Oregon Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Oregon?

• In the state of Oregon, all drivers must carry minimum liability auto insurance in the amount of $25,000 per person bodily injury and property damage liability, $50,000 per crash for bodily injury to others, and $10,000 for property damage.
• The state of Oregon also requires that each liability policy include personal injury protection (PIP) in the amount of $15,000 per person and Uninsured/Underinsured motorist coverage of $25,000/$50,000 for bodily injury.
• Oregon requires all motorists to certify that they have coverage every time they register a motor vehicle.
• State insurance laws allow the Oregon DMV to randomly select vehicle owners for insurance verification. If you are randomly selected for insurance verification and you do not respond by verifying coverage, your driving privileges are automatically suspended.  
• In the state of Oregon, if you are caught driving without insurance, your car may be towed, and you will be charged with a Class A misdemeanor. A Class A misdemeanor is punishable by fines, up to one year in jail, or both.
• You must carry proof of valid insurance in your vehicle or on your person when every time you get behind the wheel. 

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Oregon, your policy must include minimum liability coverage of:

$25,000 per person bodily injury and property damage liability,
$50,000 per crash for bodily injury to others,
$10,000 for property damage,
$15,000 personal injury protection (PIP) per person,
and
$25,000/$50,000 uninsured/underinsured motorist coverage of for bodily injury
 
What are the Rental Car Insurance Requirements?

Driving any vehicle, including rental cars, without insurance in the state of Oregon is a Class A misdemeanor. Rental cars must carry the minimum liability coverages required under Oregon law. It is important to keep in mind that most Oregon auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is mandatory in the state of Oregon in the amount of $25,000/$50,000 for bodily injury.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Oregon, it is legal for auto insurance companies to deny coverage to any applicant that currently lives with a relative who has a poor driving record. Some companies will flat out deny coverage unless every driver in the household meets their requirements, while others will exclude the "bad driver" by name from the insurance policy. If an auto insurance company excludes any driver in the household, this means that if the excluded person drives your vehicle and is involved in an accident, the insurance company can legally deny the claim, even in the case of emergencies.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

In the state of Oregon, insurance companies are not legally required to notify the DMV of a lapse in insurance. This does not mean that you can’t get caught driving without insurance. If you become involved in an accident or a routine traffic stop, you will be asked to provide proof of valid insurance. If you do not provide proof of insurance, your car may be towed, and you will be charged with a Class A misdemeanor. A Class A misdemeanor is punishable by fines, up to one year in jail, or both.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Oregon, the use of Personal Credit History as a tool to help determine rates and renewals is limited. The issue of Personal Credit History and how it can be used relative to auto insurance is controversial in the state of Oregon, so the Oregon Insurance Division has outlined the rules as follows:

“In Oregon, insurers can’t use a policyholder’s credit information to raise premiums. Also, the law prohibits insurers from canceling or refusing to renew existing policies because of credit history problems. Insurers can use credit information when deciding whether to issue a new policy, but only if they can document that it helps them predict future claim costs and price their products fairly. At the same time, they must demonstrate that credit information is used as part of an evaluation system that also relies on other relevant factors. Oregon insurers and producers (agents) must tell consumers how the company uses credit information before running credit checks. If a company uses credit information to prescreen applicants, the company must notify you of this before running a credit check. If an insurer uses credit information to make an “adverse” decision, such as not to offer the best rate or not to offer a policy, the insurer must give you specific reasons for the adverse action.”

It is important to keep in mind that auto insurance companies do not use Personal Credit History alone to determine rates, offers for products or to determine whether or not they will renew your auto insurance policy. Auto insurance companies also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Oregon follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Oregon is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Oregon resident’s average insurance premium was approximately $726, the 30th most expensive in the nation. This is down 1.7% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Oregon Insurance Division