Uninsured vs. Underinsured Motorist Coverage in Delaware

By the FigureMyTax Editorial Team · How we calculate

Delaware requires uninsured motorist coverage unless you reject it in writing. Underinsured coverage comes with an optional additional coverage, and a driver is underinsured when their limits are less than your damages.

Uninsured motorist (UM) coverage

18 Del. C. 3902(a) requires every policy insuring against liability from a motor vehicle registered or principally garaged in Delaware to provide UM coverage for bodily injury, sickness, disease, death and personal property damage from uninsured and hit-and-run vehicles, unless an insured named in the policy rejects it in writing on a form furnished by the insurer that describes the coverage rejected. The amount cannot be less than the minimum financial responsibility limits, and property damage has a $250 deductible unless the parties agree otherwise.

Who counts as uninsured

A vehicle with no liability bond, insurance or other security at least equal to the minimum; one whose insurer denies coverage or becomes insolvent; or a hit-and-run vehicle. For a hit-and-run, there must be physical contact with you or your insured vehicle, or, without contact, both the driver and the owner must be unknown; the accident must be reported to the police or proper governmental authority, and you must notify your insurer within 30 days, or as soon as practicable, of your legal action.

Underinsured (UIM) coverage is optional

Every insurer must offer the option to buy additional coverage up to $100,000 per person and $300,000 per accident, or $300,000 single limit, not above the bodily injury limits in the basic policy, and the additional coverage includes underinsured protection. Accepting it amends the uninsured coverage to pay for bodily injury damage you are legally entitled to recover from the driver of an underinsured vehicle (3902(b)(1)).

The damages test

An underinsured vehicle is one for which the bodily injury limits under all bonds and policies applicable at the time of the accident are less than the damages you sustained, and those limits are stated on the declaration sheet. Your insurer need not pay until the limits available to you are exhausted by payment of settlements or judgments. If you release a single at-fault driver for the entire limits, you stay legally entitled to recover against that driver for purposes of your UIM claim (3902(b)(2) to (4)). The statute does not say whether the other driver's payment reduces your UIM limit, so check your policy.

Minimum limits and PIP

Liability insurance must be at least $25,000 per person and $50,000 per accident for bodily injury and $10,000 for property damage (21 Del. C. 2902(b)). Separately, Delaware requires personal injury protection with minimum limits of $15,000 for one person and $30,000 for all persons in one accident, covering medical expenses and lost earnings within 2 years (21 Del. C. 2118).

Deadlines and next steps

The general limit for a personal injury lawsuit is 2 years from the date of injury (10 Del. C. 8119). Stacking is a separate question; see our statute post and the explainer, then use the Delaware UM/UIM stacking calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Delaware's rules apply to your specific case with a licensed Delaware attorney.