#oregon auto insurance
Oregon Auto Insurance Laws and Regulations
Oregon laws provide for a hybrid combination of “fault” and “no-fault” systems in determining whose insurance pays for what bills after a car accident. Read on to learn more.
This article looks at car insurance laws and regulations in Oregon, including Oregon’s “fault plus PIP” insurance system and the kinds of insurance required for vehicles in operation in the state. If you’re looking for more general information on the legal rules related to auto accidents in Oregon, you’ll find it in our companion article Car Accident Laws in Oregon .
Oregon is a “Fault” Plus PIP Car Insurance State
Oregon laws provide for a hybrid combination of “fault” and “no-fault” systems in determining whose car insurance coverage pays for what bills after a car accident. To the extent that Oregon follows a “fault” system, the driver who was legally at fault for causing the accident is liable to pay for damages or injuries caused by the accident (his or her own car insurance will usually cover these costs).
However, the “no-fault” aspect rears its head in that every car insurance policy sold in Oregon is also required to include Personal Injury Protection (PIP). PIP covers your own injuries up to a certain limit during the first year after the accident. However, unlike true no-fault states, Oregon does not prevent you from bringing suit against the other driver before your PIP limits have been exhausted.
Minimum Car Insurance Requirements in Oregon
Oregon law requires that the owner of a motor vehicle maintain a certain amount of liability insurance in order to use the vehicle. This insurance protects both the driver and other people in the event of an accident, by covering the usually unaffordable bills that come with medical treatment or property damage. Oregon has set the minimum coverage amounts at:
- $25,000 for the injury or death of a single person (yourself, passenger, another driver, pedestrian, etc.)
- $50,000 total for the injury or death of multiple people in a single accident
- $10,000 for property damage, and
- $15,000 personal injury protection (PIP).
Remember that these are only the minimum amounts required under Oregon law. You may want to consider carrying a policy that offers greater coverage. If you are found liable for an accident and the damages exceed the limits of your policy, then you may find yourself on the proverbial hook for making up the excess amount out of your own assets.
Uninsured/Underinsured Motorist Coverage in Oregon
Oregon requires that every car insurance policy sold in the state include uninsured/underinsured motorist coverage (UIM). Minimum UIM coverage requirements are $25,000 per person, and $50,000 per crash for bodily injury.
UIM coverage protects you in situations where you’re in an accident with an at-fault driver who either has no insurance at all, or coverage that is insufficient to pay for all your losses. For example, if the other driver has the Oregon minimum of $25,000, but your medical and rehabilitative costs are $35,000, then your own UIM coverage would kick in to pay the remaining $10,000.