Delaware auto-insurance task force advances recommendations on uninsured drivers, market competition and consumer protections

Co-chair State Senator Spiroz Mansovinos convened the Automobile Insurance Reform Task Force in a hybrid meeting and led consideration of a broad package of recommendations meant to reduce the number of uninsured motorists and broaden competition in Delaware's auto‑insurance market.

The task force approved several recommendations by roll‑call vote. Members agreed to encourage the Division of Motor Vehicles (DMV) to establish higher minimum monthly payment thresholds for individuals enrolled in DMV payment plans for fines associated with driving without insurance and to explore community‑service alternatives where feasible. The group also approved requiring annual reporting by DMV on Delaware's uninsured motorist rate once a real‑time verification system is implemented and directed staff to study a limited, means‑tested low‑cost "last chance" program to re‑enter drivers into the insurance market rather than immediately establishing such a program.

Why it matters: Members said identifying uninsured motorists and increasing reentry into the voluntary market could reduce rates by increasing the insured pool and decreasing uncompensated losses. At the same time, several members cautioned that implementation details'including funding, eligibility, means testing, and whether a program would lower premiums'require further study before legislative or regulatory change.

During a lengthy discussion about the commercial market, agents including Travis Downs of Williams Insurance told the panel that lists of "18 groups and 24 companies" understate limitations consumers face because underwriting is often done by non‑consumer‑facing underwriting entities; agents must be appointed to specific underwriters, and many parent companies control which quotes are available. Members asked the Department of Insurance to investigate strategies to reduce market concentration and determine why insurers are not writing more Delaware business.

On consumer protection, the task force adopted a recommendation to develop a consumer "bill of rights" to improve shopper education about coverage differences (for example, the distinction between personal and commercial coverages and the purpose of FR‑19 versus SR‑22 filings). Members also supported further work to prevent fraud by repair shops and consumers (including misuse of AI images and recycled airbags) and asked the Department of Insurance to circulate draft legislation it has prepared that would prevent carriers from conditioning claim payments on repairs performed at particular facilities.

Public comment: Gina Rotunno of the National Association of Mutual Insurance Companies urged the task force to rely on actual premium data from the National Association of Insurance Commissioners or the Delaware Department of Insurance when evaluating underwriting changes and warned that restricting socioeconomic factors in underwriting could reduce available coverage and raise premiums for many consumers.

Next steps: The task force asked agencies (DMV, Department of Insurance) to report back with feasibility and cost information on the options discussed, to refine definitions (for example, "high‑risk" drivers), and to provide an implementation plan or further study on the low‑cost pilot before statutory proposals. Members scheduled follow‑up meetings to finalize the report and circulated a DOI draft bill on repair‑choice protections.

Votes at a glance: The panel approved multiple recommendations by roll call during the meeting (see provenance and actions). The chair said 11 affirmative votes are required to approve any motion under the concurrent resolution governing the task force; the motions advanced in this meeting met that threshold.

The task force adjourned after public comment and will reconvene to consider remaining recommendations and the updated draft report.