Every state has its own set of rules for automobile coverage, and Delaware is no exception. At the very least, every vehicle must have liability insurance and personal injury protection (PIP). The limits for liability in Delaware are 15/30/10, with no requirement for uninsured motorists' coverage. Like most states, Delaware is not a no fault state, so insurance companies are free to collect damages from the other driver's insurance company if they are the one at fault.

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Coverage and qualifications for coverage will vary from insurer to insurer, but one prominent problem that exists in Delaware and in many other states is the fact that the insurance underwriters can use the information in your credit report in order to determine how much they will charge you, or if they will even insure you.

As unfair as it seems, underwriters from some of the major insurance carriers managed to collect enough information to convince the federal government that there is enough documentation to support their theory that people with poor credit file more claims than those with good credit. The current insurance commissioner had used this as part of his election platform, and was to make this illegal in Delaware, but it has not yet been done.

Delaware is a state of many subdivisions, especially in New Castle County, and some of the insurance carries use these as rating factors. Unfortunately, the method of rating based on where you live is not one of accuracy as at least one major carrier limits it to nothing more than a zip code.

The problem with that system is that there are many areas in that state where one zip code covers an entire city, and that in itself may entail a large population. Up until about ten or eleven years ago, the city of Newark had only two zip codes, 19711 and 19702, even though the area is huge and is a university town. Today there has been little improvement with only two more zip codes in existence, 19713 and 19701, though on occasion some very small areas use 19714.

Most insurance companies in Delaware also offer multi-car discounts, good student discounts, defensive driving discounts for liability, and good driver discounts for those who have gone over three years without an accident that was their fault. Rates for married people are lower, and those under 25 who are married or have children pay a lower premium than singles under 25 with no children.

Unlike the past when you had to pay your premium every six months, many companies in Delaware offer monthly payment plans that make it easier for policyholders to make their payments on auto insurance. Since it is required under the law, it prevents many people from having to turn in the tags to their cars because they let their insurance lapse.

Because liability auto insurance is a requirement, insurance companies are supposed to notify the Department of Motor Vehicles of any policies that lapse. Whether this is followed precisely remains to be seen because personal observation has shown that it doesn't happen. Whether it's negligence on the part of the insurance company or the DMV is unclear.

 

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