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HB406 • 2025

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Bush
Last action
2026-06-23
Official status
Passed 6/23/26
Effective date
Not listed

Plain English Breakdown

The effective date depends on when the Governor signs the bill into law, which has not happened yet according to the provided status 'Ready for Governor for action'.

Delaware Auto Insurance Repair Choice Law

This law stops car insurance companies from forcing drivers to use specific repair shops, workers, or businesses as a condition for paying their claims.

What This Bill Does

  • Prohibits insurance carriers from requiring that auto glass, repair, or replacement work be done by a particular facility, individual, or business establishment before they will pay a claim.
  • Updates legal language in Title 18 of the Delaware Code to match state drafting standards.

Who It Names or Affects

  • Insurance companies operating in Delaware, whether domestic or foreign.
  • Agents and employees working for those insurance companies.
  • Car owners who file claims for vehicle repairs or glass replacement.

Limits and Unknowns

  • This law applies only to policies issued, renewed, modified, altered, amended, or reissued on or after the effective date.
  • The exact start date is not listed in this text; it begins 180 days after the Governor signs the bill into law.

Bill History

  1. 2026-06-23 Delaware General Assembly

    Passed By Senate. Votes: 21 YES

  2. 2026-06-17 Delaware General Assembly

    Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 2 Favorable, 6 On Its Merits

  3. 2026-06-17 Delaware General Assembly

    Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 2 Favorable, 6 On Its Merits

  4. 2026-06-09 Delaware General Assembly

    Passed By House. Votes: 32 YES 2 NO 1 NOT VOTING 6 ABSENT

  5. 2026-06-09 Delaware General Assembly

    Assigned to Banking, Business, Insurance & Technology Committee in Senate

  6. 2026-05-19 Delaware General Assembly

    Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 7 Favorable, 2 On Its Merits

  7. 2026-05-07 Delaware General Assembly

    Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.
This Act updates auto insurance protections by prohibiting carriers from limiting repair or replacement work to particular facilities, individuals, or business establishments as a condition of payment of a claim.
This Act makes technical corrections to conform the statute with the Delaware Legislative Drafting Manual.

Current Bill Text

Read the full stored bill text 
Legislation Document

SPONSOR:

Rep. Bush & Sen. Mantzavinos

Reps. Osienski, Snyder-Hall, Berry, Carson, Harris; Sens. Richardson, Seigfried

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 406

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 3916, Title 18 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 3916. Unfair trade practices.

No insurance company, domestic or foreign, or any agent or employee

shall

may

require that automobile

glass

repair or replacement work be performed by a particular facility,

individual

individual,

or business establishment as a condition of payment of a claim.

Section 2. This Act is effective 180 days after its enactment into law and applies to all policies, contracts, or certificates issued, renewed, modified, altered, amended, or reissued on or after the effective date.

SYNOPSIS

This Act updates auto insurance protections by prohibiting carriers from limiting repair or replacement work to particular facilities, individuals, or business establishments as a condition of payment of a claim.

This Act makes technical corrections to conform the statute with the Delaware Legislative Drafting Manual.