Oklahoma Auto Insurance Law & Requirements

Oklahoma law requires all drivers to maintain compulsory liability insurance to legally operate a vehicle on public roads.

Compulsory Liability Coverage

Minimum Limits: 25/50/25

Oklahoma requires the following minimum liability limits:

Expressed as: 25/50/25

What Liability Coverage Does

Bodily Injury Liability pays for:

• Medical expenses of injured parties
• Lost wages of injured parties
• Pain and suffering damages
• Legal defense costs
• Court judgments up to policy limits

Property Damage Liability pays for:

• Damage to other vehicles
• Damage to buildings, fences, utility poles
• Damage to personal property (cargo, equipment)
• Legal defense costs

Exam Tip: Oklahoma's 25/50/25 minimum is exactly that—a MINIMUM. These limits are often inadequate for serious accidents. Agents should recommend higher limits.

Proof of Insurance

Oklahoma accepts three forms of insurance verification:

1. Physical Insurance Card: Carried in vehicle
2. Electronic Proof: Mobile phone display of policy information
3. Online Verification: Law enforcement can verify coverage electronically

Required Information on Proof:

• Policy number
• Insurance company name
• Policy effective dates
• Vehicle identification
• Insured's name

Penalties for Driving Uninsured

First Offense:

• Fine: $250-$500
• Driver's license suspension until proof of insurance provided
• SR-22 filing required for 3 years

Subsequent Offenses:

• Fine: $500-$1,000
• License suspension for 6 months to 1 year
• Possible vehicle impoundment
• SR-22 requirement extended

Oklahoma Tort System

Fault-Based System

Oklahoma uses a traditional tort system (NOT no-fault):

How It Works:

1. Negligent driver is legally liable for damages
2. Injured party can sue at-fault driver
3. At-fault driver's liability insurance pays claims
4. No restrictions on right to sue

This Differs From No-Fault States:

• No Personal Injury Protection (PIP) requirement
• No lawsuit threshold
• Injured parties can sue for any amount
• Insurance follows traditional liability principles

Comparative Negligence

Oklahoma follows modified comparative negligence (50% rule):

Rule: Injured party can recover damages ONLY if less than 50% at fault

Examples:

Key Point: If you're 50% or more at fault, you recover NOTHING

Exam Tip: Oklahoma's 50% comparative negligence rule means that if you're 50% or more responsible for an accident, you cannot recover damages from the other driver.

Uninsured/Underinsured Motorist Coverage

UM/UIM Requirement

Oklahoma law requires insurers to OFFER UM/UIM coverage:

Offer Requirements:

• Must be offered with liability coverage
• Limits equal to liability limits (unless rejected)
• Rejection must be in writing
• Named insured must sign rejection form

Uninsured Motorist (UM) Coverage

Covers:

• Bodily injury caused by uninsured driver
• Bodily injury in hit-and-run accidents
• Bodily injury when at-fault driver's insurer is insolvent

Does NOT Cover:

• Property damage (optional separate coverage in Oklahoma)
• Your own negligence
• Accidents with insured drivers

Underinsured Motorist (UIM) Coverage

Covers:

• Bodily injury when at-fault driver's limits are insufficient
• Gap between at-fault driver's limits and your damages

Example of UIM:

You're seriously injured, total damages: $100,000 At-fault driver's limits: 25/50/25 (pays $25,000) Your UIM coverage: $100,000

UIM Payment Calculation:

• Your damages: $100,000
• At-fault driver pays: $25,000
• Your UIM pays: $75,000
• Total recovery: $100,000

UM/UIM Stacking

Oklahoma allows stacking of UM/UIM coverage in some cases:

Stacking means combining coverage from multiple policies or vehicles:

Example:

• Policy covers 3 vehicles
• UM coverage: $25,000 per vehicle
• With stacking: Total available UM = $75,000

Types of Stacking:

• Intra-policy: Stacking limits from multiple vehicles on same policy
• Inter-policy: Stacking limits from multiple policies covering same insured

Note: Insurers can prevent stacking with anti-stacking provisions in policy language

Additional Auto Coverages

Medical Payments Coverage (Med Pay)

Optional Coverage in Oklahoma:

What It Covers:

• Medical expenses for you and your passengers
• Regardless of fault
• Covers injuries in your vehicle or as pedestrian
• Pays in addition to other coverage

Typical Limits:

• $1,000 to $10,000 per person
• Pays deductibles and copays
• Covers ambulance, hospital, surgery, rehabilitation

Advantages:

• No-fault coverage (immediate payment)
• Covers health insurance deductibles
• Covers passengers without health insurance
• Relatively inexpensive

Personal Injury Protection (PIP)

Not Required in Oklahoma (unlike no-fault states):

• Optional first-party medical coverage
• Broader than Med Pay
• May cover lost wages and essential services
• Higher limits available ($10,000-$50,000)

Collision Coverage

Covers damage to YOUR vehicle:

• Collision with another vehicle
• Collision with object (tree, pole, guardrail)
• Single-vehicle rollover accidents
• Regardless of fault

Key Features:

• Subject to deductible ($250-$2,000 typical)
• Pays up to actual cash value of vehicle
• Required by lenders/lessors
• Optional once vehicle paid off

Comprehensive Coverage

Covers damage to YOUR vehicle from non-collision events:

Covered Causes:

• Theft or vandalism
• Fire or explosion
• Windstorm, hail, or tornado
• Falling objects
• Glass breakage
• Flood or water damage
• Animal strikes (deer, livestock)

Key Features:

• Subject to separate deductible
• Often lower deductible than collision ($100-$500)
• Covers total theft of vehicle
• Important in Oklahoma due to severe weather

Exam Tip: Collision covers impact with vehicles or objects. Comprehensive covers almost everything else (theft, weather, animals). Both are optional unless required by lender.

Oklahoma Liability Insurance Plan

Purpose

The Oklahoma Liability Insurance Plan is a residual market mechanism providing auto insurance to high-risk drivers unable to obtain coverage in the voluntary market.

Eligibility

Who Qualifies:

• Drivers with poor driving records
• Drivers with multiple accidents or violations
• New drivers without insurance history
• Drivers with DUI/DWI convictions
• Must have been rejected by at least 2 voluntary market insurers

Coverage and Costs

Coverage Provided:

• Minimum liability limits (25/50/25)
• Higher limits available at additional cost
• Can add UM/UIM coverage
• No collision or comprehensive available through plan

Costs:

• Premiums 50-200% higher than voluntary market
• Rates reflect high-risk nature of insureds
• Annual renewals with rate adjustments
• Surcharges for violations

Application Process

1. Try Voluntary Market: Apply with at least 2 standard insurers
2. Obtain Declinations: Get written proof of rejection
3. Apply to Plan: Submit application with declination notices
4. Assignment: Plan assigns you to participating insurer
5. Policy Issuance: Assigned insurer issues policy

Duration in Plan:

• Typically 1-3 years
• Can return to voluntary market with improved record
• Must maintain continuous coverage

Special Oklahoma Auto Insurance Provisions

SR-22 Filings

SR-22 is a certificate of financial responsibility filed by insurer with the Oklahoma Department of Public Safety.

When Required:

• DUI/DWI conviction
• Driving without insurance violation
• License suspension for violations
• Multiple at-fault accidents
• Court-ordered requirement

How It Works:

• Insurance company files SR-22 electronically
• Must maintain continuous coverage
• Lapse triggers license suspension
• Required for 3 years typically

Costs:

• Filing fee: $50-$100
• Higher insurance premiums (high-risk driver)
• Must maintain minimum 25/50/25 limits

Teen Driver Requirements

Oklahoma has specific requirements for young drivers:

Graduated Driver Licensing (GDL):

• Learner's permit at age 15
• Intermediate license at age 16
• Full unrestricted license at age 16.5 or 18

Insurance Implications:

• Teen drivers significantly increase premiums
• Must be listed on parent's policy or have own policy
• Good student discounts available (3.0+ GPA)
• Driver training discounts apply

Supervision Requirements:

• Learner's permit: Licensed driver 21+ in vehicle
• Intermediate license: Restrictions on passengers and nighttime driving

Military Personnel Provisions

Oklahoma provides special considerations for military members:

Storage Rate Reduction:

• Reduced rates if vehicle stored during deployment
• Must suspend regular use
• Comprehensive coverage maintained
• Liability coverage suspended

License and Registration:

• Can maintain Oklahoma license while stationed elsewhere
• Grace period for registration renewal
• Deployment extensions granted

Auto Insurance Rating Factors in Oklahoma

Permitted Rating Factors

Oklahoma allows insurers to use these factors in setting rates:

Prohibited Rating Factors

Oklahoma prohibits discrimination based on:

• Race or national origin
• Religion
• Occupation (with limited exceptions)
• Disability (unrelated to driving risk)

Credit-Based Insurance Scores

Oklahoma allows use of credit scores with limitations:

Permitted:

• Use in initial underwriting and rating
• Periodic credit checks for renewal pricing
• Credit-based insurance score models

Required Protections:

• Cannot cancel or non-renew based solely on credit
• Must explain adverse action based on credit
• Consumers can dispute inaccurate credit information
• Extraordinary life events may warrant exceptions

Exam Tip: Oklahoma allows credit-based insurance scoring, but insurers cannot cancel or refuse to renew a policy based solely on credit scores.

Oklahoma Auto Insurance Discounts

Common Discounts Available

Defensive Driving Course Benefits

Oklahoma allows insurance discount for defensive driving:

Requirements:

• Approved course (online or classroom)
• Completion certificate
• Course every 3-5 years to maintain discount

Benefits:

• 5-10% premium discount
• May reduce points on driving record
• Fulfills court requirements for some violations

Oklahoma Auto Insurance Claims

Claims Process

Step-by-Step Process:

1. Report Accident: Contact your insurer immediately
2. Exchange Information: Get other driver's insurance info
3. Document Scene: Photos, witness statements, police report
4. File Claim: Submit claim with your insurer or at-fault driver's insurer
5. Investigation: Insurer investigates and determines fault
6. Vehicle Inspection: Adjuster assesses damage
7. Settlement: Repair authorization or payment issued
8. Resolution: Repairs completed or settlement finalized

First-Party vs. Third-Party Claims

First-Party Claim (Your Insurance Pays):

• File with YOUR insurance company
• Use collision/comprehensive coverage
• Pay your deductible
• Faster payment and repairs
• Your insurer may subrogate against at-fault driver

Third-Party Claim (Other Driver's Insurance Pays):

• File with AT-FAULT driver's insurance
• No deductible if other driver fully liable
• May take longer to process
• Must prove other driver's fault
• May need to negotiate settlement

Total Loss Settlements

Vehicle declared total loss when:

• Repair cost exceeds vehicle's actual cash value
• Repair cost exceeds percentage of value (typically 70-80%)
• Vehicle is unsafe to repair

Settlement Amount:

$\text{Settlement} = \text{Actual Cash Value} - \text{Deductible} - \text{Salvage Value}$

Example:

Vehicle actual cash value: $12,000 Deductible: $500 Salvage value: $2,000 (if owner keeps vehicle)

If owner keeps vehicle: $12,000 - $500 - $2,000 = $9,500 If insurer takes vehicle: $12,000 - $500 = $11,500