Don’t Let a Boost in Delaware Tourism Raise Your Auto Insurance Rates

The first state gets its first president, and Delaware’s tourism and hospitality industries are expecting a windfall from Joe Biden.

We’ll provide guidance on how to handle the influx, especially when driving in your small, densely populated state.

Delaware auto insurance is already expensive, so you want to keep an eye on your insurance mileage limit. You also want to keep a check on road rage caused by more drivers and more traffic, because if that results in an accident or a ticket, your insurance premium could rise significantly.

Delaware tourism is on the rise

Those who live in popular tourist areas have a love-hate relationship with their visitors, and residents of Delaware hotspots — including Wilmington and Dover, and, of course, Rehoboth Beach and Bethany Beach — are no exception. Here’s why.

Delaware Tourism Perks: Money and Jobs

Tourism plays a big role in this small state. The value of tourism translates into increased economic and employment opportunities, as evidenced by statistics from the Delaware Office of Tourism. Tourism accounts for $3.7 billion of the state’s gross domestic product as well as 45,500 jobs, making it the state’s fourth-largest private employer.

The tourism industry generates over $568 million in tax revenue, saving every Delaware household an additional $1,564 in taxes.

Delaware Tourism Drawbacks: COVID-19 and Traffic

The downside of tourism is that whenever there is a crisis, opportunities dry up in the hospitality industry. For example, the impact of COVID-19 on tourism in Sussex County hit just weeks after the World Health Organization declared COVID-19 a pandemic.

As far as traffic is concerned, with the exception of the pandemic, housing and jobs in Delaware have grown steadily in recent years, along with tourism, which equates to ever-increasing traffic. Add to that what locals call “Joe Jam,” meaning the traffic jams that are caused every time Joe Biden visits the state.

Tourism Joe Biden and Delaware

While locals and business owners are thrilled that Rehoboth Beach has become the nation’s summer capital, drivers are frustrated with the backups that come with the territory when a sitting president comes to visit. Each time his motorcade moves, causing sections of roads to be closed, it can cause up to an hour of delay on the roads.

The president doesn’t even have to be in the state to cause traffic problems for residents. Tourists are interested in Biden’s ties to Delaware, so much so that Delaware encourages visitors to do Following conduct.

Joe Biden’s Guided Tour takes the curious throughout the state. There is the Biden Welcome Center on I-95 on the way to Wilmington; the Queen Theater, Chase Center and Joseph R. Biden, Jr. Railroad Station in Wilmington; the Air Mobility Command Center in Dover; the Junction Breakwater Trail in Rehoboth Beach and the UDairy Creamery in Newark.

Delaware car insurance

Those extra tourist dollars are certainly nice, especially if you have a connection to the hospitality industry. But with more drivers on the road, it increases the risk of accidents, as well as increasing your vehicle’s mileage to find alternate routes to get you where you need to go.

And while no one wants to incur higher insurance rates for damaging their car or driving more miles than expected on their insurance, the increases are especially bad for Delaware drivers’ finances.

Delaware auto insurance is high, nearly 20% above the national average. The average cost for minimum coverage in the state is nearly $800 per year, and full coverage is over $1,700 per year.

Several factors are at play behind the expense. Delaware is small in size but, as noted, densely populated. It has a large number of uninsured drivers. It’s in the top 10 states with the worst drivers, with violations like failing to obey stop signs and traffic lights, and not wearing seat belts.

And Delaware has unique insurance requirements. Like other states, it requires liability coverage, specifically:

  • $25,000 per person for bodily injury and death resulting from at-fault accident
  • $25,000 per incident for multiple people injured in the same accident
  • $10,000 to pay for damage to another person’s vehicle or other personal property damaged as a result of an at-fault accident.

But while not a no-fault state, Delaware also requires Personal Injury Protection (PIP) insurance. Also known as no-fault insurance, it covers medical expenses, lost wages and all other related costs for up to two years after an accident for all parties to any accident involving a car, including drivers , passengers and anyone injured in the collision. .

These minimum coverage requirements are $15,000 of expenses per person involved in an accident, $30,000 of expenses for all parties involved in an accident, and $5,000 of funeral expenses.

Delaware also has restrictions on cancellation policies for bad drivers. As a last resort option for drivers who have been denied coverage by multiple companies, the state’s Delaware auto insurance plan assigns high-risk drivers to an insurance company.

So all insurance companies in Delaware absorb high-risk drivers, and while rates are still high, insurance companies have to pay to transport these high-risk drivers one way or another.

Does mileage affect car insurance?

Delaware drivers have many reasons to watch their mileage because mileage affects car insurance rates.

Insurance companies ask you to estimate the number of kilometers you travel each year in order to assess their risk of insuring you. Since the average annual mileage is 12,000 miles, an estimate in this area will help you get a fair rate.

But if that car insurance mileage limit is exceeded, it means you’re on the road more, so your risk of being involved in an accident is higher. For insurers, this means their chances of having to pay a claim are higher, so they mitigate that risk by raising your premium. Limits and price increases vary by company.

Conversely, auto insurance mileage limits can benefit you. If you drive less than 7,500 miles per year, most insurers offer a low mileage discount. This can range from 10% to 30% on your rate.

Car insurance and road rage

If you let Delaware traffic get the better of you, you won’t just raise your blood pressure. You could increase your driving record points and be in danger of suspension. You can also increase your insurance.

It only takes 14 points to suspend a driver’s license in Delaware. And if your road rage leads to a few major infractions, it won’t take long to hit that limit. Reckless driving and aggressive driving are each worth 6 points, speeding 20 miles per hour over the speed limit gets you 5 points, and ignoring a stop sign or red light adds 3 points.

Repeat violations can put you in the high-risk category for insurance, and you could end up paying 84% more than standard car insurance.

And unless you have an accident forgiveness, all it takes is an indulgence behind the wheel to drive up your insurance premiums. An accident can affect a clean driving record by up to 45%, and a DUI can increase your rate by at least $1,000.

How to Save Money on Car Insurance in Delaware

Driving smarter and comparing car insurance quotes are two of the best ways to keep your car insurance rates as affordable as possible. Here are some tips to help you deal with the increased traffic in Delaware.

In general, pay more attention to news from the White House, especially the President’s whereabouts. The sooner you know about a presidential visit to Delaware, the more opportunity you have to make driving plans that won’t add too much to your mileage or frustration level.

How to reduce your mileage

Finding ways to get around without using your car can also save you mileage and road rage. Adopt public transport; i.e. DART First State (Delaware Transit Corporation buses).

If that’s not possible, try carpooling to work or even for personal activities. Take turns driving with co-workers, neighbors, friends and relatives so everyone gets a break from driving.

If you only have to walk a short distance, consider walking or cycling. If you must drive your car, planning ahead can help. Combine your shopping to make fewer trips, or find alternative places away from the very touristy areas to buy your goods and services.

Other good ways to combat road rage are to allow more drive time, play soothing music, ignore an angry driver, and be patient by reminding yourself of how impatient your impatience can be. increase your car insurance.

Now that you have a better idea of ​​mileage limits and other car insurance savings, don’t let the traffic get to you: impersonate the president by putting on those aviator sunglasses, smiling broadly, and looking at the positive side of your driving situation in Delaware. .

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Justin D. O'Neill