Oregon Auto Insurance

Mandatory Auto Insurance Coverage

Minimum Liability Requirements: 25/50/20

Oregon law requires all drivers to carry:

Exam Tip: Remember Oregon's 25/50/20 limits. This is one of the most commonly tested items on the Oregon P&C exam.

What These Limits Mean

• $25,000 per person: Maximum paid for one person's injuries in an accident
• $50,000 per accident: Maximum paid for all injuries in one accident
• $20,000 property damage: Maximum paid for damage to others' property

Uninsured/Underinsured Motorist (UM/UIM) Coverage

Required Offer: Insurers must offer UM/UIM coverage equal to liability limits.

• Can be rejected: Insured can decline in writing
• Protects you: When hit by uninsured or underinsured driver
• Stacking: Oregon allows stacking of UM/UIM across multiple vehicles
• Recommended: Given high percentage of uninsured drivers

UM/UIM Coverage Scenarios

Uninsured Motorist: Covers you when hit by:

• Driver with no insurance
• Hit-and-run driver (unknown)
• Driver whose insurer denies coverage

Underinsured Motorist: Covers you when:

• At-fault driver has insurance but insufficient limits
• Your damages exceed their policy limits
• You have higher UM/UIM limits than their liability

Personal Injury Protection (PIP) - Optional

Unlike no-fault states, Oregon makes PIP optional:

• Not mandatory: Insureds can choose to purchase or decline
• Covers medical expenses: Regardless of fault
• Lost wages: Income replacement benefits
• Funeral expenses: Death benefits
• Coordination: With health insurance and other sources

Oregon's Modified Tort System

Oregon uses a traditional tort system:

How It Works:

1. Fault-based: At-fault driver's liability insurance pays
2. Right to sue: Injured party can sue at-fault driver
3. No restrictions: No verbal/monetary thresholds (unlike some no-fault states)
4. Comparative negligence: Oregon uses modified comparative fault

Comparative Negligence Rule

Oregon follows modified comparative negligence (50% rule):

• If you are 50% or less at fault → You can recover damages (reduced by your fault %)
• If you are more than 50% at fault → You cannot recover damages

Example: You are 30% at fault in accident with $100,000 damages:

• You can recover: $100,000 × 70% = $70,000

Exam Tip: Oregon uses 50% modified comparative negligence. If you're 51% or more at fault, you recover nothing.

SR-22 Certificate

An SR-22 is proof of financial responsibility required for:

When SR-22 is Required:

• DUI/DUII convictions
• Driving without insurance
• Multiple traffic violations
• License suspension/revocation
• At-fault accident without insurance

SR-22 Details:

• Filed by insurer: With Oregon DMV on behalf of driver
• Duration: Typically 3 years
• Higher premiums: High-risk driver classification
• Continuous coverage: Lapse triggers license suspension
• Notification: Insurer must notify DMV if policy cancelled

Oregon Assigned Risk Plan

For drivers unable to obtain coverage in the standard market:

• Last resort: High-risk drivers
• Higher premiums: Typically 2-3x standard rates
• Minimum coverage: Meets state requirements
• Exit strategy: Move to standard market when eligible