Delaware Car Insurance Guide

Most state auto insurance laws are similar, but since some differences always exist, you need to familiarize yourself with your own state’s regulations.

Delaware Car Insurance Laws

The First state requires minimum liability insurance levels of $15,000 bodily injury, $30,000 per accident, and $10,000 property damage. These requirements are in effect for as long as your car is registered to you in the state of Delaware, regardless of whether you are driving it or it is just sitting in a garage. Although comprehensive and collision insurance are not required by law, your lender or leaseholder may require you to have these coverages. You might want to consider that hospital costs can be quite expensive, and many popular new vehicles cost over $30,000, so it might be a good idea to buy more than the minimum coverage required.

The insurance industry recommends purchasing minimum liability coverage of 100/300/50. This coverage would mean that, for one auto accident, your insurance company would pay $100,000 per person for bodily injuries; $300,000 in total bodily injuries; and $50,000 in property damage.

Comprehensive and Collision

Comprehensive insurance pays claims for non-auto-accident-related damage to your vehicle like broken windshields. Collision insurance pays for damages to your vehicle, regardless of which driver is at fault in an accident. For instance, if the other driver is at fault, but his insurance coverage is insufficient to pay the entire amount needed to cover your car repairs, your collision insurance coverage will pay the remaining amount (after your deductible has been paid).

Uninsured/Underinsured

Liability insurance is required in 45 states, but 17 percent of drivers in the U.S. do not have it, and some of those who do have it, do not have enough coverage. Because of this, many states require that you also obtain uninsured/underinsured motorist coverage in order to protect you in case your car is damaged by one of these drivers.

Medical Payments (aka MedPay)

MedPay is designed to cover medical bills and lost wages for you and your passengers, regardless of which driver is at fault. If you already have health insurance through your employer, you may decide not to get this coverage.

Rental Reimbursement

Rental reimbursement sounds good, but it might be a better plan to set aside the money you would have paid towards this insurance, and put it in an emergency account instead. You can earn interest on it, and then, if you ever need it, it will be there. Besides, if the accident is not your fault, the other driver’s insurance company usually pays the cost of your rental car.

Gap Insurance

Gap insurance was designed to close the gap between what a car is worth and how much you still owe on it. If you own your car free and clear, you won’t need this insurance, but if you still owe, you should give it some thought.