Why Is Delaware Car Insurance So Expensive?

By: Woop Blog Group
Tuesday, October 25, 2022

Why is Delaware car insurance so expensive?

Delaware: the first state to ratify the constitution, known for its beaches, NASCAR races, and to the delight of consumers everywhere, its lack of a state sales tax. It’s also known as being one of 12 “no-fault” states ,and unlike Pennsylvania or New Jersey, Delaware has no laws limiting drivers from seeking non-economic damages in the event of an accident. If I haven’t lost you yet and you are willing to stick with me, Delaware-specific auto insurance is really quite interesting, I promise!

The first thing that sets Delaware apart from the majority of states in the US is the fact that it is a “no-fault” state, which simply means that when you are involved in an accident, your insurance policy will include coverages for things like medical expenses to you and you passengers, no matter who is at fault. This is different from more conventional states, where the “at fault” party’s insurer covers the covered loss. At times, this can lead to nagging disputes between insurance companies over who was at fault, drawling out the claim’s payment process. Delaware is able to avoid this type of dispute with a specific coverage called “Personal Injury Protection” (PIP). PIP pays for things like medical expenses when you or your passengers are injured in an accident. Even if you are not at fault, your insurance provider will pay, ensuring that you don’t have to dispute fault with the other party to get coverage. This means faster payouts, fewer roadblocks, and generally a better experience for all parties involved.

The most interesting thing about Delaware-specific auto insurance, however, is the fact that there is no limit on pain and suffering damages. In contrast, states like Pennsylvania and New Jersey have something called “limited tort” or “verbal threshold”, which limit an individual’s ability to seek non-economic damages like pain and suffering after an accident. In these states, if you want the freedom to seek these kinds of damages, you must pay for it. Known on an insurance policy as “full tort” or “zero threshold”, this coverage is available, but at a significant increase on the total premium. In Delaware however, all drivers have the equivalent of full tort / zero threshold, which allows for an extraordinary amount of freedom when compared to the states that limit these lawsuits.

Most no-fault states put limits on when you can sue, making Delaware one of a kind. With that being said, Delaware is also one of the more expensive states to buy auto insurance, so you kind of get what you pay for.  Considering Delaware is such an expensive state to buy auto insurance, it is a huge advantage to be able to compare rates from multiple insurance companies to make sure you are getting the best deal.

When you request car insurance quotes from us either by filling out our application, or simply connecting your current policy documents, we are able to shop across multiple insurers for you and provide you with immediate car insurance quotes. Then we’ll provide you with options depending on your specific coverage needs. You can even do a side-by-side comparison with your current policy to get a better understanding of any differences between the policies before you buy. Basically, we’re car insurance made easy!