Delaware Car Insurance Companies Fined $50,000
Delaware car insurance
Delaware Car Insurance Companies Fined $50,000
Dover, Delaware – Delaware insurance companies Allstate Insurance Company and Encompass Insurance Company were fined a total of $50,000 for violating sections of the Delaware Insurance law.
The Delaware car insurance companies failed to comply with the insurance law by not providing driving discounts to qualified drivers (Allstate). Encompass car insurance violated the law by imposing an accident surcharge on the drivers involved in accidents even though the policyholder was not at fault. In total, 3,645 Delaware car insurance clients were affected by the errors.
Insurance Commissioner Stewart said, “It’s my job to protect the consumers and make sure insurers get it right. They’ve got to make sure their business processes align with Delaware insurance laws or face the consequences. I believe imposing these fines will help protect our citizens and prevent future, similar errors.”
The companies returned a total of $848,355 dollars to the policyholders. Commissioner Stewart said she feels they did a good job of notifying the people and paying them back. Commissioner Stewart said she worries about future highway safety efforts, especially the defensive driving program. She said one of her goals is to improve highway safety by putting more drivers in defensive driving classes.
“I am committed to making sure that drivers who complete and approved defensive driving course get the discount to which they are lawfully entitled,” said Insurance Commissioner Stewart. (www.delawareinsurance.gov)
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Delaware Auto Insurance Requirements
Delaware auto insurance laws require that all Delaware drivers carry the following types of minimum car insurance coverage.
1. Bodily Injury Protection – $15,000/$30,000
This is put toward bodily injury or death of another person for which you are responsible. Your insurance company will pay up to $15,000 for one person in one accident; up to $30,000 for all people involved in a single accident (no more than $15,000 per person).
2. Property Damage Protection – $10,000
If you are at fault in a car accident, you are responsible for the damages to the other person’s car. With this minimum coverage, your car insurance company will pay up to $10,000 for property damage for a single person in a single accident.
3. Personal Injury Protection (PIP) – $15,000/$30,000
Your car insurance company will pay for the medical expense and loss of wages to you and your passengers, whether you are responsible for the accident or not. This minimum car insurance coverage will pay up to $15,000 to any person in a single accident; up to $30,000 to anyone involved in a single accident; it also includes $5,000 for funeral expenses.
These are simply minimum requirements from your car insurance company, and you may wish to buy higher deductibles.
Optional Coverage –
Collision coverage pays for physical damage to your car after colliding with another vehicle or object. This coverage is based on the value of your vehicle and is the most expensive type of car insurance.
Comprehensive coverage pays for damage to your car from other causes such as theft, vandalism, and more. Comprehensive coverage also covers windshield damage.
Uninsured/Underinsured motorist coverage pays for damages if the driver who caused the accident does not have adequate car insurance, or is a hit-and-run driver.
Towing and labor coverage will pay for your car to be taken to a repair shop by towing it. These premiums are very low.
Rental reimbursement coverage will pay for a driver to have a rental car after an accident. Rates vary between insurance companies.
Above all, make sure to shop around before you buy car insurance.
Get a number of car insurance quotes from different sources to make sure your car insurance rates are fair and competitive.
