Insurance Center

Accidents do happen and that is why Delaware's Division of Motor Vehicles (DMV) requires all Delaware drivers to carry auto liability insurance on their vehicles.

When you are in an automobile accident there can be emotional and physical injuries; it is nice to avoid financial hardships resulting from uninsured vehicles.

If you don't own a car and drive someone else's, check the glove box for an insurance identification card. True, the registration process can't be completed without proof of insurance, but still you must be certain the vehicle you are driving is properly insured.

Minimum Requirements

You must carry the minimum auto liability insurance on your vehicle before you are allowed to inspect, title, and register it in Delaware.

Make an appointment with a Delaware licensed insurance company to help you better understand your insurance responsibilities.

The Delaware DMV has set minimum insurance levels:

• $10,000 for property damage

• $15,000 for personal injury or death to one person

• $30,000 for personal injury or death to more than one person

Your insurance identification card is the proof you need when inspecting, titling, and registering your vehicle. You are also required to keep the card in your car at all times. Should you be in an accident, share the insurance card information with the other party and any police officers responding to the scene.

You can use an insurance policy binder or original policy to register your vehicle if your insurance identification card hasn't arrived yet. To qualify as proof, the binder must be 30 days new―an old binder dated back 60 days or more will not work.

Enforcement

The DMV keeps close tabs on all insurance transactions. Let's say you drop the insurance for nonpayment or just outright cancel it, the DMV will get a notice from your insurance provider.

In addition to the direct communications between the DMV and your insurance company, the DMV audits all active registrations for insurance compliance. Insurance is verified on randomly selected vehicle registrations.

Penalty

What is the penalty for operating a motor vehicle without the proper insurance? The fines begin at $100 and increase quickly. You may find yourself paying out $1,500 for a first offense and then $3,000 if you get caught a second time.

The DMV can issue you other penalties, too. For example, your driver's license can be suspended for six months making it hard for you to get to school or work. Your vehicle registration may be suspended too, meaning your car isn't registered for the road at all whether you or another driver want to use it.

Turning in Tags

You might plan to take your car off the road for a period of time or even indefinitely. Perhaps you are injured and won't be driving for a while, or maybe your family is going to share a vehicle making yours unnecessary.

Canceling your insurance is okay to do if you don't want to maintain a valid registration. To let the DMV know what you are trying to do, mail in your license plate or tags:

• Division of Motor Vehicles

• Uninsured Motorist Section

• P.O. Box 698

• Dover, DE 19903

You can also drop off your tags at any DMV Office. Sometimes they will hold your tags for reinstatement if you are just going through a temporary lapse in insurance.

Remember

In recent years the premiums on insurance have increased. However, when you consider the penalties for violating the Delaware Vehicle Code Insurance Requirements and the financial implications of an uninsured accident, it makes good sense to buy the insurance.

Many carriers even have payment plans that let you spread the premium out over the entire year; electronic payment is also a great way to make the insurance premium part of your regular budget. If you have problems getting insurance, contact the Consumer Services Division at the DMV.