Delaware Car Insurance Regulations & Required Coverage

Delaware car insurance regulations require that all drivers maintain an up-to-date insurance policy for all registered vehicles, even if they are not actively being driven. Delaware auto insurance law requires motorists to comply with their tort law insurance system but is a bit unique as it’s one of the only states operating under tort insurance law to require PIP coverage.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Jul 16, 2021

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Delaware requires all of its drivers to maintain a current car insurance policy for all registered vehicles even if they are not actively being driven. They have stiff penalties for those caught without proper coverage and also have some unique requirements unique to the state that you should be aware of.

Delaware law requires motorists to comply with their tort law insurance system. Under a tort system, someone must always be held responsible for being at-fault or causing an accident after one occurs. The specifics vary from state to state, but the main result from this type of system is that the at fault part is financially responsible for covering damages resulting from the accident.

Required Coverage

All personal vehicles in Delaware require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage

Additionally, all policies must also include the following:

  • Personal Injury Protection (PIP)
Minimum Delaware Car Insurance Requirements
Bodily Injury Liability $15,000 / $30,000 Limit
Property Damage Liability $10,000 Limit
Personal Injury Protection $15,000 / $30,000 Limit

Delaware is a bit unique as it’s one of the only states operating under tort insurance law to require PIP coverage. This covers up to $15,000 for medical expenses and lost wages to any one person in a single accident and up to $30,000 to all people involved in a single accident with no more than $15,000 for each person. This also includes up to $5,000 for funeral expenses.

Additional insurance coverage can include:

  • Uninsured / Underinsured Coverage
  • Comprehensive and Collision Coverage
  • Towing and Labor Coverage
  • Rental Reimbursement Coverage

Uninsured or underinsured coverage will pay for expenses incurred by being in an accident with another driver who is not insured or does not have enough insurance to pay for the related costs. Even though it’s illegal to drive in Delaware without car insurance, there are still people that do and if the driver is insured, they still may not have enough coverage to pay for all damages.

Comprehensive coverage pays for the cost of repairing your vehicle after a non-collision related incident such as hail or fire damage. Collision will pay for repair and replacement costs for your vehicle for accidents. If your vehicle is on the list of most stolen vehicles in Delaware, you should strongly consider having this coverage.

Towing and labor will cover expenses related to towing your car if you need roadside assistance or after an accident.

Rental reimbursement coverage pays the cost to rent a temporary vehicle or for other transportation costs if your primary vehicle is being repaired or in the process of being replaced.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID Card
  • Insurance Policy

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer
  • If being audited by the DMV
  • After an accident
  • Anytime you are operating a vehicle

Failure to Maintain Financial Responsibility Penalties

If you cancel your insurance coverage and do not notify the DMV of new coverage, you can face the following penalties:

  • Fines of up to $1,500 for a first offense and $3,000 for additional offenses within 3 years of a previous offense
  • Your driver’s license will be suspended for 6 months

Delaware Insurance Agents

Wilmington Car Insurance | Dover Car Insurance | Newark Car Insurance | Bear Car Insurance | Odessa Car Insurance | Rehoboth Beach Car Insurance

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