to put a brand new part on an older car
instead of a salvaged or remanufactured part, you may have to
pay the difference in cost.
Motorcycles
A motorcycle owner and driver is required to carry the same minimum
amounts of bodily injury protection, property damage and personal
injury protection as any other vehicle (please see "The Basics" at the
front of this guide for a description).
But insurance companies often suggest different policies for
motorcycles. Look for the following:
When inquiring about a policy, an agent may give you a quote
based on the minimum personal injury protection (PIP) limit of
$15,000, but with a $15,000 deductible. That means, unless
you deliberately choose otherwise and pay an additional premium,
you will essentially have no PIP coverage, as the coverage limit of
$15,000 will be reduced to zero by the deductible. Consider other
options which come at a higher premium but with lower
deductibles.
A motorcycle insurance policy may provide only limited
benefits. For example, a lower premium policy may provide
medical and lost wage benefits for only those accidents which
occur (a) on a highway and (b) when there is actual physical
contact with another vehicle. To receive coverage for a greater
range of potential accidents, you will likely have to pay higher
premiums. Ask your agent about the difference between
"restricted" PIP coverage and "unrestricted" PIP coverage.
Need Help?
The Delaware Insurance Commissioner's Office is here to help if you
have questions about or problems with your insurance coverage or
insurance company.
Questions about insurance or complaints about an insurance
company or insurance agent can be made to the Commissioner's
Consumer Services division by phone, by fax, by letter, by email or
with an online complaint form:
1-800-282-8611 toll-free in Delaware
or (302) 739-6775
(302) 739-6278 fax
841 Silver Lake Blvd.
Dover, DE 19904
consumer
www.state.de.us/inscom/complaint.shtml
If complaints to the Insurance Commissioner's Office do not provide a
suitable solution, you may take part in a formal process called
"arbitration." In arbitration, you file a formal complaint against a
company, somewhat like a lawsuit, but instead of a judge and jury,
the case is decided by a three-person panel made up of an attorney
and two insurance adjusters who have nothing to do with the case.
Arbitration is available only after several attempts to resolve the
matter informally have failed and will require a $30 filing fee. To get
more information about the arbitration process, call the Insurance
Commissioner's Office at (302) 739-4251 or go to www.state.de.us/
inscom/departments/consumer/consumerhp.shtml online.
More Online
Visit Insurance Commissioner Matthew Denn's website to find even
more information and tips about auto insurance:
www.state.de.us/inscom
Topics covered online include:
All of the auto insurance companies in Delaware
Adding teenage drivers to your auto insurance
Insuring a leased car
Where you can take a defensive driving course
What to do if your insurance is cancelled
Insurance when you rent a car
Insurance on a borrowed car
How to prevent and report insurance fraud
What To Do
If You're In
An Accident
Stop and keep calm. Do not drive away from an
accident. Do not argue with the other driver over the cause.
Call an ambulance, if needed. Do what you can to
provide first aid, but do not move an injured person unless you
possess medical or lifesaving expertise, or unless there is a
life-threatening event, such as a vehicle leaking gas.
Move your car. In a fender bender or other minor crash,
police advise that you move your car out of the street or
highway, to a clear area where it will not be a hazard to other
traffic. Police will be able to determine who was at fault from
descriptions and evidence.
Call the police. Dial 911 to notify the appropriate law
enforcement authorities. Fully cooperate with the officers
responding to the accident.
Gather information. Exchange insurance; driver's
license; registration information; witnesses' names, phone
numbers and addresses; brief description of how the accident
occurred. Take pictures of accident scene, if possible.
Call your insurance. Use the claims contact number on
your insurance card or call your insurance agent. This person
will go over your policy with you and will verify your coverage.
Get more tips and information
about auto insurance
from Insurance Commissioner Matthew Denn at
www.state.de.us/inscom
Instant Insurance
Guide:
Auto
Info and tips
for buying
automobile
and
motorcycle
insurance
in Delaware
From
Matthew Denn
Delaware's Insurance Commissioner
1-800-282-8611
www.state.de.us/inscom
A Message From
Delaware's Insurance Commissioner
Matthew Denn
Call it "Everything You Ever Wanted To Know
About Auto Insurance But Were Afraid To
Ask." Since I took office in January 2005,
Delawareans have told me what they
needed was a simple and concise guide to
purchasing insurance for cars, trucks and
motorcycles. And so, here it is.
We've covered the basics but, of course,
there's more to tell than can be packed in
these few pages. That's where the wonder of
the internet comes in. Please visit my new
and improved website at www.state.de.us/
inscom for much more detailed information
about auto insurance. A list of some of the
topics covered online appears at the back of
this guide.
Please feel free to call on me and my office
anytime at 1-800-282-8611 with any
questions, issues or problems you have
regarding insurance in Delaware.
The Basics
In Delaware, all drivers are required to carry three types of auto
insurance:
1. Bodily Injury Protection - $15,000/$30,000
If you are responsible for the injury or death of another person and
have minimum coverage, your insurance company will pay:
Up to $15,000 to one person involved in a single accident
Up to $30,000 to all people involved in a single accident, with no
more than $15,000 to any one person
2. Property Damage - $10,000
If you are responsible for damages to another person's property and
have minimum coverage, your insurance company will pay:
Up to $10,000 to a person involved in a single accident
3. Personal Injury Protection (PIP) - $15,000/$30,000
Whether you are responsible for the accident or not, your insurance
company will pay for the medical expenses and loss of wages for you
and your passengers. If you have minimum coverage, your company
will pay:
Up to $15,000 to any one person involved in a single accident
Up to $30,000 to all people involved in a single accident, with no
more than $15,000 to any one person
Also included in PIP coverage is up to $5,000 for funeral expenses.
The minimum amounts in these three categories are relatively low
and you may wish to purchase additional coverage to protect yourself
from possible claims in higher amounts. Keep in mind, however, that
as you raise your coverage, your premiums will increase.
Don't Drive Uninsured
Uninsured drivers are against the law and cost other drivers
money in higher insurance premiums. Registered vehicles are
randomly checked for coverage and insurance companies will
notify the state if coverage is dropped. Driving without insurance
can cost you a fine, your license plate or your drivers license.
Optional Coverage
These types of coverage are not required by law in Delaware.
However, if you take out an auto loan, your bank or lender will likely
require collision and comprehensive coverage.
Collision coverage pays for physical damage to your car as the
result of your vehicle colliding with an object, such as a tree or
another car. This coverage is based on the value of your vehicle and
can be costly.
Important information about collision coverage: Auto insurance
policies only require the company to cover your financial losses, not to
replace your vehicle. In the case of an accident involving an older car,
the cost of repairing it can quickly exceed the value of the car and
your insurance carrier will pay you what the car was worth rather than
fix it. In severe cases, the value of the car may be less than premiums
paid for the coverage. Therefore, if your vehicle is worth less than
$2,000, there is little reason for you to purchase collision coverage,
because you are likely to pay more money in premiums than you
would ever receive as a result of your claim. This coverage may not
pay the full replacement cost of the vehicle or may not satisfy the
balance of your auto loan.
Comprehensive coverage pays for damage to your car from
almost all other causes besides an accident, including fire, severe
weather, vandalism, flood and theft. Comprehensive coverage also
will cover broken glass, such as windshield damage.
Uninsured motorist coverage pays if you incur losses from a
driver who does not have auto insurance or a hit-and-run driver. This
coverage, when in effect, takes the place of the insurance that the
other driver should have had but did not. The coverage comes at an
automatic $250 deductible for property damage, regardless of the
deductible you may have on your other coverage.
Uninsured motorist coverage will have policy limits. It does not protect
the other driver. Your insurance company may sue the other driver for
any money the company pays to you because of the other driver's
negligence. You must have made a police report about the accident in
order to make a claim under an uninsured motorist policy.
Under-insured motorist coverage protects you if you are
involved in an accident that is not your fault and the other driver does
not have enough insurance to cover your loss. This coverage does not
pay for damage to your vehicle.
Towing and labor coverage pays the cost of towing your car to
the repair shop subject to the limit of your policy. Premiums for this
coverage are very inexpensive. However, if you are a member of an
auto club, you probably already have this service.
Rental reimbursement coverage usually pays the cost to rent a
car after an accident, subject to the policy's terms. The premium will
vary from insurer to insurer.
Rates
Things that affect your auto insurance rates, some controllable and
some not:
Gender and age: Men have more accidents on the road than
women; certain age groups tend to have more claims.
Type of vehicle: Luxury and sports cars average a higher
number of claims; also the more expensive a vehicle, the more
expensive it is to insure.
Driving record: Drivers with previous violations or accidents are
considered to be a higher risk.
Discounts: Auto insurers may offer premium discounts for
numerous reasons, including for people who have taken an
approved defensive driving course. Ask your agent what discounts
are available to you.
Amount of coverage: If you choose to carry coverage above
the mandatory minimum, your premiums will be higher.
Deductible amount: Choosing a higher deductible will reduce
the premiums of your car insurance. However, your out-of-pocket
expense will be higher if you have an accident.
Usage of vehicle: The more you drive, the higher the risk and
so the higher the premium.
Where you live: Urban areas have more claims than rural areas
and some areas have more frequent accidents than others.
Marital status: Claims history shows that married persons tend
to have fewer claims.
Ways To Save
Tips on lowering your auto insurance premiums:
Shop around and compare prices. A list of companies that
offer auto insurance in Delaware can be found online at
www.state.de.us/inscom. Or check the yellow pages.
Maintain a good driving record.
Take the highest deductible you can afford on collision and
comprehensive coverage. A higher deductible will mean lower
premiums. But remember that you will be responsible for the
deductible amount if you have an accident.
Take defensive driving. If all drivers of a vehicle complete an
approved course, you can receive 10 percent off a portion of your
auto insurance for three years. If you take a refresher course just
before the end of the three-year period, you can receive a 15
percent discount. A list of defensive driving courses is online at
www.state.de.us/inscom.
Before buying a vehicle, call an agent for a quote on the cost of
insuring it. Sports cars, luxury cars and more expensive cars cost
more to insure. (A quote is only an estimate of the premium.)
Review your policy periodically and update coverage
accordingly. As a car gets older and loses value, you may not need
as much insurance for it. With some cars, it may make sense to
only carry minimum coverage.
Ask whether there are discounts offered for:
Multiple cars on a policy
Good student drivers
Mature drivers
Airbags, anti-theft devices and other equipment
Accident-free record
Other insurance with same company
Repairs
After an accident, your vehicle may need to be repaired. Here are
some things you need to know:
Check your deductible. If the damage to your vehicle is
minor, it may be less than your deductible. For example, if your
bumper needs to be repaired and is estimated to cost $199, and
you have a $250 deductible, you will be responsible for the entire
amount. The insurance company will not owe you or the repair
shop anything until the cost goes over $250.
If you have a $250 deductible and the repair estimate is $350,
you would pay the first $250 and the insurance company would
pay the remaining $100.
The insurance company will assign an adjuster to estimate the
damage to the car and how much the company will pay to have it
fixed. Again, if the damage is determined to be less than your
deductible, you will be responsible for all of the repair amount.
The final choice of repair shop is yours. You may want to
use a repair shop the company chooses. However, if you choose a
different one, be aware you may have to pay the difference if your
body shop's estimate is higher than the insurance company's,
unless the increase can be justified and agreed upon by all
parties.
If you choose to put a brand new part on an older car
instead of a salvaged or remanufactured part, you may have to
pay the difference in cost.
Motorcycles
A motorcycle owner and driver is required to carry the same minimum
amounts of bodily injury protection, property damage and personal
injury protection as any other vehicle (please see "The Basics" at the
front of this guide for a description).
But insurance companies often suggest different policies for
motorcycles. Look for the following:
When inquiring about a policy, an agent may give you a quote
based on the minimum personal injury protection (PIP) limit of
$15,000, but with a $15,000 deductible. That means, unless
you deliberately choose otherwise and pay an additional premium,
you will essentially have no PIP coverage, as the coverage limit of
$15,000 will be reduced to zero by the deductible. Consider other
options which come at a higher premium but with lower
deductibles.
A motorcycle insurance policy may provide only limited
benefits. For example, a lower premium policy may provide
medical and lost wage benefits for only those accidents which
occur (a) on a highway and (b) when there is actual physical
contact with another vehicle. To receive coverage for a greater
range of potential accidents, you will likely have to pay higher
premiums. Ask your agent about the difference between
"restricted" PIP coverage and "unrestricted" PIP coverage.
Need Help?
The Delaware Insurance Commissioner's Office is here to help if you
have questions about or problems with your insurance coverage or
insurance company.
Questions about insurance or complaints about an insurance
company or insurance agent can be made to the Commissioner's
Consumer Services division by phone, by fax, by letter, by email or
with an online complaint form:
1-800-282-8611 toll-free in Delaware
or (302) 739-6775
(302) 739-6278 fax
841 Silver Lake Blvd.
Dover, DE 19904
consumer
www.state.de.us/inscom/complaint.shtml
If complaints to the Insurance Commissioner's Office do not provide a
suitable solution, you may take part in a formal process called
"arbitration." In arbitration, you file a formal complaint against a
company, somewhat like a lawsuit, but instead of a judge and jury,
the case is decided by a three-person panel made up of an attorney
and two insurance adjusters who have nothing to do with the case.
Arbitration is available only after several attempts to resolve the
matter informally have failed and will require a $30 filing fee. To get
more information about the arbitration process, call the Insurance
Commissioner's Office at (302) 739-4251 or go to www.state.de.us/
inscom/departments/consumer/consumerhp.shtml online.
More Online
Visit Insurance Commissioner Matthew Denn's website to find even
more information and tips about auto insurance:
www.state.de.us/inscom
Topics covered online include:
All of the auto insurance companies in Delaware
Adding teenage drivers to your auto insurance
Insuring a leased car
Where you can take a defensive driving course
What to do if your insurance is cancelled
Insurance when you rent a car
Insurance on a borrowed car
How to prevent and report insurance fraud
What To Do
If You're In
An Accident
Stop and keep calm. Do not drive away from an
accident. Do not argue with the other driver over the cause.
Call an ambulance, if needed. Do what you can to
provide first aid, but do not move an injured person unless you
possess medical or lifesaving expertise, or unless there is a
life-threatening event, such as a vehicle leaking gas.
Move your car. In a fender bender or other minor crash,
police advise that you move your car out of the street or
highway, to a clear area where it will not be a hazard to other
traffic. Police will be able to determine who was at fault from
descriptions and evidence.
Call the police. Dial 911 to notify the appropriate law
enforcement authorities. Fully cooperate with the officers
responding to the accident.
Gather information. Exchange insurance; driver's
license; registration information; witnesses' names, phone
numbers and addresses; brief description of how the accident
occurred. Take pictures of accident scene, if possible.
Call your insurance. Use the claims contact number on
your insurance card or call your insurance agent. This person
will go over your policy with you and will verify your coverage.
Get more tips and information
about auto insurance
from Insurance Commissioner Matthew Denn at
www.state.de.us/inscom