Oregon Auto Insurance Requirements

The beautiful state of Oregon, nestled in the northwestern corner of the nation is a land of deep forests and lovely coastline.

Oregon residents enjoy some of the most beautiful natural resources in the country and some of the most thorough automobile insurance requirements of any state in the union.

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Drivers in Oregon must follow fairly strict rules regarding insurance protection, but also have the assurance that they are among the best-protected drivers in the country.

Oregon Tort Liability Law

Oregon is one of the few states which follows a tort liability system of car insurance law, but also requires personal injury protection (PIP) as part of its minimum automobile coverage requirements.

The purpose behind this requirement is to insure that all drivers and passengers in Oregon are covered in the event of an accident to have medical needs attended to quickly and with assurance of payment for treatment.

Oregon Proof of Insurance Law

At the time you register a car in Oregon, you are required to show proof of minimum insurance coverage. During the remainder of the time your car is registered, you can be randomly audited at any time for insurance verification by the state’s Department of Motor Vehicles.

If you do not respond with proof of current insurance coverage within the required time period, your driver’s license will be automatically suspended. You can show proof of insurance to have your license reinstated, but will be charged a reinstatement fee.

Penalties for Driving without Auto Insurance in Oregon

If you are caught driving without auto insurance in Oregon, you will be charged with a Class A misdemeanor. This crime carries the penalty of up to one year in jail, a fine of up to $1,000, or both.

The amount you are charged and the time you are sentenced to jail both depend on the judge and the circumstances. Unlike many states, Oregon does not have a “lapse” grace period.

If you are pulled over at any time and cannot immediately provide proof of valid insurance, you will be charged and required to appear in court. At that time, if you can provide proof of continuous coverage, the charges may be dropped.

If you cause an accident and do not have proper insurance coverage, you will be charged with the crime of driving without insurance. You can also be sued for the medical and property costs associated with the accident.

Oregon Auto Insurance Requirements

Oregon requires that all drivers carry a minimum of $25,000/$50,000 of  bodily injury coverage along with at least $15,000 of PIP per person, which will cover your medical bills and those of your passengers if you are injured in an accident, no matter who is at fault.

Furthermore, you must have uninsured/underinsured motorist coverage of $25,000/$50,000 for bodily injury and $10,000 in property damage coverage.

While Oregon’s minimum requirements are far more thorough than many other states, these liability limits are still considered low if you have any personal property which you want to protect.

If you cause an accident and the costs exceed your liability limits, you will be personally responsible for the remaining costs and can be sued for these amounts.

How are auto insurance companies regulated in Oregon?

Oregon has rather strict laws which affect how insurance companies sell their products, as well. While auto insurance companies are allowed to exclude a single member of the household if that person has a poor driving record, insurers can also deny everyone in the household coverage if they choose.

Some companies adopt the policy that they will only insure you if everyone in your household meets the minimum driver requirements for coverage, while others will simply exclude the “poor” driver. It is important to be sure you understand who is covered by your policy and never allow an uninsured driver to operate your vehicle.

If an uninsured person drives your car and causes a wreck, your insurance company will not pay for the damages, and you may be held personally liable.

Oregon only allows insurance companies to use personal credit history when issuing new policies to determine rates. The Oregon Insurance Division specifically prohibits companies from raising rates or cancelling coverage due to poor credit history.

Insurance companies are also allowed to consider age, driving record, your location, and the make and model of your vehicle when determining a rate structure, and must disclose the reasons for any refusal to provide insurance to the applicant in writing.

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Related posts:

1. New York Auto Insurance Requirements
2. Maryland Auto Insurance Requirements
3. Ohio Auto Insurance Requirements
4. Nebraska Auto Insurance Requirements
5. Alabama Auto Insurance Requirements