Understanding Oregon's Auto Insurance Coverage Minimums

Oregon requires drivers to carry a minimum level of car insurance coverage. This includes liability coverage, personal injury protection (PIP), and uninsured and underinsured motorist coverage. The minimum coverage amounts are $25,000 for bodily injury liability per person and $50,000 per accident, as well as $20,000 for property damage liability per accident. Uninsured motorist coverage is required at $25,000 per person and $50,000 per accident, while personal injury protection is mandatory at a minimum of $15,000. These coverages provide financial protection in the event of accidents and injuries on the road.

Bodily injury liability insurance

In Oregon, the minimum bodily injury liability insurance requirements are $25,000 per person and $50,000 per accident. This means that your insurance will cover up to $25,000 in medical expenses for each injured person, with a maximum of $50,000 for all injuries in a single accident. It's important to note that these limits only apply to the injuries of others and do not cover your own medical expenses or those of your household members.

While Oregon's minimum requirements provide a basic level of protection, experts recommend purchasing higher coverage limits to adequately address the financial risks associated with car accidents. The recommended bodily injury liability coverage is at least $100,000 per person and $300,000 per accident, or enough to cover your net worth. This ensures that you are not left financially vulnerable in the event of a significant accident.

It's also worth noting that bodily injury liability insurance does not cover damage to vehicles or property. If you want to include protection for these aspects, you would need to add property damage liability coverage to your policy.

Property damage liability insurance

It's important to note that property damage liability insurance does not cover damage to your own vehicle. If you want to protect yourself financially in the event of damage to your car, you may want to consider adding optional coverages to your policy, such as collision and comprehensive insurance. These types of insurance will cover the cost of repairs to your car, regardless of who is at fault in an accident.

In addition, Oregon requires drivers to have uninsured motorist property damage (UMPD) insurance. This type of insurance covers your car repair bills if you are in an accident with an uninsured or underinsured driver. The coverage amount for UMPD cannot be higher than your property damage liability limits.

While the state sets minimum coverage requirements, higher limits are available and may be worth considering to ensure you have adequate protection in the event of an accident. It's always a good idea to review your insurance policy carefully and consider your specific needs when determining the appropriate coverage amounts.

Oregon operates under an at-fault system, meaning the person responsible for the accident is liable for the damage. The state's financial responsibility law is enforced by the Oregon Department of Motor Vehicles through its Automobile Liability Insurance Reporting (ALIR) system. This system randomly selects vehicle registrations each month and verifies that the selected owners have the required insurance coverage. Driving without insurance in Oregon can result in fines, suspension of driving privileges, vehicle impoundment, and other penalties.

Personal injury protection (PIP) insurance

In Oregon, drivers are required to have a minimum of $15,000 in PIP coverage. This includes coverage for your own medical expenses, no matter who causes the accident. The minimum PIP coverage in Oregon includes the following benefits:

• Income loss: If your injuries prevent you from working, you can claim up to 70% of the wages you would have earned, subject to a maximum of $3,000 per month.
• Essential services: If your injuries prevent you from performing essential daily activities, you're entitled to up to $30 per day. However, it won't cover the first two weeks of your disability.
• Funeral expenses: If a covered person dies as a result of the accident, your Oregon insurer will pay up to $5,000 for funeral and burial expenses, in addition to the $15,000 limit.

It's important to note that PIP coverage does not include liability coverage, which helps pay for bodily injury or property damage caused to others. It also does not cover physical damage to your car or injuries to other vehicles or their passengers.

Uninsured motorist property damage (UMPD) insurance

In Oregon, motorists have the option to include Uninsured Motorist Property Damage (UMPD) insurance in their policy. UMPD covers the cost of repairing or replacing your car if it is damaged by a driver with insufficient insurance. It is important to note that UMPD only covers damage caused by a driver with little or no insurance, whereas collision coverage applies to any damage caused by a collision with another vehicle or object, regardless of fault.

UMPD is generally combined with uninsured motorist bodily injury coverage, which pays for injuries caused by a crash with an at-fault driver who has no car insurance. This type of coverage is required in some states, optional in several, and unavailable in about half of all states. In Oregon, UMPD is optional, and drivers can choose to include it in their policy.

UMPD covers damage to your car or other property, such as fences, caused by an uninsured driver. It is important to note that hit-and-run accidents may be excluded from UMPD coverage, depending on the state. In some states, UMPD will only cover a hit-and-run if the driver is identified. Additionally, UMPD coverage limits usually vary by state, with some requiring a minimum amount. You can usually increase your coverage above the minimum, but your UMPD coverage amount cannot be higher than your property damage liability limits.

When considering whether to include UMPD in your policy, it is important to note that if you already have collision coverage, UMPD may be unnecessary. Collision coverage pays for repairs to your vehicle, regardless of who is at fault. However, if you are concerned about keeping your premium as low as possible, UMPD may be a more affordable option, especially if you have a pricey car.

In summary, UMPD is optional in Oregon and can provide valuable protection if you are involved in an accident with an uninsured or underinsured driver. It covers the cost of repairing or replacing your car and, in some cases, other property damaged in the accident. However, it is important to consider your specific needs and the coverage already provided by your existing policy when deciding whether to include UMPD in your Oregon auto insurance policy.

Collision insurance

While collision insurance is not required by law, drivers who have not fully paid off their cars may be required by lenders to carry it to protect their investment. If you are still paying off your car through a loan or lease, you will likely need to include collision insurance in your policy.

The cost of collision insurance in Oregon will depend on various factors, including your age, driving record, and the type of car you own. To get the cheapest rates, it is recommended that you shop around and compare quotes from different insurance providers.

Frequently asked questions