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Delaware Car Insurance Rules and Regulations

Delaware car insurance rules and regulations are put into place by state lawmakers to govern the way auto insurers frame the policies they sell to drivers. These regulations stipulate minimum standards for auto insurance in the state. Delaware requires auto insurance liability protection for all vehicle owners. Beyond liability, there are quite a few options for drivers to choose from to enhance their policies and increase their value. Understanding the rules and regulations pertaining to vehicle insurance in Delaware as well as the additional options for coverage can help us as drivers in the state to make wise choices on our auto policies. This article briefly lists the auto insurance requirements for motorists in the state of DE and summarizes some of the options policy holders have for coverage to add to their policies.

Minimum Auto Liability Insurance Requirements

Liability auto insurance is required for every motorist in the state of Delaware. Liability insurance protects auto owners from having to personally pay for the financial expenses related to at fault accidents, including the medical and property damages costs incurred by other drivers and passengers. Liability expenses are assigned to the at fault driver in an accident. If you are involved in an accident and are deemed negligent for the collision, a good liability policy can save you from significant and possibly even crippling out of pocket expenses. It is important to carry auto liability coverage to protect yourself from these expenses.

But even without the economic motivation, the legal requirements in the state are reason enough for Delaware drivers to carry liability coverage. The state of Delaware does require motorists to carry liability coverage. All vehicles registered with the state are required to maintain adequate vehicle insurance protection according to the standards set forth by the state legislature. Liability protection in state is of the split limit variety. Split limit auto insurance has three parts, two of them for bodily injury and the third for property damage liability. Each of the parts of a split limit policy has its own limit and its own deductible.

The minimum limits for coverage acceptable for drivers in the state are determined by the legislature. Currently the minimum limits for auto liability insurance are set at $15,000/$30,000/$10,000. The first number is the limit for per person bodily injury, the second for per accident liability, and the third for per accident property damage liability protection. In addition, every driver in the state is required to keep proof of insurance with them in their vehicles at all times. They must be ready to produce them at the behest of a law enforcement officer after an accident or traffic stop [1].

Consequences for DE Insurance Violations

There are consequences for drivers who fail to comply with the legal requirements for auto liability insurance in the state of Delaware. Those who are caught driving without insurance are subject to a $1,500 fine for the first offense. Subsequent insurance violations bring a $3,000 fine and a six month license suspension. To promote compliance, the state DMV performs audits on motorists in the state. This is another way a non compliant driver could get caught driving without insurance other than during a traffic stop or after an accident. To avoid trouble with driving a vehicle after insurance coverage has been allowed to lapse, drivers may surrender their plates to a DMV branch; and these tags can be returned to the vehicle owner at no additional charge once insurance is reinstated as long as the original registration is not yet expired.

Optional Insurance Endorsements in Delaware

Liability insurance is required for all drivers in the state. But there are other optional endorsements motorists might consider as well. Collision and comprehensive insurance are the other two main areas of coverage in a full coverage policy aside from liability protection. Some drivers may be compelled to include collision and comprehensive even though they are not required by state law. Motorists who lease or finance their vehicles are typically required to carry full coverage according to the demands of lien holders. Collision insurance takes care of property losses to the covered vehicle in auto accident circumstances. Comprehensive handles all other covered property loss claims, including deer hits, damage from fallen trees, storms, and auto break in and theft.

Drivers in Delaware are wise to consider all available areas of coverage and select coverage according to their protection priorities and the limitations of their budget. Liability insurance is the most logical starting point because it is legally required. A good liability policy can save a lot of headache in civil lawsuits as well. Additional coverage scaffolds an insurance policy by strengthening and widening its scope of protection. Select appropriate coverage to suit you and your budget.

[1] Retrieved 2010-05-14.


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