Oregon car insurance requirements and laws

Minimum car insurance requirements

Oregon's minimums go beyond liability. Every policy used to meet the financial responsibility law must include liability at the limits in ORS 806.070. It must also include personal injury protection (PIP) under ORS 742.520–742.524 and uninsured motorist coverage under ORS 742.502. That uninsured coverage must include underinsured protection.

Oregon PIP pays for you, your passengers and members of your household regardless of who caused the crash. It covers:

• Medical, hospital, dental and ambulance costs incurred within two years, up to $15,000
• 70% of lost income, up to $3,000 a month for 52 weeks, if you are disabled at least 14 days
• Up to $30 a day for essential services, such as hiring help for household tasks
• Up to $5,000 for funeral expenses
• $25 a day for child care when a parent is hospitalized

Uninsured motorist limits must equal your bodily injury limits unless you choose lower limits in writing, and they can never be lower than 25/50.

What the minimums mean in practice: suppose you cause a crash on Interstate 5 and the other driver has $40,000 in medical bills. That driver's own PIP pays the first $15,000 of medical costs. They can still sue you for everything, including pain and suffering. Your bodily injury coverage pays up to $25,000 for that person, and the PIP insurer can seek reimbursement from your insurer. If the claim exceeds your limits, the rest can fall on you. The How much car insurance do I need? shows how higher limits change that picture.

Fault system and what it means after a crash

Oregon is an at-fault state with mandatory PIP, sometimes called an add-on state. Your PIP pays quickly for your own injuries, but unlike in true no-fault states, there is no threshold before you can sue the at-fault driver. The at-fault driver's liability insurer is still responsible for the full damages. Insurers that pay PIP can recover those costs from the liable driver's insurer.

Oregon uses modified comparative negligence (ORS 31.600). You can recover as long as your fault is not greater than the combined fault of the others, and your damages are reduced by your share. See no-fault vs at-fault states and Personal injury protection (PIP) explained.

Optional coverage worth considering here

• Higher liability and UM/UIM limits. A serious injury on a highway can exceed 25/50 quickly. UM follows your liability limits by default, so raising one usually raises both.
• Collision and comprehensive. These are not required, but lenders demand them. Comprehensive matters in a state with wildfire smoke and ash, falling trees and winter storms (hail, flood and storm damage: filing a comprehensive claim).
• Uninsured motorist property damage, if your insurer offers it and you skip collision.
• Gap coverage on a new loan or lease.

What drives rates in Oregon

The NAIC put Oregon's average expenditure at $1,170 in 2023, below the national average of $1,281.60. Mandatory PIP and UM add to the cost of a basic policy compared with liability-only states. Rates in the Portland area run higher than in rural counties because of congestion, vehicle theft and claim frequency. Rain, ice on mountain passes and deer on rural roads raise collision risk. The Insurance Research Council estimated 14.7% of Oregon drivers were uninsured in 2023, close to the national 15.4%.

Penalties for driving uninsured

Driving uninsured is a Class B traffic violation under ORS 806.010. After a conviction you must file proof of insurance with the Oregon DMV, normally an SR-22, and keep it for one year. If you don't, your license is suspended. If you are in a crash while uninsured, your driving privileges can also be suspended. You must carry proof of insurance in the vehicle, and showing it on a phone is allowed. See penalties for driving without insurance and Proof of insurance laws and digital ID cards.

SR-22 and high-risk drivers

Oregon calls the SR-22 a "future responsibility filing." The DMV requires one after convictions such as driving uninsured, normally for one year, and for three years in other cases. DUI drivers face stricter rules under ORS 806.075. Their filing must show at least $50,000 per person, $100,000 per accident and $10,000 in property damage, and it must stay in place for three years. Ask your insurer before you buy whether it files SR-22s. Many standard carriers do, and nonstandard auto insurance carriers fill the gap (SR-22 insurance explained, Car insurance after a DUI).

Insurers with a strong presence in Oregon

National carriers State Farm, Progressive, Farmers Insurance, GEICO and Liberty Mutual (which sells through its Safeco brand in the Northwest) write a large share of Oregon policies. PEMCO Insurance, a Seattle-based mutual, and COUNTRY Financial are notable regional options sold through agents. USAA serves eligible military families.

Where to get help

The Oregon Division of Financial Regulation consumer advocacy line is 888-877-4894, or email [email protected]. The office is at 350 Winter St. NE, Salem, OR 97301 (mailing address P.O. Box 14480, Salem, OR 97309), and online at dfr.oregon.gov. Advocates help with claim disputes, cancellations and finding coverage (how to file a complaint against a car insurance company). For license suspensions and SR-22 questions, contact the Oregon DMV. The deadline to sue for injuries is generally two years, and six years for property damage (statutes of limitations for car accident claims). Ask a licensed attorney about your specific claim.