Is car insurance required in Oregon?

Car insurance is a requirement in Oregon. Your policy must have a minimum of 25/50/20 liability coverage, $15,000 PIP coverage and UM/ UIM insurance of $25,000 per person in bodily injury to a maximum of $50,000 per accident. You may face various penalties if you drive within the state or cause an accident without insurance.

Do you need car insurance to register a car in Oregon?

Yes. You will need to provide proof of liability insurance or financial responsibility to get legal registration of your car in Oregon. Your insurance will need to meet the state’s car insurance requirements. You will also need to have proof of insurance in your vehicle and present it to the relevant officers when necessary. Failure to provide proof can lead to suspension of your license and several other penalties.

What is “basic” car insurance in Oregon?

Standard auto insurance meets the minimum requirements of the state. Oregon’s minimum liability limits include 25/50/20 plus $15,000 PIP, $25,000 UM per person for bodily injury and $50,000 per accident.

Does insurance follow the car or driver in Oregon?

Insurance in Oregon may follow the <a href="https://www.claimsjournal.com/news/national/2014/06/05/249762.htm" target="_blank">car or the driver</a> based on various factors, including the policy provider and coverage type. For insurance that follows the vehicle, the owner’s insurance policy will be used in case of an accident. However, for expenses such as medical costs and PIP, the individual using the vehicle may settle them at the time of the accident.

Can you get car insurance without a license in Oregon?

Drivers in Oregon are allowed to buy a car without first getting a license . They may also purchase car insurance without a license since all vehicles need to be insured in the state.

Is Oregon a no-fault state and what does this mean?

No. Oregon is not among the 12 no-fault states in the country. It is, however, also not an at-fault state and <a href="https://www.carinsurance.com/no-fault-states.aspx" target="_blank">one of the states that need PIP coverage</a>.

Is PIP coverage required in Oregon?

Yes, drivers need PIP coverage in Oregon. This coverage protects you if you get injured in an accident. If you are a driver in Oregon, your policy should have at least $15,000 PIP insurance. You can increase this limit at an extra cost.

Does Oregon require uninsured motorist insurance?

You need to carry uninsured motorist insurance coverage in Oregon. You should purchase at least $25,000 in bodily injury per person and $50,000 per accident. You can decide to increase the above limits at an added cost.

Does Oregon allow for diminished value compensation after an accident?

Yes. You can <a href="https://www.collisionclaims.com/oregon-diminished-value/#:~:text=Oregon%20is%20a%20diminished%20value,motorist%20coverage%20for%20diminished%20value." target="_blank">get diminished value compensation</a> in Oregon after an accident. That means you can ask for compensation for the difference in the new market value of your car after an accident. The state’s limit for filing diminished value claims in Oregon is six years.

How do car insurance requirements change after a DUI in Oregon?

The Oregon car insurance requirements for insurers do not promote higher costs for individuals with a DUI. While drivers with a DUI are considered high-risk, they can get SR-22 insurance in Oregon, although it may be more expensive than what a driver with a clean record pays for car insurance.

What is a CARCO inspection and is it required?

You can get a pre-insurance photo inspection of your car, also known as a <a href="https://www.carcogroup.com/policyholder-resources/faqs" target="_blank">CARCO inspection</a>. The process is only required in a few states and seeks to document the status of your vehicle. Oregon car insurance law does not make CARCO inspection compulsory.

Oregon Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

Oregon’s minimum car insurance requirements comprise a limit of 25/50/20. In addition to this, your policy must have personal injury protection, uninsured and underinsured motorist coverage. If you are a driver within the state, your policy should cover up to $25,000 per person in bodily injury, $50,000 per accident and a property damage coverage limit of $20,000. If you do not meet the minimum state requirements, you may face various fines or penalties. Apart from spending a lot of time and money on reinstating your license or car registration, you may also be jailed.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Oregon
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Oregon
FAQs

What Is the Minimum Car Insurance Requirement in Oregon?

Minimum car insurance requirements vary from state to state. So, how much car insurance do you need in Oregon?

To drive in Oregon, you need minimum liability coverage, PIP and UM/UIM insurance. The limits are as follows:

$25,000 per person for bodily injury
$50,000 per accident for bodily injury to others
$20,000 per accident for third-party property damage
$15,000 per personal injury protection
$25,000 per person uninsured motorist coverage per person and $50,000 per accident

This is typically written as 25/50/20. You can purchase additional coverage if you want added protection for yourself and your car.

What Does This Minimum Coverage Mean?

Most states need liability insurance and Oregon is no exception. This insurance coverage covers third-party injuries and damage to their properties should you get involved in an at-fault accident.

The minimum liability coverage limits in Oregon are 25/50/20. These figures represent $25,000 in bodily injury per person, a limit of $50,000 per accident regardless of the number of persons injured and a property damage coverage limit of $20,000.

In Oregon, you also need PIP and UM/UIM coverage. PIP or personal injury protection covers any injuries you may get during an accident regardless of who caused it. This protection has a limit of $15,000 in Oregon. In addition, PIP coverage covers funeral expenses, lost income, medical costs for up to two years after the accident, household replacement and childcare in case of hospitalization. You can also purchase additional PIP coverage if you feel that the $15,000 limit may not meet your needs.

The uninsured and underinsured motorist coverage pays up to $25,000 per person in bodily injury and $50,000 per accident if you get hit by an uninsured driver. This amount is the minimum allowed in Oregon, although you can purchase higher limits.

How Much Does the Minimum Car Insurance Cost in Oregon?

While shopping around, you might notice a significant variation in your car insurance premiums in Oregon among different insurers. Some of the factors behind this difference include your age, credit score, driving record and ZIP code. However, you may end up paying higher or lower costs than the state’s average of $1,181 per year.

According to MoneyGeek, the cheapest car insurance in Oregon comes from GEICO, costing $566 per year. USAA’s car insurance policy costs an average of $465 per year but is limited to military persons and their families.

These prices are only estimates based on rates for an average Oregon driver and should not be used to compare insurance prices.

The rates used by MoneyGeek in this study are for a policy that meets the Oregon car insurance requirements of 25/50/20 and $15,000 PIP coverage plus uninsured motorists coverage limits of $25,000 per person and $50,000 per accident. The policy belongs to a 40-year-old male driver with a 2010 Toyota Camry. The driver has a good credit score and driving record.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Oregon.

What Is the Minimum Car Insurance Requirement in Oregon While Leasing a Car?

Although car insurance laws are clear in Oregon, leasing companies may have different guidelines for drivers who intend to ease their car. Most insurers will ask you to purchase full coverage auto insurance with 100/300/50 as the minimum limit. Before purchasing your coverage, reach out to your leasing company to establish how much coverage you will need.

MoneyGeek recommends that you purchase at least 50/100/50 full coverage car insurance in Oregon. Most drivers understand the amount of car insurance coverage to purchase yet may fail to get covered when hit by an uninsured or underinsured motorist if they do not have full coverage insurance. In Oregon, 10.7% of the drivers are uninsured/ underinsured.

Penalties for Driving Without Car Insurance in Oregon

Purchasing car insurance saves you a lot of money and time. If you drive without car insurance in Oregon, you may face several fines and penalties. That is why you should have proof of insurance with you each time you are on the road. The proof can either be on hard copy or electronic.

If you get involved in an accident while uninsured, your license may be suspended for up to a year. You will then need to provide insurance proof for three years to the Department of Motor Vehicles. Your insurer will need to send an SR-22 form to DMV to confirm that you have the requisite coverage.

You can face the following penalties for failing to meet the Oregon car insurance requirements.

Conviction by the court of law
Carry SR-22 insurance with you for at least three years
Impounding of your vehicle
Suspension of driving privileges for one year
File proof with DMV for purchasing insurance for three years
Insurer completes and submits an SR-22 insurance form to DMV

Most insurers consider drivers with SR-22 as high-risk and therefore charge higher car insurance rates. So if you are found driving under the influence, you will need to purchase twice the minimum car insurance requirements for the state, which can be very costly.

Frequently Asked Questions About Car Insurance in Oregon

When looking for an auto insurance policy in Oregon, drivers may have some questions. We’ve answered some of them below.

Learn More About Car Insurance

About Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

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CollisionClaims.com. "Oregon Diminished Value Claims." Accessed July 12, 2021.
Insurance Information Institute. "2020 Insurance Fact Book." Accessed July 12, 2021.
Insurance Information Institute. "Background on: Compulsory Auto/Uninsured Motoristsv." Accessed July 12, 2021.
Insurance Information Institute. "Facts + Statistics: Uninsured motorists." Accessed July 11, 2021.
Kelly Blue Book. "Penalties for Driving Without Car Insurance by State." Accessed July 11, 2021.
Nationwide. "What States Have No-fault Insurance?." Accessed July 12, 2021.
Oregon.gov. "DMV2U Online Service Center." Accessed May 9, 2023.
Oregon.gov. "Minimum Insurance Requirements." Accessed July 12, 2021.
ValuePenguin. "How does Personal Injury Protection Car Insurance Work in Oregon?." Accessed July 12, 2021.
Oregon.gov. "Insurance Requirements." Accessed May 9, 2023.

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