Oregon Car Insurance

The state of Oregon may forever be known as the home of the Oregon Trail, but the transportation system has come a long way over the last 200 years. With more than 14,900 miles of road, Oregon has a large transportation system with plenty of room for the state's growing population and growing demands.

If you call the Beaver State home, it's important to comply with all of the rules of the road to avoid fines and penalties. One of the laws that you're obligated to comply with concerns auto insurance. You'd expect others to pay for damages they cause to you in an accident, and they would expect the same.

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Here's what you should know about insurance and your obligations as a vehicle owner.

Is auto insurance mandatory in Oregon?

Auto insurance legislation is drafted and enforced by the state. Some states don't actually require auto insurance. In these states, there are different methods that vehicle owners can choose to pay for damages that they cause.

In Oregon, however, state officials have passed a mandatory auto insurance law that doesn't give alternative options. The mandatory auto insurance law says that all owners of private passenger vehicles that have Oregon license plates must buy a minimum amount of liability insurance.

Without the required coverage, vehicles can't be legally driven or parked on public property. Driving the vehicle or parking the vehicle on a public road or lot can result in serious penalties.

What type of coverage is required by law?

The limits that you're required to carry are called state minimums. You can't carry anything less than the minimums, but you're free to raise these limits for an additional cost.

What makes the coverage requirements unique in Oregon is that you must have both third-party liability protection and also no-fault coverage.

Here's a list of coverage requirements:

• Bodily injury liability
• Property damage liability
• Personal injury protection
• Uninsured motorist

What are bodily injury liability and property damage liability?

Bodily injury (BI) is third-party coverage that pays for reasonable medical expenses and other rehabilitation costs that are incurred by another driver or vehicle occupant. BI liability doesn't pay for your own expenses or for someone who lives in your home.

Property damage (PD) is the second component of liability coverage that's available to pay for repair or replacement of a vehicle or object that you damage. PD doesn't pay to repair your own home, real property, or vehicle. It also doesn't pay for property owned by someone in your home.

Limits required in Oregon are as follows:

• Bodily injury: $25,000 per person, $50,000 per accident
• Property damage: $20,000 per accident
• Liability limits are written: 25/50/20

What is personal injury protection?

Oregon is one of the twelve "no-fault" states in the United States. In no-fault states, policyholders are required to carry benefits that they can claim against when they have medical bills that they've incurred after an auto accident.

This no-fault status is why Oregon drivers are required to carry a unique coverage called personal injury protection. Personal injury protection (PIP) is a first-party coverage that pays for reasonable medical expenses, rehabilitation costs, and other related expenses for up to one year after the crash.

In Oregon, you can carry no less than $15,000 per person in PIP to comply with the no-fault law. Higher limits are available as well.

Why is Oregon a no-fault state?

Oregon is a unique state because it doesn't have what's called "a true no-fault system." Instead, experts in personal injury law call Oregon an "add-on state," where a variation of the no-fault structure is used for first-party claims. In Oregon, there are no restrictions on lawsuits like there would be in a true no-fault state.

Even though there are no restrictions on lawsuits, add-on states like Oregon have adopted no-fault provisions to cut down on the cost of settling personal injury claims. It has also proven to shorten settlement times and to reduce the number of cases that are taken to court, which helps the judicial system.

What is an uninsured motorist?

Even though you're required to carry first-party coverage there are still instances where you might need protection against an uninsured motorist. That's why state officials have also made uninsured motorist (UM) protection mandatory. UM isn't a coverage that you can reject in order to save on premiums.

UM coverage will pay if you're in a hit-and-run accident, if there is a phantom vehicle, or if someone who doesn't have insurance hits you. You can collect for both economic damages and non-economic damages, like pain and suffering.

The required limits are as follows:

• Uninsured motorist – $25,000 per person/$50,000 per accident
• Underinsured motorist – Available if you carry higher UM limits

Is it necessary to raise your UM limits for added protection?

With all of the coverage requirements, it might be overwhelming to think about spending more to raise limits. It's best to consider the risk and if it's necessary before you automatically select bare minimums. Since uninsured motorists are a problem all over the country, you need to research the problem in your area.

Based on the most recent statistics, around 9.0 percent of drivers in Oregon don't have insurance. If you consider the fact that there are nearly 4.3 million registered cars in the state, that is a lot of risk. In fact, if you do the math, there are more than 378,000 uninsured cars on Oregon's roads.

What happens if you don't carry insurance?

Driving without insurance is a risk, but it's a risk that a huge portion of the population takes daily. Even if you're tempted to do it, think twice before you start your engine.

You might think that the only consequence is having an uninsured loss, but there are other legal consequences that you can't overlook.

Here are some penalties to be aware of:

• Fines between $130 and $1,000
• Presumptive fine for first offense of $260 without a court appearance
• Proof of financial responsibility for three years (SR-22)

Does the state monitor your insurance coverage?

You don't need to be pulled over for violating a traffic law to get caught driving uninsured. The Department of Motor Vehicles in Oregon monitors compliance and has a random selection system in place.

Each month, vehicles are selected and the owners are asked to provide their policy number. The coverage is then verified by the DMV.

If you ignore the request, the DMV can suspend your license. If you don't have coverage to verify, you must show proof of your insurance with an SR-22 filing for three years before your license will be reinstated. You may also be subject to paying a fine for reinstatement.

How much is auto insurance in Oregon?

If you're budgeting, it can help to see how much the average consumer pays for insurance. However, you should know that insurance rates are personalized, and they can vary dramatically based on your risk profile.

Even though liabilities, such as uninsured motorist and personal injury protection, are required in Oregon, the state's premiums still only rank 21st in the country. Average expenditures for full coverage are $783.46 per year.

Will a lapse in coverage affect my insurance rates?

If you have already canceled your insurance or if you have a lapse for non-payment, be prepared to pay the consequences in the form of higher auto insurance rates. Insurance companies are all about risk, and people who go without insurance for even a month take on more risk than those who are insured.

Here are a few ways premiums can go up:

• Loss of prior insurance discounts through the new carrier
• Loss of loyalty discounts through your previous carrier
• Required payment of an SR-22 filing fee for three years
• Status as a high-risk driver due to citations for driving while uninsured

Other Types of Coverage Available

You won't just be given the option to buy mandatory coverage. You can also select other coverage options that will help you pay for your own financial losses after a crash or other related incidents.

Here's a list of other coverage types:

• Comprehensive
• Collision
• GAP
• Roadside assistance
• Towing
• Rental car

Auto insurance is a necessary expense. If you want to save money on your premiums, the best thing to do is to shop around.

You can find competitive rates for all of the required coverage in Oregon by using a rate comparison tool. Enter your information and see what the respected carriers will charge you.

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