Delaware uses the tort system for dealing with car insurance claims. Unlike no-fault states, one driver is deemed to be at fault when an accident occurs. He or she is financially responsible for paying for any damages caused, including compensation for pain and suffering, lost wages and the cost of repairing the other driver’s vehicle.
The at-fault driver’s insurance company will pay for the damages, up to the policy limits. If the amount of damages caused exceeds the level of coverage available, the driver responsible for the accident is required to pay the balance owing personally. For this reason, it’s important to consider the level of coverage needed carefully to make sure that there is adequate protection in place to cover damages sustained in a serious accident.
A person who does not have car insurance in place in Delaware does not have this valuable protection. Not only do they have to pay the full amount for any damages they cause in an accident, but they will also be facing significant legal consequences as well. The individual who is caught driving without insurance will be facing a fine, as well as a license suspension.
The state Department of Motor Vehicles is required to notify law enforcement agencies of new policies issued, as well as ones that have been cancelled or were not renewed for any reason. A police officer will ask for proof of insurance during a traffic stop, and a person who cannot provide it will be penalized.