Oregon Car Insurance: Requirements for Residents

Although it would be much easier for consumers if it were otherwise every state has established their own requirements and guidelines for car insurance. Listed below are the fundamentals that every consumer should know prior to purchasing car insurance in Oregon.

• While it is not a no fault state, Oregon does require that all of its drivers purchase PIP, or Personal Injury Protection, insurance. PIP coverage will assist with medical expenses as well as lost wages and, if necessary, funeral expenses.
• OR also requires that all of its drivers carry uninsured motorist coverage. Not every state in the US requires that their drivers purchase a liability policy, and there are hundreds of drivers on US roads that are driving without insurance. Anyone unlucky enough to be involved in an accident with one of these individuals may find themselves having to foot the bill for their own medical and repair services, then spending months if not years in a court of law trying to recoup their expenses from the other driver’s personal assets. Uninsured motorist coverage is intended to facilitate this process, as well as assist those who have become the victims of a hit and run.
• Oregon is not one of the states that does not require liability insurance. All of its drivers must carry a minimum coverage in the amount of twenty five thousand dollars for bodily injury suffered by a single occupant of a vehicle, fifty thousand dollars for the combined medical expenses of all of the vehicle’s occupants and ten thousand dollars for any repairs that must be made to public or private property as a result of the accident, including the vehicle of the victim.
• While it is not required for vehicles not currently owned by a lender it is also recommended that all drivers carry a comprehensive policy for their vehicle (most lenders will require comprehensive coverage for vehicles currently under lien). In the event that a driver is responsible for an accident they will find themselves responsible for the entire expense of repairing their vehicle unless they have comprehensive insurance. OR comprehensive insurance will pay for repairs up to the Blue Book value of the vehicle, and will “total” the vehicle and award the owner the cash value of the car if the cost of repairs exceeds this amount.
• For more information regarding Oregon insurance consumers may contact the Oregon Insurance Division of the Department of Consumer and Business Services in Salem at 503-947-7980 or by visiting their website, http://www.cbs.state.or.us/external/ins/index.html.