One of the most underused but valuable parts of Delaware auto insurance is uninsured motorist coverage. When the other driver has minimum or no coverage and your injuries are serious, your own UM/UIM coverage often determines whether you recover full damages.
The Detailed Answer
Delaware UM/UIM coverage is governed by 18 Del. C. § 3902 and related statutes and case law.
Mandatory UM Coverage
Delaware auto policies must include uninsured motorist (UM) coverage in amounts equal to the policy’s bodily injury liability limits, unless the insured rejects in writing. UM applies when the at-fault driver has no insurance or is unidentified (such as a hit-and-run driver).
Underinsured Motorist (UIM) Coverage
UIM coverage applies when the at-fault driver has insurance but the limits are insufficient to pay your damages. Delaware UIM is typically optional but should be purchased by every Delawarean. Coverage is offered up to the limits of your liability coverage.
Stacking
Delaware courts have addressed when UM/UIM coverage from multiple policies in the same household may be “stacked” to provide combined coverage. Stacking can multiply available coverage substantially in households with multiple vehicles.
Hit-and-Run and Phantom Vehicles
Delaware UM coverage applies to hit-and-run drivers and “phantom vehicles” that cause accidents without contact, subject to corroboration requirements such as witness statements or physical evidence.
Procedure
UM/UIM claims are made against your own insurance carrier, often after the at-fault driver’s coverage has been exhausted. Delaware policies typically require notice and allow the carrier the right to consent to settlement with the at-fault driver. Many policies also include arbitration clauses for UM/UIM disputes.
Bad Faith
UM/UIM carriers must handle their own insureds’ claims in good faith. Wrongful denial or delay can support bad faith claims under Delaware law, with potential consequential and punitive damages.
What This Means for Your Case
Always check your own policy for UM/UIM coverage when injured in a Delaware auto accident, even if the other driver has insurance. UIM frequently applies because Delaware’s $25,000/$50,000 minimum is inadequate for serious injuries. Always carry the highest UM/UIM limits you can afford. Related: auto accident overview, PIP coverage.
Related Questions
Q: Will my own rates go up if I file a UM/UIM claim?
Generally no, when you are not at fault. Delaware has restrictions on rate increases for non-fault claims, though specifics depend on the carrier and circumstances.
Q: Can my insurance carrier deny a UM/UIM claim?
Carriers can deny based on policy provisions, coverage disputes, or factual disagreements. Disputes are resolved through arbitration or litigation.
Q: What if I was a passenger in someone else’s car?
You may have UM/UIM coverage under the host vehicle’s policy, your own policy, or both, depending on policy language.
When to Talk to a Delaware Personal Injury Lawyer
UM/UIM claims involve insurance contract law and require careful policy analysis. With 10 years of prior experience as an insurance claims adjuster before becoming an attorney, Joseph M. Jachetti has experience handling Delaware UM/UIM disputes. Free consultations: (302) 984-1000. Visit his firm profile for more information.
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This page provides general legal information only. It is not legal advice and does not create an attorney-client relationship. For advice on your specific situation, contact Schuster Jachetti LLP.
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This page provides general legal information only. It is not legal advice and does not create an attorney-client relationship. For advice on your specific situation, contact Schuster Jachetti LLP.