Personal Injury Protection (PIP) is Delaware’s no-fault insurance benefit: it pays your medical bills, lost wages, and certain other expenses after a crash regardless of who caused the accident. Every auto policy issued in Delaware must include at least $15,000 per person and $30,000 per accident in PIP coverage (21 Del. C. § 2118). And no, using it will not raise your premium: 18 Del. Admin. Code § 609 bars insurers from surcharging you for a not-at-fault claim, PIP included. Insurers still delay, dispute, and underpay PIP benefits — and using PIP incorrectly can hurt your injury claim against the at-fault driver.

Delaware PIP: Key Facts

  • Minimum coverage: $15,000 per person / $30,000 per accident, plus $5,000 in funeral expense coverage (21 Del. C. § 2118).
  • No fault required: PIP pays even if you caused the crash. It covers drivers, passengers, and pedestrians struck by the vehicle.
  • What it pays: Medical bills, lost earnings, substitute services (like household help), and funeral expenses.
  • Time limit: PIP covers eligible expenses incurred within 2 years of the accident.
  • Trial impact: Expenses payable by PIP are generally not admissible as damages at trial – how you use PIP affects the value of your liability claim.
  • Premium protection: Delaware law bars insurers from raising your rate for a not-at-fault PIP claim (18 Del. Admin. Code § 609, § 5.1.1).

Will Using My PIP Benefits Raise My Insurance Rates?

No – not for a not-at-fault accident. This is one of the most common questions we hear from clients deciding whether to use their own coverage, and it stops a lot of injured people from getting the medical care they’re entitled to. Delaware regulators have already settled it.

The controlling rule is 18 Del. Admin. Code § 609, Limitations on Automobile Surcharges in Voluntary Markets and the Assigned Risk Plan (formerly Regulation 68), adopted by the Insurance Commissioner under 18 Del. C. §§ 314, 2503, and 2527. Two sections matter most:

“No surcharge shall be imposed against a named insured or any person insured under the policy for any claim paid by an insurer arising from a not at-fault accident.” — § 5.1.1

“No surcharge shall be imposed against a named insured or any other person insured under the policy for an accident in which the insured is involved but results in no payment by the insurer.” — § 5.1.2

The regulation defines “surcharge” broadly – it covers any added premium tied to a claim, including getting moved into a more expensive pricing tier. Insurers can’t relabel a rate hike as a “tier change” to get around the rule. Because PIP pays out regardless of fault, a PIP claim following a not-at-fault crash falls squarely under § 5.1.1: the carrier cannot use that claim, or the fact that you used your own coverage, as grounds to raise what you pay going forward.

Are There Exceptions?

Yes, and they’re tied to fault, not to which coverage paid the bill:

  • If you’re found more than 50% at fault for the accident, the insurer can surcharge you for that at-fault accident – separately from whether PIP also paid your medical bills. PIP is never itself the reason for a surcharge; fault is.
  • In a single-car accident that results in a claims payment, § 4.1 of the regulation creates a rebuttable presumption that the accident was “at-fault,” so expect the insurer to start from that assumption.
  • Even a lawful at-fault surcharge is capped: it can’t exceed the pro-rata amount the insurer paid or reserved on the claim over three years (§ 5.1.3), can’t run longer than three years (§ 5.1.4), can’t be stacked with a tier change for the same accident (§ 5.1.5), and requires at least 10 days’ written notice with the reason (§ 5.1.7).
  • You can dispute a surcharge amount, and the Delaware Department of Insurance must decide within 15 business days (§ 5.1.3).

What Should I Do If an Insurer Threatens to Raise My Rate?

  1. Ask for written notice of the surcharge and the stated reason.
  2. Check the fault determination – the rule turns on fault, not on which benefit paid the claim.
  3. File a complaint with the Delaware Department of Insurance if you believe § 609 was violated.
  4. Talk to a lawyer before accepting a settlement or benefits cutoff tied to a fault dispute – the same comparative-negligence finding affects both your surcharge exposure and your injury claim.

Why PIP Claims Get Complicated

PIP sounds simple until the insurer schedules an “independent” medical exam to cut off your benefits, disputes whether treatment is reasonable and necessary, or exhausts your PIP on the wrong bills. Coordinating PIP with your health insurance and your liability claim is where most people lose money. Our team manages the PIP ledger on every case so benefits stretch as far as possible and nothing admissible is wasted.

PIP and Your Injury Claim Are Separate

PIP comes from your own policy. Your claim against the at-fault driver is separate, covers pain and suffering and losses beyond PIP, and follows Delaware’s 2-year statute of limitations (10 Del. C. § 8119). We handle both together so the insurance companies cannot play them against each other.

The Inkell Firm represents crash victims across Delaware – Wilmington, Newark, Dover, Middletown, Bear, Smyrna, Milford, Seaford, and Georgetown – and every community in New Castle, Kent, and Sussex Counties. Learn more about our Delaware car accident practice or our service area.

Delaware PIP FAQs

Will my insurance premium go up if I use my PIP benefits?

No. PIP pays regardless of fault, and 18 Del. Admin. Code § 609, § 5.1.1 specifically bars insurers from surcharging a policyholder for a claim arising from a not-at-fault accident. Using PIP by itself is never a lawful basis for a rate increase.

What if the accident was partly my fault?

Delaware uses a comparative negligence standard. If you’re found more than 50% at fault, the insurer may surcharge you for the at-fault accident – but that surcharge is capped at the pro-rata claim amount, limited to three years, and requires 10 days’ written notice, with a right to challenge it before the Department of Insurance.

Can my insurer move me to a pricier tier instead of calling it a “surcharge”?

Not for a not-at-fault claim. Delaware’s regulation defines “surcharge” to include a move into a higher pricing tier, so insurers cannot sidestep the rule with different terminology.

Do I have to pay PIP back if I win my case?

Generally no. PIP is first-party coverage, not a lien like health insurance. But coordination rules are technical, and out-of-state PIP or health plans may have reimbursement rights – we sort this out on every case.

Can the insurance company cut off my PIP benefits?

Insurers often use paper reviews or defense medical exams to stop paying. You can challenge a termination, and unreasonable denials can expose the carrier to additional liability. Do not accept a cutoff without having it reviewed.

I was a passenger. Whose PIP applies?

Usually the PIP of the vehicle you occupied. Pedestrians and cyclists struck by a car are typically covered by the striking vehicle’s PIP.

What should I do if I think I was surcharged illegally?

Request the written notice of the surcharge, confirm the fault determination on the claim, and if it doesn’t add up, file a complaint with the Delaware Department of Insurance or speak with an attorney.

Questions about PIP benefits, a rate increase, or a fault dispute after a Delaware crash? Call The Inkell Firm at (302) 297-7775 for a free consultation. No fee unless we recover.

Official Delaware PIP resources

For the statute and insurance-process information underlying this page, review these primary Delaware sources:

For a broader accident checklist, visit what to do immediately after an accident. Contact The Inkell Firm to discuss a Delaware PIP issue.