Image via Flickr by Dougtone
Car insurance is an unavoidable expense when you own a car and want to follow the law when you go on the road. Each state has a bare minimum insurance requirement designed to protect you and others on the road in the event of an accident. Several factors determine how much you pay for car insurance, including the company from which you purchase your coverage. Let’s see what cheap auto insurance Delaware has available.
What Are the Types of Automobile Insurance?
There are four main types of coverage for automobile insurance: liability, uninsured/underinsured, comprehensive, and collision. Each type of coverage pays for expenses related to specific aspects of what can happen in a car accident. Knowing what kind of coverage you need and want can help you determine how much you’re willing to pay for coverage.
Liability coverage pays for damages to the other driver’s vehicle and injuries to others involved in the accident when you’re at fault. Two types of liability coverage include bodily injury and property damage liability. Bodily injury liability pays for any medical expenses associated with others who were involved in the accident. Property damage liability covers damage to the other driver’s vehicle and public or private property. Every state has its own minimum liability requirement, so talk to your insurance agent to ensure that you meet the bare minimum coverage.
Uninsured/underinsured motorist coverage protects you from drivers who don’t have adequate car insurance coverage. While it’s legally required to carry liability insurance as a minimum, some drivers don’t feel the need to do so, leaving you in a bad spot if they cause an accident involving you and your vehicle. Uninsured motorist coverage would step up to cover medical expenses and sometimes even your property damage when you’re involved with a driver carrying zero insurance coverage.
Likewise, the underinsured portion bridges the gap between the other driver’s inadequate coverage and your actual medical expenses, protecting you from having to foot the bill. For example, if the other driver has $25,000 bodily injury liability coverage, but your medical bills are $32,000, your insurance company would pay for the additional $7,000 that isn’t covered as long as it’s within your limits.
Comprehensive coverage is optional insurance unless your lending institution or leasing company requires you to carry it to protect their investment. Comprehensive insurance covers any damages caused by theft, vandalism, or natural disasters, such as fire, hail, or tornadoes. With a comprehensive policy, you’ll select a deductible you’re willing and able to pay out-of-pocket toward your vehicle expenses. This deductible can lower your insurance rate if you choose a high out-of-pocket amount; however, you’ll need to come up with the deductible to make up the difference in coverage if you need to utilize your comprehensive coverage.
Another optional insurance coverage is collision coverage. Your lending institution or leasing company may also require you to carry collision insurance. Collision coverage will help pay for damages to your vehicle and property if you hit another vehicle or object, such as a light post or dumpster. You also get to select a deductible for your collision coverage, which affects your premium.
Less Common Coverages
Additional insurance coverage includes personal injury protection (PIP) and medical payments, sometimes called MedPay. These types of coverage can either be required by your state, available in your state, or unavailable to you. PIP will cover your medical bills if you’ve been involved in an accident. It can also be applied to lost income and travel expenses for appointments. You can use medical payment coverage for medical costs, such as surgery, hospital stays, or X-rays. In Delaware, PIP is required and MedPay is available.
What Is the Minimum Automobile Liability Insurance Coverage in Delaware?
The Delaware Division of Motor Vehicles has set minimum liability limits for every driver in order to legally drive on the road. These minimum limits are:
- Bodily injury liability of $25,000 per person or $50,000 per accident
- Property damage liability of $10,000 per accident
Delaware also requires drivers to carry a minimum of $15,000 per person of PIP insurance with a maximum of $30,000 per accident.
What Are the Penalties for Driving Without Adequate Insurance in Delaware?
All drivers are required to carry proof of insurance on them at all times in the state of Delaware. Failure to do so may result in having penalties assessed for driving without adequate insurance coverage. These penalties include:
- First offense: Fines of $1,500 to $2,000 and a suspension of the driver’s license for six months. In addition, the driver must provide proof of insurance to reinstate their license.
- Subsequent offenses: For offenses occurring within three years, fines are $3,000 to $4,000 with a six-month suspension of driver’s license and proof of insurance required to reinstate.
Where Can You Find Cheap Auto Insurance in Delaware?
The cost of auto insurance can vary amongst car insurance companies from hundreds to thousands of dollars. You’ll want to determine the type of coverage you need and want, then spend some time researching and shopping around to get the best coverage for your dollar. According to U.S. News & World Report, the average cost of car insurance in Delaware is $1,490 per year. Many factors can affect your insurance premiums, including your age, driving history, accident history, credit score, location, and vehicle type. While you can’t control some of these factors, you can still get cheap auto insurance in Delaware.
You can find the cheapest auto insurance rates in Delaware at:
- USAA: $1,008
- Travelers: $1,134
- GEICO: $1,260
- Progressive: $1,356
- State Farm: $1,383
- Nationwide: $1,651
- Allstate: $2,637
These quotes are for the same driver, same vehicle, and same driving history, so you can see how much the company you choose can affect your rates. If you’re interested in carrying full coverage, or high coverage car insurance, you may find that it’s just a few dollars more but adds an extra layer of protection you prefer. Cheap high coverage auto insurance in Delaware includes:
- USAA: $1,108
- Travelers: $1,129
- GEICO: $1,384
- Progressive: $1,469
- State Farm: $1,495
- Nationwide: $1,647
- Allstate: $2,788
Whether you’re purchasing your very first insurance policy or looking to renew or update your current one, you can see how much difference the company you select can make. You may also consider talking to your agent about increasing your limits, as this is another way to protect yourself and your assets for just a little more on your insurance premium each year.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.