Oregon Liability Only Auto Insurance: Save 40% While Staying Legal
Want to slash your auto insurance premiums by up to 40% in Oregon? You can do this with Liability Only coverage while staying within the law. Many Oregon drivers pay too much because they don’t know they might not need extra coverage.
The state’s liability insurance rules are simple but you must follow them. Every driver needs minimum coverage of $25,000 per person and $50,000 per accident for bodily injury, plus $20,000 for property damage. You also need Personal Injury Protection (PIP) of $15,000 per person, which applies whatever caused the accident. These rules might look complicated at first glance, but knowing them helps you make smart choices about your coverage.
Good news for Oregon drivers – insurance costs here run about 15% below the national average. The typical premium sits around $1,880 in 2024. You can cut this cost even more by picking liability-only coverage if it fits your situation. This piece shows what Oregon’s liability insurance covers, ways to save money, and situations where basic coverage might not be enough to protect you.
Oregon Car Insurance Requirements You Must Know
You should know what Oregon wants from drivers when it comes to auto insurance. Oregon Revised Statute 806.010 makes it illegal to drive without proper liability coverage. Oregon stands apart from other states by requiring four different types of coverage to legally drive on the road, not just simple liability protection.
Minimum Bodily Injury Liability: $25,000 per person
Bodily injury liability helps protect you financially when you cause an accident that hurts someone else. Oregon just needs you to have minimum coverage of $25,000 per person and $50,000 per accident for bodily injuries. This coverage takes care of medical expenses, pain and suffering, rehabilitation costs, and lost wages for others injured in accidents that are your fault. Your personal finances could be at risk for medical costs that go beyond your policy limits if you don’t have enough coverage.
Property Damage Liability: $20,000 per accident
You must also carry property damage liability insurance of at least $20,000 per accident. This protection helps pay for repair or replacement costs of other people’s vehicles and property damaged in accidents you cause. The coverage extends beyond vehicles to buildings, fences, and other structures damaged in an accident.
Personal Injury Protection (PIP): $15,000 per person
Oregon makes PIP mandatory, though not all states require it. PIP gives you $15,000 per person to cover medical expenses whatever caused the accident. The Oregon PIP has benefits beyond simple medical coverage:
- $3,000 per month for income continuation (up to 52 weeks)
- $30 per day for essential services (up to 52 weeks)
- $5,000 for funeral expenses
- $25 per day for childcare expenses (up to $750)
Uninsured Motorist Coverage: $25,000 per person
Oregon requires uninsured motorist bodily injury coverage with minimum limits of $25,000 per person and $50,000 per accident. This protection kicks in if you get hurt in an accident caused by an uninsured driver or in a hit-and-run. The uninsured motorist coverage in Oregon only applies to bodily injuries, not property damage.
Driving without these four mandatory coverages puts you at risk financially and breaks Oregon law. You could face fines and other penalties.
What Liability-Only Auto Insurance Covers in Oregon
You can make better decisions about your coverage needs by knowing what liability-only auto insurance offers. This simple form of protection plays a specific role in the insurance world.
Covers damage to others, not your own vehicle
Liability-only auto insurance in Oregon pays for costs at the time you’re at fault in an accident. Your policy covers the other driver’s expenses, including their medical bills and vehicle repairs. It provides protection for bodily injury to others (minimum $25,000 per person/$50,000 per accident) and property damage to others’ possessions (minimum $20,000 per accident). So if someone sues you after an accident you caused, your liability coverage helps pay legal fees and settlement costs.
Note that liability insurance won’t cover repairs to your own vehicle after an accident you cause. Your personal medical expenses also stay uncovered under this simple protection.
Meets Oregon’s legal insurance requirements
Liability-only coverage satisfies Oregon’s mandatory insurance requirements when paired with the state’s other required protections. Oregon operates under a fault-based system where the party responsible for an accident bears financial responsibility for damages. The state created these minimums to ensure accident victims receive compensation for injuries and to make sure drivers can respond financially when liable.
Excludes collision and comprehensive protection
With liability-only coverage, you give up two optional protections that would otherwise cover your own vehicle:
- Collision insurance: Pays for repairs to your vehicle after accidents whatever the fault
- Comprehensive insurance: Covers non-collision incidents like theft, vandalism, weather damage, and animal collisions
Your vehicle’s repairs or replacement costs fall on you without these coverages if it gets damaged or stolen. Liability-only insurance makes sense when your vehicle’s value has dropped by a lot and replacement wouldn’t cause financial strain.
How to Save 40% with Liability-Only Coverage
You can cut your auto insurance costs by up to 40% with the right strategy. Oregon drivers pay $2,121 annually for full coverage and $841 for minimum coverage. Switching to liability-only insurance can save you money if you do it right.
Compare quotes from multiple Oregon insurers
Start by getting quotes from at least three different insurance companies. Insurance rates vary a lot between providers. Liberty Mutual says you can save over $700 compared to GEICO, Progressive, and State Farm. Local insurance companies might even give you better rates than national brands.
Drop collision and comprehensive if your car is older
Older cars don’t always need comprehensive and collision coverage. Here’s a simple way to figure it out: take your car’s actual cash value and subtract your deductible plus yearly comprehensive/collision premium. To name just one example, see a $5,000 vehicle with a $1,000 deductible and $825 annual premium – your net payout would be $3,175. If your car is worth just a few thousand dollars, you’ll save money by dropping these coverages.
Bundle with renters or home insurance for discounts
Insurance companies give homeowners better rates on auto insurance through bundling discounts. Progressive customers save over 25% on average when they combine home and auto policies. State Farm has similar deals when you insure your car with home, renters, condo, life, or health policies.
Your driving record affects your premium in Oregon more than anything else. Drivers without tickets, DUI convictions, and at-fault accidents pay less. One accident is a big deal as it means that your full coverage cost jumps to $3,166 on average. State Farm rewards drivers who haven’t had moving violations or at-fault accidents in the last three years.
When Liability-Only Insurance Might Not Be Enough
Basic liability coverage offers cost benefits, but some situations just need better protection. Many Oregon drivers find minimum coverage insufficient to provide proper financial security.
If your car is financed or leased
Lenders require more than basic liability coverage for financed vehicles. Auto loan agreements make comprehensive and collision coverage mandatory to protect their investment until you pay off the loan. Your loan terms will be violated if you choose liability-only insurance on a financed car. This could lead to force-placed insurance or your vehicle getting repossessed. Full coverage insurance costs $1,755 per year in Oregon compared to $807 for minimum coverage. This difference represents the work to be done to protect your lender’s interests.
If you drive in high-risk areas
Your vehicle remains exposed with liability-only policies in places that have higher crime rates or frequent accidents. Oregon’s statewide requirements keep you legally protected, but they won’t help if your car gets damaged in areas with higher risks of theft, vandalism, or collisions.
If you want protection from theft or weather damage
Liability-only policies offer zero coverage for natural disasters, theft, or vandalism. Comprehensive insurance covers damage from falling objects, floods, fires, theft, and vandalism, though state law makes it optional. You would have to pay all repair or replacement costs yourself without this protection, which could create major financial stress.
Get Covered Today
Liability-only auto insurance is a practical way to save money and meet Oregon’s legal requirements. You’ve learned about the four coverages you just need in Oregon: bodily injury liability, property damage liability, PIP, and uninsured motorist protection. This knowledge enables you to make smarter insurance decisions that fit your situation.
Drivers who own older vehicles can benefit the most from liability-only coverage. They can cut their insurance costs by 40% compared to full coverage policies. You can save even more by comparing quotes from multiple insurers, bundling with home or renters insurance, and keeping a clean driving record.
In spite of that, liability-only insurance isn’t the right choice for everyone. Financed or leased vehicles usually require comprehensive coverage because of lender agreements. The same goes for people living in high-theft areas or regions with severe weather – they face most important financial risks without protection beyond simple liability.
Take time to think over your vehicle’s value, financial situation, and risk tolerance. While saving money matters, finding the right balance between affordable premiums and good protection ended up giving the best value. With this information, you can make a confident choice about coverage that keeps you legally compliant and financially secure on Oregon’s roads.