Call it "Everything You Ever Wanted To Know About Auto Insurance But Were Afraid To Ask." Since I took office in January 2005, Delawareans have told me what they needed was a simple and concise guide to purchasing insurance for cars, trucks and motorcycles. And so, here it is.

Please feel free to call on me and my office anytime at 1-800-282-8611 with any questions, issues or problems you have regarding insurance in Delaware.

1. Bodily Injury Protection - $15,000/$30,000

If you are responsible for the injury or death of another person and have minimum coverage, your insurance company will pay:

Up to $15,000 to one person involved in a single accident

Up to $30,000 to all people involved in a single accident, with no more than $15,000 to any one person

2. Property Damage - $10,000

If you are responsible for damages to another person's property and have minimum coverage, your insurance company will pay:

Up to $10,000 to a person involved in a single accident

3. Personal Injury Protection (PIP) - $15,000/$30,000

Whether you are responsible for the accident or not, your insurance company will pay for the medical expenses and loss of wages for you and your passengers. If you have minimum coverage, your company will pay:

Up to $15,000 to any one person involved in a single accident

Up to $30,000 to all people involved in a single accident, with no more than $15,000 to any one person

Also included in PIP coverage is up to $5,000 for funeral expenses.

The minimum amounts in these three categories are relatively low and you may wish to purchase additional coverage to protect yourself from possible claims in higher amounts. Keep in mind, however, that as you raise your coverage, your premiums will increase.

Don't Drive Uninsured: Uninsured drivers are against the law and cost other drivers money in higher insurance premiums. Registered vehicles are randomly checked for coverage and insurance companies will notify the state if coverage is dropped. Driving without insurance can cost you a fine, your license plate or your driver's license.

These types of coverage are not required by law in Delaware. However, if you take out an auto loan, your bank or lender will likely require collision and comprehensive coverage.

Collision coverage pays for physical damage to your car as the result of your vehicle colliding with an object, such as a tree or another car. This coverage is based on the value of your vehicle and can be costly.

Important information about collision coverage: Auto insurance policies only require the company to cover your financial losses, not to replace your vehicle. In the case of an accident involving an older car, the cost of repairing it can quickly exceed the value of the car and your insurance carrier will pay you what the car was worth rather than fix it. In severe cases, the value of the car may be less than premiums paid for the coverage. Therefore, if your vehicle is worth less than $2,000, there is little reason for you to purchase collision coverage, because you are likely to pay more money in premiums than you would ever receive as a result of your claim. This coverage may not pay the full replacement cost of the vehicle or may not satisfy the balance of your auto loan.

Comprehensive coverage pays for damage to your car from almost all other causes besides an accident, including fire, severe weather, vandalism, flood and theft. Comprehensive coverage also will cover broken glass, such as windshield damage.

Uninsured motorist coverage pays if you incur losses from a driver who does not have auto insurance or a hit-and-run driver. This coverage, when in effect, takes the place of the insurance that the other driver should have had but did not. The coverage comes at an automatic $250 deductible for property damage, regardless of the deductible you may have on your other coverage.

Uninsured motorist coverage will have policy limits. It does not protect the other driver. Your insurance company may sue the other driver for any money the company pays to you because of the other driver’s negligence. You must have made a police report about the accident in order to make a claim under an uninsured motorist policy.

Under-insured motorist coverage protects you if you are involved in an accident that is not your fault and the other driver does not have enough insurance to cover your loss. This coverage does not pay for damage to your vehicle.

Towing and labor coverage pays the cost of towing your car to the repair shop subject to the limit of your policy. Premiums for this coverage are very inexpensive. However, if you are a member of an auto club, you probably already have this service.

Rental reimbursement coverage usually pays the cost to rent a car after an accident, subject to the policy's terms. The premium will vary from insurer to insurer.

Things that affect your auto insurance rates, some controllable and some not:

Gender and age: Men have more accidents on the road than women; certain age groups tend to have more claims.

Type of vehicle: Luxury and sports cars average a higher number of claims; also the more expensive a vehicle, the more expensive it is to insure.

Driving record: Drivers with previous violations or accidents are considered to be a higher risk.

Discounts: Auto insurers may offer premium discounts for numerous reasons, including for people who have taken an approved defensive driving course. Ask your agent what discounts are available to you.

Amount of coverage: If you choose to carry coverage above the mandatory minimum, your premiums will be higher.

Deductible amount: Choosing a higher deductible will reduce the premiums of your car insurance. However, your out-of-pocket expense will be higher if you have an accident.

Usage of vehicle: The more you drive, the higher the risk and so the higher the premium.

Where you live: Urban areas have more claims than rural areas and some areas have more frequent accidents than others.

Marital status: Claims history shows that married persons tend to have fewer claims.

Shop around and compare prices. A list of companies can be found in the yellow pages.

Maintain a good driving record.

Take the highest deductible you can afford on collision and comprehensive coverage. A higher deductible will mean lower premiums. But remember that you will be responsible for the deductible amount if you have an accident.

Take defensive driving. If all drivers of a vehicle complete an approved course, you can receive 10 percent off a portion of your auto insurance for three years. If you take a refresher course just before the end of the three-year period, you can receive a 15 percent discount. A list of defensive driving courses can be found here.

Before buying a vehicle, call an agent for a quote on the cost of insuring it. Sports cars, luxury cars and more expensive cars cost more to insure. (A quote is only an estimate of the premium.)

Review your policy periodically and update coverage accordingly. As a car gets older and loses value, you may not need as much insurance for it. With some cars, it may make sense to only carry minimum coverage.             

Ask whether there are discounts offered for:

Multiple cars on a policy
Good student drivers
Mature drivers
Airbags, anti-theft devices and other equipment
Accident-free record
Other insurance with same company

After an accident, your vehicle may need to be repaired. Here are some things you need to know:

Check your deductible.  If the damage to your vehicle is minor, it may be less than your deductible. For example, if your bumper needs to be repaired and is estimated to cost $199, and you have a $250 deductible, you will be responsible for the entire amount. The insurance company will not owe you or the repair shop anything until the cost goes over $250. If you have a $250 deductible and the repair estimate is $350, you would pay the first $250 and the insurance company would pay the remaining $100.

The insurance company will assign an adjuster to estimate the damage to the car and how much the company will pay to have it fixed. Again, if the damage is determined to be less than your deductible, you will be responsible for all of the repair amount.

The final choice of repair shop is yours. You may want to use a repair shop the company chooses. However, if you choose a different one, be aware you may have to pay the difference if your body shop’s estimate is higher than the insurance company’s, unless the increase can be justified and agreed upon by all parties.

If you choose to put a brand new part on an older car instead of a salvaged or remanufactured part, you may have to pay the difference in cost.

But insurance companies often suggest different policies for motorcycles. Look for the following:

When inquiring about a policy, an agent may give you a quote based on the minimum personal injury protection (PIP) limit of $15,000, but with a $15,000 deductible. That means, unless you deliberately choose otherwise and pay an additional premium, you will essentially have no PIP coverage, as the coverage limit of $15,000 will be reduced to zero by the deductible. Consider other options which come at a higher premium but with lower deductibles.

A motorcycle insurance policy may provide only limited benefits. For example, a lower premium policy may provide medical and lost wage benefits for only those accidents which occur (a) on a highway and (b) when there is actual physical contact with another vehicle. To receive coverage for a greater range of potential accidents, you will likely have to pay higher premiums.  Ask your agent about the difference between “restricted” PIP coverage and "unrestricted" PIP coverage.

Questions about insurance or complaints about an insurance company or insurance agent can be made to the Commissioner's Consumer Services division by phone, by fax, by letter, by email or with an online complaint form:

Call 1-800-282-8611 toll-free in Delaware or (302) 674-7310

Fax a complaint to (302) 739-6278

Mail to 841 Silver Lake Blvd. Dover, DE 19904

Email to consumer@deins.state.de.us

Use the online complaint form

Click here for a list of automobile insurance companies and their contact information. These are the ones in compliance with the changes made in Regulation 608.

If complaints to the Insurance Commissioner's Office do not provide a suitable solution, you may take part in a formal process called "arbitration." In arbitration, you file a formal complaint against a company, somewhat like a lawsuit, but instead of a judge and jury, the case is decided by a three-person panel made up of an attorney and two insurance adjusters who have nothing to do with the case.

Arbitration is available only after several attempts to resolve the matter informally have failed and will require a $30 filing fee for auto insurance matters. To get more information about the arbitration process, call the Insurance Commissioner's Office at (302) 674-7310 or click here.

Stop and keep calm. Do not drive away from an accident. Do not argue with the other driver over the cause.

Call an ambulance, if needed. Do what you can to provide first aid, but do not move an injured person unless you possess medical or lifesaving expertise, or unless there is a life-threatening event, such as a vehicle leaking gas.

Move your car. In a fender bender or other minor crash, police advise that you move your car out of the street or highway, to a clear area where it will not be a hazard to other traffic. Police will be able to determine who was at fault from descriptions and evidence.

Call the police. Dial 911 to notify the appropriate law enforcement authorities. Fully cooperate with the officers responding to the accident.

Gather information. Exchange insurance; driver's license; registration information; witnesses’ names, phone numbers and addresses; brief description of how the accident occurred. Take pictures of accident scene, if possible.

Call your insurance. Use the claims contact number on your insurance card or call your insurance agent. This person will go over your policy with you and will verify your coverage.

The following are the top 10 companies that provide auto insurance in Delaware. Together they account for 86 percent of the auto insurance sold in the state. They are listed with the name and market share in Delaware. You can find local agents for these companies in the yellow pages of your phone book. 

What should I do when I add a teenage driver to my auto insurance?

Insuring a teenage driver is an additional cost for many parents. Most insurance companies consider drivers under the age of 25 to be a higher risk, which translates into higher premiums.

Contact your insurance agent or company to inquire about when to add your teenager. Some companies require the teenager to be added the day he or she receives a restricted license or learner’s permit. Other companies do not require the addition until the teenager obtains a full or unrestricted license.

If you can afford it, it may make financial sense to purchase a car for your teenager. For example, if you own a new and expensive sports car, letting your teenager drive it may raise your premium considerably. A modest economy car with minimum coverage may end up costing you less.

Remember that taking a driver’s education course, earning good grades in order to receive a “good student” discount and maintaining a driving record with no tickets or accidents are the ways to minimize the insurance premium for a teenaged driver.

How do I insure a leased car?

If you lease a car, you still need auto insurance. You must carry the minimum requirements for the state and the auto dealer or bank will also likely require collision and comprehensive coverage.

You may also be offered – or required – to purchase “gap” insurance. Gap insurance would cover you if you have an accident, the car you are leasing is totaled and there is a difference between the amount that you still owe on your lease and the amount you receive from your insurance company after you make a claim. Many leases will include gap insurance as part of your monthly lease payment.

Where can I take defensive driving?

Taking a defensive driving course can earn you a 10 percent discount off a portion of your auto insurance premium for three years. Taking a refresher course towards the end of the three year period can boost the discount to 15 percent.

While most defensive driving courses take place in a classroom at this time, Insurance Commissioner Denn has recently begun approving defensive driving courses that can be taken online.

A list of all defensive driving courses can be found here.

What should I do if my insurance is cancelled?

An insurance company can generally only cancel your policy if you don’t pay your premiums, if you lose your license or if you do not report something you should have, such as a driving violation when you applied for insurance or a change in your insurance status, such as purchasing a new car and not reporting it to your insurance company.

An insurance company does have the ability to not renew your insurance, as a result of violations or accidents or for other reasons.

If you are left without insurance and no private insurance company will take you as a new customer, you have the ability to purchase insurance through a program called the “Delaware Auto Plan” mandated by the state to provide auto insurance for people who cannot obtain it elsewhere. The rates in the Delaware Auto Plan are higher than through a private company, so it should be considered a last resort.

To obtain coverage in the Delaware Auto Plan program, you should contact an insurance agent.

IMPORTANT: If you do lose your auto insurance, act quickly to become insured. Do not drive without insurance.

Should I get insurance for a rental car?

As long as you have your own car insurance, including collision and comprehensive coverage, you do not need to buy extra insurance from the rental company if rent while on vacation or for non-business use.

If I borrow someone else's car, or if someone borrows my car, whose insurance is responsible if there is an accident?

Almost all liability policies cover any licensed driver who drives your car with your permission. In general, your liability insurance also covers you if you drive a friend's car and the friend is not insured. But beware: Some policies state specifically that no other person is covered when driving your car. Check your policy to make sure.

How do I prevent and report insurance fraud?

There are two main types of fraud when it comes to auto insurance: application fraud and filing false claims.

Application fraud includes:

Falsely reporting where your vehicle is normally garaged. For example, if our insurance rates are based on the location that you tell the insurance company your vehicle is normally kept and used. If you live and work in Pennsylvania but, stay at the Delaware beaches on the weekend, your vehicle should be insured in Pennsylvania. If you insure it in Delaware, by telling the insurance company that the vehicle is garaged in Delaware, you are committing fraud.

Failing to disclose prior claims or accidents when asked during the application process for insurance.

Failing to list all eligible drivers in a household on the application.

Obtaining insurance on a vehicle in your name on which another person will be the principle driver because that driver cannot either obtain coverage elsewhere or would have to pay higher premiums.

Filing false claims includes:

Overstating the value of repairs or replacement costs as reported for a loss from an auto collision, damage to property or theft claim.

Altering any receipts for any of the above items

Creating a false receipt for any of the above items.

Claiming false or exaggerated injuries to secure lost wages or any other injury settlement resulting from an accident

Auto insurance fraud costs all drivers by raising the premiums of all drivers to cover false claims. If you know of insurance fraud, call 1-800-632-5154.

Insurance fraud is punishable by up to two years in prison and fines up to $10,000.