Driving Without Insurance in Oregon

If you live in Oregon or are planning to travel to Oregon soon, it’s important to know what the auto insurance laws and requirements are in the state.

If you are also looking for the best auto insurance rates in Oregon, start comparison shopping by entering your ZIP code above!

Auto Insurance Laws and Requirements in Oregon

Oregon requires that every car insurance policy that is sold in the state of Oregon includes the following:

• $25,000 per person (UIM) coverage
• $50,000 per crash for bodily injury
• $10,000 for property damage
• $15,000 for personal injury protection

You will need to make sure that you have at least the above coverage levels to avoid a fine or even worse.

– Why You Need Insurance

This question should be obvious, but it helps to think about what insurance does.

Insurance should be considered like another bank account. It is there when you need the money that is paid out specifically for instances of negligence that you commit.

Even if you didn’t mean to do it, when you are driving, you have a responsibility to be safe on the road for both yourself, your passengers, and others on the road.

When you fail to yield at a stop sign or don’t follow any specific road signs or other warnings, you are negligent.

Negligent is a legal term meaning that the traffic violation was your fault. When this causes an accident, your insurance company will have to pay for the damages to the innocent parties.

Oregon is also a “fault state.” Being in a “fault state” means that you are liable for damages and injuries caused when it was your fault.

– What is personal injury protection?

https://www.youtube.com/watch?v=Nhjaiz6wzCQ

Personal injury protection (sometimes known as “PIP”) is extra insurance protection that you can purchase to cover any unexpected costs not covered by your normal insurance plan.

It protects you from lawsuits should there be an accident that you are at fault for and your coverage is not enough to cover damages.

Oregon is considered a PIP state which offers up to one year in wage loss coverage and $15,000 in no-fault medical coverage.

This is a great deal to residents of Oregon who are the victim of someone else’s negligence.

But if you cause an accident that results in injury or loss of wages to someone else, you will have to pay out-of-pocket unless you have PIP insurance.

Types of Coverage

There are four major types of auto insurance coverage that you should be aware of when shopping and comparing policies for driving in Oregon.

— Bodily Injury Liability

Bodily injury liability covers any expenses that might be incurred from an accident that you are negligent with that results in the bodily injury of others.

This liability insurance covers any resulting medical procedures that the person may go through as a result of the accident, as well as any follow-ups from medical procedures.

Having this coverage is required, and it will avoid you having to pay from out of your pocket, which could result in financial disaster.

— Property Damage Liability

https://www.youtube.com/watch?v=_uRrcKMqKwg

Like personal injury liability coverage, this coverage covers any damage you inflict on the property of others due to your negligence on the road.

The amount of damage may vary depending on the value of the vehicle, so it is important that you carry at least the minimums.

— Personal Injury Protection

Personal injury protection involves payment for personal injury that goes beyond what is covered by the other categories.

It can kick in when your insurance is not enough or when there are situations that require additional expenses such as time lost from work or other expenses.

— Uninsured/Underinsured Motorist

Uninsured and underinsured insurance covers damages or injuries when the another driver is not carrying sufficient insurance to cover the accident. This insurance is required in Oregon.

How will law enforcement know if I’m driving without insurance?

Some people try to skirt within the edge of the law or perhaps they just don’t have enough money to cover their insurance premiums in a given month.

Despite the reason, it is illegal not to carry insurance in every state except two: Virginia and New Hampshire. Both of these states do require some form of proof, however, that you are a responsible driver and can handle the costs if you are negligent in an auto accident.

The problem with driving without insurance is that there are very stiff penalties if you are caught driving in this situation.

Not only are you required to carry adequate state minimum insurance, but you also have an obligation to have proof of insurance when you are stopped by a police officer.

This article about uninsured drivers in the state of Oregon should convince you that it is not a risk worth taking to drive without proper coverage.

For one thing, if you drive without coverage in Oregon, you have committed a crime that is punishable up to $427 on the first offense with possible license suspension.

Once this happens, you may only be eligible to obtain future insurance that is in an indemnity category known as SR-22 insurance. It is typically more costly and also ruins your good driving record for up to three years.

Other events that may occur if you fail to keep your premiums up are:

• Legal fines
• Suspended license
• Jail time
• Vehicle towed

The information on the Oregon.gov site provides you with valuable data on the minimum required insurance coverage for your vehicle when driving in or through Oregon, as well as the various fines that you might receive if you are in violation of this ordinance.

The Effects of Driving Without Insurance

As mentioned before, some of the additional things that may occur when you are caught driving without coverage include:

• Blemished driving record
• Increase in premiums
• High risk insurance policies

You don’t want to take the legal and financial risk that no auto insurance involves. Even if you get away with driving without insurance, time will eventually catch up with you and you will be pulled over for some reason and fined for having no insurance.

Despite the costly fines, you will find yourself paying a much higher premium than you did before and running the risk of tarnishing your driving record and even losing your license.

No auto insurance and no driver’s license could result in even worse situations when your employer finds out about it and fires you because you no longer have reliable transportation to your job.

It’s just too big of a risk to take when your livelihood depends on your income which may require you to drive daily to a job unless you work at home. Even if you do work at home, you would feel like a prisoner in your house when you are told you no longer have the privilege of driving!

Guard Against Policy Lapse at All Costs

The key to keeping you driving record clean is to make sure you carry adequate insurance, pay your premiums on time and don’t let your policy lapse.

– Common Scenarios for Policy Lapse

• Forgot to pay the bill
• Can’t afford the bill
• Sold your car
• Car broke down
• Car in an accident
• Looking for a new insurance company

All of these situations are things that could genuinely occur at times in someone’s life. However, none of them are good excuses for letting your insurance lapse.

Even if you are looking for a new insurance company, you should keep all premiums paid up with your other policy until such time that you receive your new policy from your new insurer in your hands.

It’s important to avoid any lapse in coverage. If you do some research on your own, you will be amazed at the number of times the statistics pan out, and people have an accident during the gap period when their insurance was not in force.

Read these tips to avoid a lapse in insurance coverage.

More Tips on Finding Car Insurance

Shopping for car insurance is easy when you have great resources like this site that you are on now.

We strive to provide our readers with the very best in resources about insurance in various states as well as sound tips from industry experts and others on how to avoid a disaster when on the road.

In the end, however, it is up to you to keep your premiums up-to-date, while shopping for better insurance. Check for discounts if you qualify and keep your eyes on the road to reap the benefits of a great driving record.

Start comparison shopping and saving on auto insurance rates today! Enter your ZIP code below to get started!