Oregon Car Insurance Requirements

Oregon's mandatory car insurance rules, how coverage will affect a car accident claim, and the penalties for driving without insurance in Oregon.

In Oregon, as in every state, car insurance is sure to play a big part in any claim brought after a traffic accident. And Oregon, like most states, requires vehicle owners and drivers to maintain certain types and amounts of insurance coverage. Read on for the details of Oregon's auto insurance rules, how coverage is likely to affect a car accident case, and the kinds of penalties you can expect if you drive without insurance in the state.

Oregon is a "Fault" Car Accident State

Oregon follows a traditional "fault"-based system when it comes to financial responsibility for losses stemming from a car accident: injuries, lost income, vehicle damage, and so on. This means that the person who was at fault for causing the car accident is also responsible for any resulting harm (from a practical standpoint, the at-fault driver’s insurance carrier will absorb these losses, up to policy limits).

In Oregon, a person who suffers any kind of injury or damage due to an auto accident usually can proceed in one of three ways:

  • by filing a claim with his or her own insurance company, assuming that the loss is covered under the policy (in this situation, the injured person's insurance company will likely turn around and pursue a subrogation claim against the at-fault driver’s carrier)
  • by filing a third-party claim directly with the at-fault driver’s insurance carrier, or
  • by filing a personal injury lawsuit in civil court against the at-fault driver.

Note: In no-fault car insurance states, a claimant doesn't usually have this same range of options. After a car accident in a no-fault state, you must turn to the personal injury protection coverage of your own car insurance policy for payment of medical bills and other out-of-pocket losses, regardless of who caused the crash. Only if your injuries reach a certain threshold can you step outside of no-fault and make a claim directly against the at-fault driver. But Oregon drivers don't need to worry about no-fault after an in-state accident.

Car Insurance Requirements in Oregon

The required minimum amounts of car insurance coverage in Oregon are:

  • $25,000 liability coverage for bodily injury or death of one person in an accident caused by the owner/driver of the insured vehicle
  • $50,000 liability coverage for total bodily injury or death liability in an accident caused by the owner/driver of the insured vehicle
  • $25,000 liability coverage for property damage per accident caused by the owner/driver of the insured vehicle
  • $15,000 in personal injury protection coverage, per person, and
  • uninsured motorist coverage of $25,000 per person and $50,000 total per accident.

So, what do these different coverage requirements mean?

Liability coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Remember that liability coverage doesn't apply to your own injuries or vehicle damage after a Oregon car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, collision coverage (optional in Oregon) can pay for repairs to (or replacement of) your damaged vehicle after a car accident. Note that collision or comprehensive might be required under the terms of a vehicle lease or financing agreement.

Personal injury protection coverage (or PIP) usually pays medical expenses and certain other out-of-pocket losses after an accident. It normally covers the policyholder and passengers in the policyholder's vehicle (unless they have their own coverage).

Uninsured motorist (UM) coverage protects you and your passengers if the at-fault driver has no insurance, or if you're injured in a hit and run accident. Keep in mind that UM coverage will not apply to vehicle damage.

Penalties for Driving Without Insurance in Oregon

If you get caught driving without insurance in Oregon, you could be fined, lose your driving privileges, or have your vehicle towed, depending on the circumstances of the offense.

If you are convicted of driving without insurance, you will have to file proof of insurance with the state's Department of Motor Vehicles (DMV) for three years. If you are in an accident, and you are uninsured, your driving privileges will likely be suspended for one year.

Of course, these penalties will likely pale in comparison to the financial hit you could take if you're in a car accident and you don't have car insurance.

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