Oregon Auto Insurance: Understanding The State's Mandatory Coverage

Like most US states, Oregon requires drivers to have a certain level of auto insurance coverage. The minimum coverage includes $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $20,000 for property damage per accident. Oregon also requires drivers to have uninsured motorist coverage and personal injury protection (PIP).

Minimum liability coverage

In Oregon, drivers must carry a minimum amount of auto insurance coverage to legally operate a vehicle. This includes liability insurance, which covers bodily injury and property damage. The minimum liability coverage requirements in Oregon are as follows:

• Bodily injury liability: $25,000 per person and $50,000 per accident. This coverage pays for injuries to others if you are at fault in an accident, including medical expenses and legal fees if the other party sues you. It also covers bodily harm sustained by passengers in your vehicle.
• Property damage liability: $20,000 per accident. This coverage pays for damage to another person's property, such as their vehicle or other property like buildings or fences.

Liability insurance does not cover repairs to your own vehicle or medical expenses for yourself or your passengers. It is also important to note that the minimum coverage requirements may not be sufficient for all drivers, and it is recommended to consider additional coverages or higher limits.

The state of Oregon operates under an at-fault system, meaning the person responsible for the accident is liable for the damage. This makes liability insurance particularly important, as it can help cover the costs of damages if you are found at fault.

While collision and comprehensive insurance are not mandated by the state, lenders may require this coverage if you are financing or leasing a vehicle. Additionally, drivers can opt for additional coverages, such as uninsured motorist property damage and medical payments coverage, for more comprehensive protection.

Uninsured/underinsured motorist coverage

In Oregon, the law mandates that every motor vehicle liability policy include uninsured motorist coverage. This coverage extends to both bodily injury and death caused by accidents arising from the ownership, maintenance, or use of a motor vehicle. The state sets specific minimum requirements for uninsured motorist bodily injury (UMBI) coverage, which are $25,000 per person and $50,000 per accident. These limits are designed to ensure that individuals can receive adequate compensation for their injuries and protect their assets in the event of an accident.

While UMBI covers medical bills resulting from accidents caused by uninsured or underinsured drivers, Uninsured Motorist Property Damage (UMPD) coverage is an optional extension. UMPD provides financial protection for repairing or replacing your vehicle after an accident with an uninsured driver. It's important to note that UMPD coverage cannot exceed your property damage (PD) limits, which are also set at a minimum of $20,000 per accident in Oregon.

When purchasing auto insurance in Oregon, it's essential to consider your specific needs and choose coverage that provides adequate protection. While the state mandates minimum requirements, individuals may benefit from higher coverage limits or additional optional coverages. Consulting with a reputable insurance provider can help ensure that your policy meets your unique circumstances and provides the necessary financial security in the event of an accident.

By understanding the specifics of uninsured/underinsured motorist coverage, Oregon drivers can make informed decisions about their auto insurance policies. This knowledge empowers them to protect themselves, their vehicles, and their finances in the unfortunate event of an accident involving an uninsured or underinsured driver.

Personal injury protection (PIP)

Oregon law requires a minimum of $15,000 of PIP coverage per person injured in an accident, which can be used to pay for medical expenses, lost wages, and other related costs. This includes all reasonable and necessary medical expenses incurred within two years of the accident, up to the policy limit. PIP also covers 70% of any wages lost due to injury, up to a maximum of $3,000 per month for up to 52 weeks.

In addition, PIP provides coverage for several other expenses that may result from a car accident, including funeral expenses of up to $5,000, household replacement services of up to $30 per day for up to 52 weeks, and childcare during hospitalization of $25 per day until the injured person is able to return to work or payments reach $750.

While PIP is broad in its coverage, insurers may require an assessment by a doctor of their choice, and can dispute a claim if the doctor determines that certain procedures are unnecessary or that the insured is healthy enough to work. Filing a PIP claim in Oregon will not increase insurance premiums, and there is no threshold that needs to be met before suing the at-fault driver.

Collision coverage

In the state of Oregon, drivers are required to have a minimum amount of auto insurance coverage, which includes liability coverage for property damage and bodily injury. While collision coverage is not legally required, it is often considered essential for comprehensive financial protection in the event of a collision.

In Oregon, collision coverage is subject to a deductible, which is the amount you must pay out of pocket before your insurance company covers the rest. The deductible typically applies separately to each occurrence, so you will need to pay it each time you file a claim. The deductible amount can vary but usually ranges from $500 to $1,500, with $500 being the most common choice.

While not mandatory, collision coverage is often recommended, especially if you are leasing or financing your vehicle. In these cases, your lender may require collision coverage to protect their investment. Even if you own your vehicle outright, collision coverage can provide valuable financial protection in the event of an accident. Without it, you would be responsible for covering the full cost of repairs or replacement out of your own pocket.

When deciding whether to opt for collision coverage, there are several factors to consider. These include the value of your vehicle, your ability to pay for repairs or a replacement vehicle out of pocket, and whether your vehicle will be in storage for an extended period. By weighing these factors, you can determine if collision coverage aligns with your financial needs and provides peace of mind in the event of a collision.

Comprehensive coverage

The deductible, which is the amount you pay out of pocket before the insurance company covers the rest, typically ranges from $250 to $1,000 for comprehensive and collision coverage. Choosing a higher deductible can help lower your insurance premium. However, it is important to ensure you are prepared to pay the deductible amount in the event of a loss.

While comprehensive coverage is not mandatory in Oregon, it is an important option to consider to ensure you have adequate protection for your vehicle. It is a valuable addition to your auto insurance policy, especially when combined with collision coverage, to provide financial peace of mind in the event of unexpected incidents.

In Oregon, the average cost of full coverage auto insurance, which includes comprehensive and collision coverage, is $176 per month. This is significantly higher than the state's average monthly rate of $91 for minimum coverage insurance, which does not include comprehensive or collision coverage.

Frequently asked questions