Car Insurance Requirements in Oregon (2024)

Every state has its own set of car insurance requirements. Some states only require liability insurance. However, Oregon requires additional coverage.

It’s critical that you understand Oregon’s car insurance requirements. This knowledge will help you avoid fees and penalties for driving while uninsured. Additionally, comparing car insurance quotes from multiple insurers can help you find the cheapest coverage for your needs.

Keep reading to learn more about Oregon car insurance requirements.

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Oregon car insurance requirements

The state of Oregon requires drivers to purchase a few different coverage types. Oregon drivers must meet the following minimum car insurance requirements:

• Bodily injury liability: $25,000 per person and $50,000 per accident

• Property damage liability: $20,000 per accident

• Personal injury protection (PIP): $15,000 per person

• Uninsured motorist: $25,000 per person and $50,000 per accident

Bodily injury liability

If you cause a car accident, your bodily injury liability covers the other driver’s medical treatment and expenses related to injuries from the accident. Bodily injury can also pay for some costs related to the other driver’s resulting pain and suffering and lost wages, as well as your legal costs.

Property damage liability

Property damage liability covers costs to repair any property that you damage in an at-fault car accident. Covered property includes other vehicles, houses, guardrails, mailboxes, and businesses. This coverage may also cover your legal costs for lawsuits filed against you related to the accident.

Personal injury protection (PIP)

Personal injury protection helps pay for your expenses after a car accident — such as lost wages, medical bills, and funeral costs — regardless of fault. PIP coverage extends to your injured passengers, too. The coverage can also apply if you aren’t driving. If a car hits you while you’re walking, PIP coverage could help pay for your medical expenses.

Uninsured motorist

Oregon requires its drivers to carry car insurance, but that doesn’t mean everyone does. Around 10.7% of motorists in Oregon are uninsured, making uninsured motorist coverage so important.^[4] It protects you if a driver without car insurance hits you. Additionally, you could file an uninsured motorist claim if you’re ever the victim of a hit-and-run.

Uninsured motorist insurance covers your and your passengers’ injuries following a car accident. It also covers your vehicle damage if an uninsured driver hits you.

Do you need more than the state-minimum coverage in Oregon?

Oregon law only requires you to carry bodily injury and property damage liability, PIP, and uninsured motorist coverage. However, you may want to consider adding more coverage because the minimum car insurance doesn’t pay for your vehicle damage after an accident.

Insurance professionals encourage drivers to purchase more coverage than the state requires. If you cause an accident and only have liability coverage, you’ll face out-of-pocket costs for your accident-related expenses. You should consider getting a full-coverage policy, which includes liability, comprehensive, and collision coverages.

Liability-only car insurance typically costs less than full-coverage insurance. Oregon drivers pay an average of $99 per month for liability coverage and $163 per month for full-coverage insurance.

Your circumstances can help you decide if liability or full coverage is right for you. For example, liability coverage may meet your protection needs if you drive an inexpensive or old vehicle that you’ve paid off. You may want full coverage if you have a newer or more expensive vehicle. In fact, your lender may even require you to carry this coverage if you have a lease or finance your vehicle.

The cost of liability-only car insurance in Oregon

Liability coverage pays for property damage and bodily injuries another person suffers due to a car accident you cause. It doesn’t cover your own accident-related property damages. The fact that liability coverage doesn’t pay for your vehicle damage makes it a less expensive coverage option than full-coverage insurance.

Mile Auto offers the cheapest liability-only car insurance coverage in Oregon, at $60 per month.

Below, you can compare quotes from Oregon insurers offering the cheapest liability car insurance.

The cost of full-coverage car insurance in Oregon

Full-coverage car insurance offers the same protections as a liability policy, plus comprehensive and collision coverages.

Comprehensive car insurance pays for vehicle damage from non-collision incidents, including events beyond your control, like theft, vandalism, and severe weather. Collision car insurance helps pay for vehicle repairs after you’ve hit another vehicle or object.

​​Mile Auto has the cheapest full-coverage car insurance rates in the state of Oregon. The following list features the average monthly rates for full coverage from other insurers.

Penalties for driving without proof of insurance in Oregon

It’s illegal to drive without car insurance in Oregon. If a police officer pulls you over or you have an accident without proof of insurance, you can face a number of penalties, including:

• Fines: You’ll pay a penalty of at least $130, but up to $1,000, depending on the court’s decision.

• License suspension: The Oregon Driver and Motor Vehicle Services Division (DMV) can suspend your driver’s license for one year. You’ll have to purchase a car insurance policy to get your license back.

• SR-22 insurance: After you get your license back, your car insurance company will have to file an SR-22 certificate with the DMV — for an additional fee — to prove you have insurance. The SR-22 must stay on file with the DMV for three years.

• Financial damages: You can face a lawsuit if you cause a car accident as an uninsured driver. If you can’t pay for the damages within 60 days, you can face license suspension until you pay.

Optional car insurance coverages to consider

Having more coverage provides better protection for you and your vehicle. Buying liability, comprehensive, and collision coverages is a good start, but you also have other optional insurance coverages to consider. Consider the following common insurance add-ons:

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  Roadside assistance coverage

  Roadside assistance provides coverage for roadside emergencies, including services like jump-starting a dead battery, replacing a flat tire, and delivering fuel.

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  Rental car reimbursement coverage

  Rental car reimbursement pays for your car rental costs while your vehicle’s in the repair shop due to a covered claim.

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  Gap coverage

  Gap insurance helps pay off your car loan if you total your vehicle or someone steals your car and you owe more than the car is worth. It pays the gap between your vehicle’s depreciated value and your loan’s remaining balance.

Oregon car insurance requirements FAQs