Discover how to find affordable Delaware car insurance with our 2025 guide. Learn about factors influencing rates, average costs, and the best providers to secure the cheapest coverage.

Finding affordable auto insurance in Delaware can be challenging, given the varying rates and coverage options offered by different providers. The average cost of auto insurance in Delaware is approximately $2,456 annually, which is notably higher than the national average. This comprehensive guide explores the factors affecting auto insurance rates, the best providers for different scenarios, Delaware car insurance requirements, and how to secure the cheapest auto insurance in Delaware.

Factors Influencing Delaware Auto Insurance Rates

Several factors influence automobile insurance rates in Delaware, including age, driving record, credit score, and the level of coverage. Insurance companies use these factors to assess the risk associated with insuring a driver, impacting the premiums charged. For example, younger drivers and those with poor credit normally pay higher rates due to perceived higher risks. Additionally, the type and age of the vehicle, annual mileage, and location (rural vs. urban areas) affect insurance costs.

What are the Delaware Car Insurance Requirements?

Delaware law has a minimum level of car insurance requirement for all registered motor vehicles. These requirements cover medical expenses in case of an accident, property damage, and bodily injury. The required minimum coverage limits are:

• Bodily Injury Liability (BI): $25,000 per person, $50,000 per accident
• Property Damage Liability (PD): $10,000 per accident
• Personal Injury Protection (PIP): $15,000 per person, $30,000 per accident

Bodily Injury Liability Insurance in Delaware

Bodily injury liability coverage is the mandatory coverage that pays for injuries and resulting costs, like lost wages, medical bills, and funeral expenses. The coverage pays to the other driver when you are at fault. While the minimum coverage limits are at $25,000 per individual and $50,000 per accident, it’s recommended to have higher limits. This will offer better financial protection.

Property Damage Liability Insurance (PD) in Delaware

PD liability is the mandatory coverage that pays for damage to the other party's property, such as the car, a fence, a house, etc., when you are at fault. Most drivers in Delaware exceed the $10,000 per-accident minimum requirement to cover the cost of expensive vehicle repairs.

Personal injury protection (PIP) in Delaware

Unlike many states, Delaware requires personal injury protection (PIP) for all drivers. The coverage pays for the medical expenses and lost wages for you and your passengers, regardless of whether you're the at-fault driver. PIP is a unique feature that contributes to Delaware's higher insurance costs.

Uninsured and Underinsured Motorist Coverage in Delaware

Uninsured and underinsured motorist coverage, although not mandatory, is beneficial to have. This is because the protection covers you if you’re in an accident with a driver who doesn’t have insurance or does not have enough insurance to cover your damages.

Additional Car Insurance Policy Coverages in Delaware

The state's minimum insurance is just the legal minimum. Most drivers will need additional coverage against accident-related expenses. Therefore, drivers can obtain more coverage for better financial protection. Additional coverage is especially beneficial for new car owners and drivers, as well as those with leased vehicles, and those who have already received their first offense.

The most popular optional car insurance coverages in Delaware are:

• Collision Coverage: Pays for damage to your own car after any accident, no matter who caused it.
• Comprehensive coverage: Protects your car from non-collision-related incidents. This includes theft, hitting an animal, vandalism, fire, or storm damage.

The Average Cost of Car Insurance in Delaware

Based on data from multiple sources, the average annual cost of full coverage car insurance in Delaware is approximately $2,456 or $204.67 per month. This rate is higher than the national average due to factors such as Delaware's high population density and the state's requirement for personal injury protection (PIP) coverage.

Best Car Insurance Companies in Delaware

According to various studies and customer reviews, several companies consistently offer quality coverage, rates, and good customer service in Delaware.

1. USAA

USAA has the cheapest average yearly rate in Delaware at $1,654. It is a much lower rate than the state's average policy cost of $2,456. But there is a catch. USAA only sells insurance to military members, veterans, and their eligible family members.

2. Nationwide

For a 40-year-old married driver, Nationwide is likely to have the next lowest price. So if you do not qualify for USAA, you may find the lowest premiums at Nationwide. For a 40-year-old woman, Nationwide averages $1,719 per year. On the other hand, for a 40-year-old man, it averages $1,766 per year.

This pattern also holds for senior drivers. For a married 60-year-old, Nationwide is the second-cheapest option, costing $1,622 annually for women and $1,759 annually for men. Due to USAA's strict membership rules, Nationwide often proves to be the most affordable option for people.

3. Geico

Geico is another low-cost choice. Its average rate in Delaware is $1,852 per year, which is the next cheapest available. For teen drivers, Geico has the lowest average prices. It costs $4,575 a year for a female teen and $4,532 for a male teen.

For single 25-year-olds, prices are much lower, with an average cost of $1,970 for women and $1,895 for men. Additionally, for drivers with a clean record, Geico is the second cheapest option at $1,852 per year. And for drivers who only want the state's minimum required coverage, Geico is also the second cheapest, with an average rate of $934.

4. State Farm

For drivers with at-fault accidents, one of the two most affordable companies is State Farm, with an average rate of $2,805. The state's average annual rate after a car accident is significantly higher, at $3,330.

Additionally, for a driver with a speeding ticket, State Farm's average annual rate is $2,584, coming in second after USAA.

Cheapest Car Insurance by Driver Profile

The cost of car insurance can vary significantly based on the driver's profile. Below are some of the cheapest options for various types of Delaware drivers.

1. Young Adults (Single 25-year-olds)

For young adult drivers, average costs are much lower than for teenagers. Geico has the lowest prices for men and women in this age group. The average annual rate for women is $1,970, and $1,895 for men.

2. Teen Drivers

Teen drivers in Delaware will pay higher car insurance rates. However, you can lower these costs by adding your teen to your own policy and selecting a safe vehicle for them. Additionally, use every possible discount to save money.

For the lowest prices, look at Geico. Geico has the cheapest average rates for teen drivers in the state, at $4,575 per year for female teens and $4,532 per year for male teens.

3. Drivers with Poor Credit

People with poor credit can expect to pay higher premiums. Geico offers the best rates for this group, averaging $231 per month for full coverage.

4. Drivers with a Clean Record

Good drivers with a clean record can find competitive rates from USAA. However, since most motorists will not qualify, the second-best option is Geico at $1,852 annually.

5. Drivers with a DUI

After a DUI, the average driver in Delaware pays $4,497 a year. That is far more than the cheapest option, which is State Farm. State Farm's average rate for a driver with a DUI is $2,584 per year.

Car Insurance Costs by City in Delaware

Insurance premiums can also vary by city due to factors such as population density, crime rates, and local regulations.

Source: Best car insurance in Delaware for 2025 (Bankrate)

Delaware City has the highest average rates, while Bethany Beach & Ocean View offer the lowest.

Tips for Finding Cheap Car Insurance in Delaware

To secure the best rates, consider the following strategies:

1. Compare Multiple Quotes: Use comparison tools to get quotes from multiple insurers. This can help identify the best deal and affordable rates based on your specific profile.
2. Keep a Clean Driving Record: Avoid traffic violations and accidents to keep your premiums low.
3. Choose Higher Deductibles: A higher deductible can lower your monthly premiums, while ensuring you can afford the out-of-pocket costs if you need to make a claim.
4. Bundle Policies: Many insurers offer discounts if you bundle car insurance with other policies, such as home or renters insurance.
5. Take Advantage of Available Discounts: Look for discounts for good students, safe drivers, and vehicles with safety features.

Frequently Asked Questions:

What Factors Influence Car Insurance Rates In Delaware?

Several factors affect car insurance rates in Delaware, including your age, driving history, credit score, vehicle type, location (urban versus rural areas), and the level of coverage you select. Insurers assess these factors to determine the risk of insuring you, which affects your premiums.

How Does 1 Compare To The National Average?

The average cost of car insurance in Delaware is approximately $2,456 per year, which is higher than the national average. This is due to factors like Delaware's high population density and the state's requirement for personal injury protection (PIP) coverage.

Which Car Insurance Companies Offer The Cheapest Rates In Delaware?

Some of the cheapest car insurance providers in Delaware include Geico, USAA, State Farm, and Nationwide. Geico and USAA are often the most affordable overall, offering the cheapest rates for drivers with a clean driving history.

How Can I Find Cheap Car Insurance In Delaware If I Have A Poor Credit Score?

Drivers with poor credit can find competitive rates by shopping around and comparing quotes from different insurers. Geico is known for offering some of the best rates for drivers with poor credit in Delaware.

Do Car Insurance Rates Vary By City In Delaware?

Yes, car insurance rates can vary by city within Delaware. For example, Delaware City tends to have the highest average rates, while Bethany Beach & Ocean View offer some of the lowest premiums in the state. Factors like population density and local crime rates contribute to these differences.