Auto Insurance Requirements in Oregon
All drivers in Oregon must carry car insurance with bodily injury and property damage coverage, personal injury protection and uninsured motorist coverage. The state sets limits on these coverages, too, which means you'll need to be careful when purchasing a policy.
Oregon's financial responsibility law
The Oregon Department of Motor Vehicles enforces its financial responsibility law through its Automobile Liability Insurance Reporting (ALIR) system, which is a verification program. Every month, ALIR randomly selects vehicle registrations in the state and asks the selected owners to provide their insurer's name and policy number. If you're caught driving without insurance — through ALIR or when a law enforcement officer pulls you over — then you could face consequences.
Oregon required car insurance coverage
Required min. limits | |
|---|---|
| $25,000 per person/$50,000 per accident | |
| $20,000 per accident | |
| $15,000 per person | |
| $25,000 per person/$50,000 per accident |
Oregon car insurance minimum requirements
You can fulfill your financial responsibility in Oregon by purchasing a car insurance policy that includes bodily injury and property damage coverage, personal injury protection and uninsured motorist coverage. The policy also has to meet the minimum coverage amounts:
Bodily injury (BI): $25,000/person, $50,000/accident
Requirement
- $25,000 per injured person
- $50,000 per accident for two or more injured persons, combined
Covers
- Your personal assets
- Legal fees in the event the other party sues you, only up to the stated limit
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Does not cover
- Your own medical bills
Property damage (PD): $20,000/accident
Requirement
- $20,000 per accident
- Higher limits are available but vary by insurer
Covers
- Everything from the other driver's car that's damaged
- Other property that is damaged in the accident (buildings, fences, etc.)
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Personal injury protection (PIP): $15,000/accident
Covers
- Your own medical expenses, no matter who causes the accident
The minimum PIP covers you for up to $15,000 per accident and includes these benefits:
- Income loss: If your injuries prevent you from working, you can claim up to 70% of the wages that 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 (for example, cleaning your house and walking the dog), then you're entitled to as much as $30 a day. However, it won't cover the first two weeks of your disability.
- Funeral expenses: This benefit kicks in when a covered person (for example, the policyholder or a household family member) dies as a result of the accident. Your Oregon insurer will pay up to $5,000 for funeral and burial expenses, on top of the $15,000 limit.
Despite the PIP, or no-fault, coverage requirement, Oregon is not considered a no-fault state. In other words, even with PIP coverage, you still retain full rights to sue the negligent driver for compensation for your loss. In other states, such as New York, you can only sue for economic losses, such as lost wages and extra medical expenses. In Oregon, you can take the other party to court for these quantifiable bills, plus intangible harm like pain and suffering.
Uninsured motorist bodily injury (UMBI): $25,000/person, $50,000/accident
Covers
- Your medical bills when you are hurt in an accident caused by a driver who has insufficient liability insurance
- Your UMBI limits should never be higher than your BI on the same policy
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Cheapest companies in Oregon for minimum liability
Optional coverages in Oregon
Most insurance agents and government officials in the Beaver State will tell you that the bare-minimum auto insurance will not fully cover you. Apart from purchasing higher limits, you may also want to consider including one of the following optional types of coverage to make up a more comprehensive policy:
Uninsured motorist property damage (UMPD): Oregon motorists have the option to include UMPD in their policy. While UMBI covers your medical bills in case the at-fault driver is not properly insured, UMPD pays your car repair bills following an accident. Higher limits are available, but your UMPD coverage amount can't be higher than your PD limits.
Physical damage: This portion of your policy includes two coverages: collision and comprehensive. In short, they take care of your car's repairs, regardless of who is at fault, following a collision or another type of incident. But you'll need to choose a deductible, which is the amount you'll have to pay out of pocket before insurance kicks in. This will affect your premiums.