Auto Insurance Requirements in Delaware

The Delaware Motor Vehicle Safety–Responsibility Law requires any vehicle used on public roads to be insured with liability coverage.

Liability insurance pays for costs associated with an accident you cause when there's injury or damage to others or property. The minimum liability coverage requirements are $25,000 per person and $50,000 per accident for any bodily injury sustained and $10,000 for property damage.

All drivers must also carry personal injury protection (PIP) insurance. When an accident happens, this coverage pays for your (or your passengers') medical costs and lost wages — no matter who caused the accident — but not for pain and suffering. The minimum PIP coverage requirements are $15,000 for one person and $30,000 for all people injured in the accident.

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In Delaware, if a law enforcement officer stops you for any reason, you may be asked to show valid proof of insurance on your vehicle (in paper form or electronically) in addition to your driver's license and registration. Besides inspecting your proof of insurance when you're stopped, the Delaware Division of Motor Vehicles randomly audits at least 10% of all registered vehicles, multiple times each year, at which point they'd request that you show proof of insurance. Immediately contact your auto insurance company and ask them to submit form FR-19 if this happens. It certifies that you've been continuously insured and that your coverage is currently in force.

Delaware car insurance minimum requirements

The following are the coverages and minimum amounts required by Delaware law.

Bodily injury (BI): Bodily injury liability coverage kicks in when you cause an accident in which other people are hurt. In Delaware, the minimum bodily injury coverage is 25/50. That's insurance shorthand for saying your insurance company will pay up to $25,000 for injuries to one person involved in a single accident and up to $50,000 for all of the people in a single accident. Though state law requires a minimum of 25/50, it's not uncommon for an insurer to write this coverage for up to 100/300 — $100,000 coverage for one person and $300,000 total per accident.

Property damage (PD): This coverage is similar to BI, in that it's activated when you cause an accident and have to pay for damage to someone else's property. Let's say you see a deer and in the process of avoiding a collision with the animal, you drive smack into a car parked on the street. PD covers damage to other vehicles as well as other property, such as a light pole you ran into or a homeowner's fence you crashed through. The minimum requirement here is $10,000, which is the maximum property damage you are covered for per accident.

Personal injury protection (PIP): When you or a family member is injured in an accident you're involved in, PIP coverage pays for those injuries, regardless of fault, up to your purchased limits. The minimum coverage requirement in Delaware is $25,000 for one person and up to $50,000 for all individuals involved in a single accident.

Delaware is one of the "add-on" states, which means that PIP is required, but your right to sue the driver at fault is not limited by any monetary or injury-severity thresholds (which is the case in no-fault states). PIP insurance can cover your lost income, along with any medical expenses not covered by your DE health insurance policy, depending on the insurance contract.

Cheapest companies in Delaware for minimum liability

State Farm

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State Farm

Travelers

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Travelers

Geico

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Geico

Optional insurance coverages in Delaware

The following coverages aren't mandatory. If you decide to include them, they'll add to your Delaware insurance premiums. However, you'll find they're recommended by government bodies and consumer advocates, because they reduce your risk of having to come up with out-of-pocket money.

Uninsured and underinsured motorist coverage: Under the Delaware Motorists Protection Act, the state requires licensed automobile insurance companies to offer uninsured/underinsured motorist coverage to everyone purchasing insurance. What happens when you're injured in an accident, but the driver of the other vehicle has no insurance? According to the most recent data, an estimated 8.5% of Delaware drivers are uninsured. This coverage comes in two parts: bodily injury and property damage.

With uninsured/underinsured motorist bodily injury (UIMBI) coverage, your policy is activated if the other party is at fault but doesn't carry insurance or doesn't carry enough to cover your expenses. UIMBI will be offered at a minimum of 15/30 but can be bought for up to $100,000 per person and $300,000 per accident.

Uninsured/underinsured motorist property damage (UIMPD) covers you for any damage to your vehicle or home caused by someone who is uninsured or underinsured. This coverage is offered at $10,000 and comes with an automatic deductible of $250.

Collision coverage: One of two physical damage coverages, collision pays for damage to your vehicle from a collision with another moving object — usually another vehicle.

Comprehensive coverage: Did a branch fall off a tree and break your rear window? Did a deer damage the front of your car? Did someone steal items from your car? These are some examples of why you may want comprehensive coverage, which pays for damages not covered by collision insurance.

Alternative proof of financial responsibility

A written certificate stating your vehicle carries a liability policy can serve as proof of financial responsibility (just check that the policy's effective date and the certificate's date match). Other than an insurance policy, Delaware will also grant your registration if you have one of the following:

Surety bond: To serve as proof of liability insurance, there are two kinds of bonds that Delaware will accept. The first is a bond from a surety company authorized to do business in the First State. The second is a bond with signatures of at least two individuals, each owning real estate in Delaware and with total equities at least double the value of the bond amount. The real estate must be approved by a judge of a court of record. The bond is filed with the state treasurer.

Money or securities: You can deposit $40,000 in cash, in securities or from a trust fund with a market value of $40,000 or higher with the state treasurer. After you deposit it, to obtain the certificate, you must also prove that there are no unsatisfied judgments against you in the county where you live.