Delaware PIP: A $15,000 Deductible Can Leave Zero
James Brazil lives in Mérida, Mexico. He founded Swift Agent Sites and studied Classics at the University of Mississippi.
Published · Updated
Delaware requires personal injury protection of $15,000 for any one person and $30,000 for all persons in one accident. The Department of Insurance auto guide says an agent may quote that $15,000 limit with a $15,000 deductible. Unless you choose otherwise and pay more, the deductible reduces the PIP benefit to zero.
How a matching deductible erases the benefit
Ask whether the quote is restricted or unrestricted PIP. A limit and a deductible are different lines. The limit is the most the policy pays. The deductible is what you absorb first. If both numbers are $15,000, the first $15,000 of a PIP loss is yours, and the policy's $15,000 cap has nothing left to pay. The guide's warning is that this quote can be the default unless you choose otherwise and pay more. "Choose otherwise" means a lower deductible or a broader form, and it costs more premium. A verbal promise that "PIP is included" does not tell you the deductible.
The guide tells you to ask about restricted PIP and unrestricted PIP. Restricted PIP generally limits who the benefit pays. Unrestricted PIP pays a wider group. The guide does not, in the pages used here, print a statute section that defines every passenger the restricted form drops. Ask the agent to show the endorsement and to name who is left out. Do not treat the two words as marketing labels.
What PIP pays when the deductible does not wipe it out
The guide says PIP pays medical expenses and lost wages of the insured and passengers, whether or not the insured was at fault. It includes up to $5,000 for funeral expenses. That $5,000 is part of the PIP description. It is not a reason to ignore the deductible. A funeral bill still meets the deductible before the policy pays, if a deductible applies to that expense. Ask the agent whether the deductible applies to funeral expenses or only to medical bills. The guide states the $5,000 figure. It does not, in the portion used here, spell out every deductible exception.
Liability of 25/50/10 is a separate requirement. It pays people you hurt and property you damage. It is not PIP. See the registration minimums. The card still has to be in the car. The fine for going without the required insurance is $1,500, then $3,000. A PIP deductible of $15,000 does not satisfy the DMV if the policy itself is cancelled. Surrender the plates before you cancel a policy on a car that still has an active registration.
Defensive driving is a discount, not PIP
The same guide says an approved defensive-driving course gives 10 percent off a portion of the auto insurance for three years. A refresher taken just before the three years end gives 15 percent. The discount applies to a portion of the premium, not to the whole bill, and the guide is the source of the words "a portion." It does not lower the PIP deductible. A course certificate and a $15,000 deductible can sit on the same policy. Ask the agent which coverages the 10 percent touches.
Mark the three-year date when you finish the course. The refresher has to come just before that period ends if you want the 15 percent. A course taken a year late is not the refresher the guide describes. Keep the certificate with the declarations page.
Uninsured motorist coverage is still optional
The guide says collision, comprehensive, and uninsured-motorist coverage are not required. If you buy UM, the guide says there is an automatic $250 property-damage deductible and that a police report is required for a UM claim. UIM bodily injury does not pay vehicle damage. None of that changes the PIP deductible. They are separate lines on the declarations page. A bulletin says insurers must offer UM/UIM at 25/50/10. The offer is not a requirement that you buy it, and the current text of section 3902 was not fetched for this article.
A complaint about a PIP deductible you did not understand goes to the Department in writing or by the consumer line (302) 674-7310. The Department is not your lawyer. Auto arbitration, if informal complaints fail, costs a $50 filing fee. See that process. No response time in days was stated on the complaint page, so this article does not invent one.
What to ask before you accept the quote
Ask for the PIP limit, the PIP deductible, and whether the form is restricted or unrestricted. If the deductible equals the limit, ask what it costs to lower the deductible. Ask who is excluded on the restricted form. Ask whether the defensive-driving discount, if you have one, changes the deductible or only a portion of the premium.
Write the answers on the quote and compare them with the declarations page when the policy arrives. A quote that says "$15,000 PIP" without the deductible is incomplete. The guide's point is that the deductible can be the whole story. Flood coverage for the house, the FAIR Plan phone, and a mover's business license do not fix this auto line. See flood and the revenue license only when those are the actual questions.
FAQ
Can a PIP quote pay nothing? Yes. The guide says an agent may quote $15,000 of PIP with a $15,000 deductible, and that unless you choose otherwise and pay more, the deductible reduces PIP to zero.
What should I ask besides the limit? Whether the PIP is restricted or unrestricted, and who that choice leaves out.
Does PIP include a funeral benefit? The guide says PIP includes up to $5,000 for funeral expenses.
What does a defensive-driving course do? Ten percent off a portion of the auto premium for three years. A refresher just before the three years end gives 15 percent. It does not erase a PIP deductible.
Is this the same thing as uninsured-motorist coverage? No. The guide says UM is not required. PIP is part of the registration requirement.
Next step
Before you accept an auto quote, read the PIP deductible next to the $15,000 limit. If they match, ask what it costs to choose a lower deductible or an unrestricted form.
Sources: Delaware Department of Insurance auto guide.
This is general information for Delaware. It is not a recommendation to buy, drop, or switch a specific policy. Confirm current details with the insurer or a licensed agent who knows your situation.
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