Average Cost of Car Insurance in Oregon

Oregon has an uninsured driver rate of approximately 10.7%, meaning roughly one in 10 drivers lacks insurance coverage. While this is below the national average of 14%, it still represents a risk for Oregon drivers. Oregon requires all drivers to carry uninsured motorist coverage that meets liability coverage requirements ($25,000 per person, $50,000 per accident), providing protection when encountering uninsured drivers. The state also has a "no pay, no play" law that limits uninsured drivers' ability to recover certain damages.

Oregon's Division of Financial Regulation acknowledges that icy, snowy roads combined with drivers unaccustomed to these conditions increase crash risk. The state experiences varied weather patterns including heavy rain, snow, ice and fog that create hazardous driving conditions. Rain is particularly problematic as it reduces tire traction and creates hydroplaning risks, while winter conditions in mountainous areas can catch drivers off guard. These weather-related risks contribute to increased claims and affect insurance pricing, especially for comprehensive coverage.

Oregon follows a traditional at-fault insurance system, meaning the driver responsible for an accident bears the financial burden for damages and injuries. However, Oregon has a unique twist: it requires all drivers to carry personal injury protection coverage, even though it's not a no-fault state. Oregon requires $15,000 in PIP coverage per person, which covers medical expenses, lost wages and other costs regardless of fault. This hybrid system provides immediate medical coverage while still allowing drivers to pursue claims against at-fault parties.

Oregon's average car insurance rates are slightly above the national average, with full coverage costing approximately $1,594 per year compared to the national average. State minimum coverage averages $850 per year, reflecting the state's higher insurance requirements including mandatory personal injury protection and uninsured motorist coverage. The combination of required coverages, weather-related risks and historically high car theft rates contributes to these elevated premiums.

Oregon's unique combination of weather risks and theft concerns makes comprehensive coverage particularly important. The state's varied climate creates risks from hail, windstorms, flooding and winter weather that can damage cars. Oregon officials recommend comprehensive coverage to protect against weather-related damage, especially given the state's propensity for sudden weather changes that can catch drivers unprepared.

Oregon ranked 10th in the nation for car theft rates in 2024, with 11,812 cars stolen. However, the state saw improvement with car thefts plummeting 30% in 2024, leading the nation in theft reduction alongside Washington and Nevada. Portland specifically saw a 37% drop in stolen car reports from 2023 to 2024, with January 2025 recording the fewest stolen cars since 2016. Despite these improvements, car theft remains a concern that impacts comprehensive coverage pricing.

Oregon has more extensive insurance requirements than many states, requiring drivers to carry liability coverage (25/50/20), $15,000 in personal injury protection coverage and uninsured motorist coverage matching liability limits. These requirements mean Oregon drivers must carry more comprehensive protection than states with basic liability-only requirements. The mandatory coverages provide better protection for Oregon drivers but also contribute to higher overall insurance costs.