Oregon Auto Insurance Requirements 2026: Expert Guide to Coverage Amounts
Oregon saw 50,128 car accidents in 2020 alone. You need to know everything in Oregon minimum auto insurance requirements to protect yourself financially and legally on the road.
The law prohibits driving without insurance in Oregon. The state requires you to carry specific minimum coverage amounts. Oregon regulations mandate liability coverage of at least $25,000 per person, $50,000 per crash for bodily injury, and $20,000 per crash for property damage. The state also requires Personal Injury Protection (PIP) coverage of $15,000 per person.
Basic minimum requirements might not protect you enough during a serious accident. Oregon has about 4.1 million registered vehicles, and the risk of collision remains high. In this guide, you’ll learn about Oregon’s mandatory insurance coverage and optional add-ons for better protection. You’ll also understand the penalties for non-compliance and how the state’s fault-based insurance system works when filing claims.
Oregon Minimum Car Insurance Requirements Explained
Oregon drivers must carry specific auto insurance coverage to protect themselves financially and legally. You need to know these requirements to stay compliant and get enough protection on the road.
25/50/20 Liability Coverage Breakdown
Oregon’s minimum auto insurance requirements follow a 25/50/20 liability coverage structure. These numbers mean:
- $25,000 bodily injury liability per person – Your insurance will pay up to this amount for injuries to one person in an accident you cause
- $50,000 bodily injury liability per accident – This covers all injuries when you’re at fault in an accident
- $20,000 property damage liability per accident – Your insurance covers property damage up to this amount when you’re responsible
Note that liability coverage pays only for other people’s costs—never your own injuries or vehicle damage.
Personal Injury Protection (PIP) Minimum: $15,000
Oregon requires PIP coverage for all private passenger vehicles. This no-fault coverage kicks in right away, whatever caused the accident. The required minimum PIP of $15,000 per person includes:
- Medical costs within two years of the crash
- 70% of lost wages (up to $3,000 monthly for 52 weeks) after 14 days of disability
- Essential services at $30 per day for up to 52 weeks
- Funeral costs up to $5,000
- Childcare costs at $25 daily (up to $750 total)
Uninsured Motorist Coverage: 25/50 Rule
Between 9-11% of Oregon drivers have no insurance and 20-25% only carry minimum coverage. That’s why uninsured motorist protection matters so much. Oregon requires all auto insurance policies to include uninsured/underinsured motorist coverage with these minimums:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury to multiple people
This protects you against uninsured drivers and hit-and-run accidents.
Vehicles Exempt from Insurance in Oregon
Some vehicles don’t need insurance under Oregon law. These include:
- Antique vehicles with permanent registration
- Farm tractors and trailers
- Implements of husbandry
- Special interest vehicles kept as collector’s items and not used mainly for transportation
- Snowmobiles and certain all-terrain vehicles (unless used on designated highway access routes)
- Vehicles used only on private property
- Motor-assisted scooters
- Electric personal assistive mobility devices
The minimum requirements meet legal standards but might not give you enough protection in serious accidents. The average bodily-injury car accident claim costs more than $126,000. This is a big deal as it means that many experts suggest buying higher coverage limits.
Optional Coverage Add-ons for Better Protection
You can get better protection on Oregon roads by adding optional insurance coverage beyond the minimum requirements. These extra coverages protect you in ways that simple liability insurance doesn’t.
Collision and Comprehensive Coverage Explained
Collision coverage takes care of your vehicle repairs after accidents, no matter who’s at fault. It protects your car when you hit something or roll over. Comprehensive coverage works differently – it handles damage from theft, vandalism, fire, broken glass, animal hits, and weather problems. You’ll pay less out of pocket for comprehensive claims than collision claims in most policies.
Insurance companies will declare your car a total loss if repairs cost more than what your car was worth before the crash. These coverages are a great investment for cars that still hold good value.
Rental Reimbursement and Roadside Assistance
Rental reimbursement helps pay for a rental car while your vehicle gets fixed after a covered accident. This coverage comes with daily limits and a maximum time period. You could end up paying hundreds in rental fees without this protection if your car needs long repairs.
Roadside assistance is a vital service when your car breaks down. It helps with towing, flat tires, and lockouts. Your plan might even cover overnight stays in certain situations.
Gap Insurance for Leased or Financed Vehicles
New cars lose 20% of their value in just one year. Gap insurance covers what’s left between your car’s value and your loan balance if someone steals your car or it’s totaled.
You’ll benefit most from this coverage if you:
- Made less than 20% down payment
- Financed for 60+ months
- Leased your vehicle
- Purchased a quickly-depreciating vehicle
- Rolled over negative equity from a previous loan
Uninsured Motorist Property Damage Coverage
Oregon makes uninsured motorist bodily injury coverage mandatory, but uninsured motorist property damage (UMPD) coverage remains optional. UMPD pays to fix your car when an uninsured driver damages it.
A UMPD claim comes with a $200 deductible, which goes up to $300 for hit-and-runs. Your coverage limit can’t be higher than your property damage liability limit.
UMPD works well with collision coverage – it even pays your collision deductible when an uninsured driver causes the accident.
Penalties for Driving Without Insurance in Oregon
Driving without insurance in Oregon leads to serious legal and financial penalties. The state strictly enforces these rules to make sure drivers carry the minimum required auto insurance coverage.
Fines: $130 to $1,000 per Offense
A driver caught without insurance in Oregon faces a Class B traffic violation. Fines start at $130 but courts can charge up to $1,000 based on the situation. You can resolve the citation without going to court by entering a “No Contest” plea with a $260 flat fee. The fines get higher for repeat offenders or if you crash while uninsured.
License and Registration Suspension Rules
Your driver’s license and vehicle registration will be suspended after a conviction for driving without insurance. The suspension lasts one year if you’re caught without insurance after an accident, regardless of fault. Police can also tow and impound your vehicle. Your vehicle registrations could face suspension for up to three months, and the car you drove at the time might be suspended for 120 days.
SR-22 Requirement After Conviction
A conviction requires you to file an SR-22 certificate with Oregon’s DMV. Your insurance provider issues this document for an extra fee to prove you have the minimum liability coverage required by law. You must keep this SR-22 certificate for three years after getting your license back. The DMV will suspend your driving privileges if you don’t file or maintain this certificate.
Reinstatement Fees and Timeline
You must pay a $75 reinstatement fee to get your driving privileges back once the suspension ends. If police impound your vehicle, you’ll learn about the administrative, towing, and storage fees within 48 hours. Oregon’s Department of Transportation monitors your insurance compliance for three years after reinstatement. Missing premium payments could cancel your policy and immediately suspend your license again.
How Oregon’s Fault-Based Insurance System Works
Oregon uses a fault-based insurance system. The driver who caused an accident must pay for the resulting damages. This is different from no-fault states where drivers use their own insurance whatever caused the accident.
Filing a Claim Against the At-Fault Driver
You have the right to file a claim with the other driver’s insurance company if they caused your accident. You’ll need to prove their negligence with evidence like police reports, witness statements, and photos. Oregon law lets you file bodily injury claims within two years and property damage claims within six years.
Using Your Own Insurance and Subrogation
Your claim gets processed faster through your own insurance policy. Your insurance company will then get reimbursed from the at-fault driver’s insurer through subrogation. This process happens automatically after your claim settles, and you usually get your deductible back too.
Diminished Value Claims in Oregon
You can seek compensation for your car’s lost market value after an accident, beyond just repair costs. These claims need separate filing and professional appraisals that show the value difference before and after repairs.
Out-of-State Accidents
Your policy covers accidents outside Oregon. The claim process follows the laws of the state where the accident happened.
Get Covered Today
Don’t be caught without insurance. It’s costly, and illegal. However, knowing how much coverage you need can save you money because it can eliminate unnecessary parts of your policy.