Delaware Auto Insurance Laws
Auto Insurance Laws and Trends in DE
The state of Delaware follows the tort system of auto insurance. In the event of a motor vehicle accident, the party who is deemed to be at fault will be responsible to pay for any damages or injuries sustained by the victim(s). The required minimum limits in Delaware are:
- Bodily Injury: $15,000 per person, $30,000 per accident
- Property Damage: $10,000 per accident
- Person Injury Protection: $15,000 per person, $30,000 per accident
Drivers can also choose to purchase optional insurance coverage such as collision, comprehensive, and under/uninsured motorist coverage.
Auto insurance premiums and trends in Delaware
Delaware has the 8th highest auto insurance premiums in the country, averaging about $1,022 per year. This state also has the least number of vehicles insured (600,000).
By law, all insurance companies in Delaware must notify the DMV of every new policy, as well as notify the DMV when a policy has been cancelled or has lapsed. Periodically, the DMV will tally out random audits to ensure that vehicle owners are complying with all laws and regulations. If not, they face fines of $100 to $1,500, as well as suspension of all driving privileges.
DE auto insurance fraud
Auto insurance fraud is one of the most prominent vehicle crimes to date. Many types of fraud seem to be socially acceptable, such as stating that an adult is the primary driver when in reality, the primary driver is underage. This is done to save money on the insurance premium, and although it seems harmless, it is illegal. The Delaware government has implemented harsh changes to help combat this crime and deter possible offenders. Some of the changes that have bee added are:
- All hearings regarding auto insurance fraud are to now take place in public.
- All fines for auto insurance fraud have been doubled in monetary amount.
- All cases of auto insurance fraud will be referred to the Crown Prosecutor for criminal prosecution, not just a misdemeanour.