Total loss laws in Delaware

When is a car totaled in Delaware?

Short answer: Delaware sets no percentage threshold for insurer-paid claims (21 Del. C. § 2512(a)-(b)), so the total-loss decision is generally the insurer's under your policy.

No percentage threshold was found. When a titled vehicle is transferred as salvage after a total-loss insurance settlement, the insurer must send the title to the DMV within 30 days of settlement for a salvage certificate. If the owner keeps the vehicle, the insurer must either do that or require the owner to get a salvage certificate before it pays the settlement.

Source: 21 Del. C. § 2512(a)-(b)

Many online tables mix up title-branding rules with the insurer's own decision. Compare the total loss threshold in every state.

Does insurance pay sales tax on a total loss in Delaware?

Short answer: Delaware has no general sales tax, but it charges a 5.25% document fee when you title a car. We found no rule that requires the insurer to include that fee, so check your policy and ask the adjuster whether the settlement covers it.

Delaware has no general sales tax. No Delaware statute or regulation was found that requires insurers to include title or registration fees, or the motor vehicle document fee, in a total-loss settlement, and Regulation 902 has no auto total-loss standards. Separately, Delaware DMV form MV347 (revised 9/12/2025) lets an owner whose vehicle was declared a total loss get a document-fee credit at titling, or a refund if the credit was not applied, on a replacement Delaware-titled vehicle obtained within one year. The application is due no later than 30 days after titling the new vehicle. The owner needs a signed letter on the insurer's letterhead giving the owner's name, the vehicle make, model, year and VIN, and the actual cash value paid before the deductible. The form says eligibility follows Division policy and cites 30 Del. C. § 3001(5), whose text mentions only trade-ins and private sales. The credit comes from the DMV, not the insurer.

Source: unclear for the insurer (not addressed in 18 DE Admin. Code 902); DMV document-fee credit: Del. DMV Form MV347, citing 30 Del. C. § 3001(5)

Tax on a replacement car in Delaware

No sales tax. A motor vehicle document fee of 5.25% of the purchase price (or NADA trade-in value, if higher) is charged at titling, effective Oct 1, 2025 (was 4.25%). Dealers compute it net of trade-in. Small minimums apply below $500.

Source: https://news.delaware.gov/2025/09/30/dmv-fees-increase-in-october-2025/

See the sales tax and fee rule in every state.

How must the insurer value your car in Delaware?

No Delaware rule was found on total-loss valuation methods (comparables, distance or dealer quotes). General unfair claims standards apply when committed often enough to be a general business practice. Insurers may not compel insureds to sue by offering substantially less than they would get under normal fair claims evaluations. When asked, they must promptly explain the policy, factual or legal basis for a denial or compromise offer; the explanation may be oral but must be documented in the claim file. They must attempt in good faith a prompt, fair and equitable settlement once liability is clear.

Source: 18 DE Admin. Code 902 §§ 3.1.6, 3.1.7, 3.1.13; 18 Del. C. § 2304(16)

To check the numbers in your own report, read the CCC valuation report, line by line and how projected sold and typical negotiation deductions work.

How long does the insurer have to pay a total loss in Delaware?

Short answer: Under Delaware rules, payment is due within 30 days after the settlement is signed. A decision is due within 30 days after proof of loss.

Acknowledge and respond to claim communications from insureds within 15 working days. Begin the investigation within 10 working days after notice of loss. Affirm or deny coverage or the claim, or explain in writing why that is not yet possible, within 30 days after proof of loss. Pay a settled claim within 30 days after the settlement agreement is fully executed, a final court order, receipt of all documentation with the investigation complete, or the last day to appeal an arbitration award.

Source: 18 DE Admin. Code 902 §§ 3.1.2, 3.1.3, 3.1.5; 18 DE Admin. Code 903 § 5.1

Compare claim deadlines in every state.

Can you negotiate a total loss offer in Delaware?

Short answer: Yes. You can reject the offer in writing, ask for the full valuation report and the reason for each deduction, and send your own evidence. The Delaware Department of Insurance, Consumer Services takes complaints about claim handling.

The owner can dispute in writing and request the basis for the compromise offer (Reg. 902 § 3.1.13), then file a complaint with the Delaware Department of Insurance. Auto policies must require the insurer to arbitrate claims for damage to a motor vehicle, including the insured vehicle and loss of use, on the claimant's written request to the Insurance Commissioner. Each case is heard by three panel members, at least one an attorney (the DOI describes an attorney and two adjusters). The DOI says arbitration is available only after informal attempts fail and lists a $50 filing fee for auto cases. Arbitration is optional for both sides, and the losing party may appeal de novo to Superior Court within 30 days (21 Del. C. § 2118(j)). The owner can also use the policy's appraisal clause or go to Justice of the Peace (small claims) court.

1. Ask the adjuster in writing for the complete valuation report and the list of comparable vehicles.
2. Check it line by line: negotiation deductions, condition ratings, comparables, tax and fees. How to read the report.
3. Send a written rebuttal with your evidence and a specific number. How to dispute a total loss valuation.
4. If you still disagree on a claim under your own policy, consider the appraisal clause.
5. If the insurer does not follow the rules above, file a complaint with the state.

How long do you have to sue over a totaled car in Delaware?

Short answer: Generally 2 years to sue for damage to your car (10 Del. C. § 8107). Your policy may set a shorter limit for suing your own insurer.

Property damage claims in Delaware generally must be filed within 2 years. Your policy may set a shorter deadline for suing your own insurer; check its "legal action against us" clause.

Source: 10 Del. C. § 8107 (wrongful death or injury to personal property: 2 years from accrual)

How to file an insurance complaint in Delaware

Short answer: File a free complaint with the Delaware Department of Insurance, Consumer Services online. It asks the insurer for a written response, but it cannot set the amount you are owed.