How To Comply with Oregon Car Insurance Laws
Many states differ slightly when it comes to regulations regarding car insurance. So, if you’re an Oregon driver, understanding Oregon car insurance laws is essential to ensure you have appropriate coverage and avoid fines and penalties for non-compliance. Oregon car insurance laws include minimum coverage limits, mandatory policies related to personal injury protection, proof of insurance rules, and penalties for non-compliance.
These laws are in place to protect Oregon drivers and help pay for damages in the case of accidents. They also protect other people on the road and their property. Although you can’t control what other drivers do, you can make sure you are in compliance with Oregon car insurance laws by following the guide below.
Minimum Coverage Limits
Oregon car insurance laws require all drivers to carry liability insurance, which covers the costs of injuries and property damage to others (up to the given limits) if you are at fault in an accident.
At minimum, Oregon drivers must have:
- Bodily injury liability: $25,000 per person; $50,000 per accident
- Property damage liability: $20,000 for damage to others’ property
- Personal injury protection: $15,000 per person
- Uninsured/underinsured motorist coverage: $25,000 per person; $50,000 per accident for bodily injury
Keep in mind that you could be personally responsible for additional costs if damages exceed the limits of your coverage, so it may be worthwhile to consider additional coverage.
Personal Injury Protection
Personal injury protection insurance is mandatory in Oregon. The policyholder can use this insurance coverage to pay for medical expenses, some lost wages, and other related costs for themselves and their passengers, no matter who was at fault in the accident.
Be sure to read through your policy to understand your benefits. Generally, medical expenses can include hospital stays, dental services, surgeries, and ambulance and prosthetic services, but they must be “reasonable and necessary” and must occur within two years of the accident to be eligible for compensation. Other benefits include paying up to 70 percent of lost wages (including salary, tips, wages, profits, commission, and professional fees) if the disability lasts more than 14 days; funeral expenses up to $5,000; and childcare if the injured person is the parent of a minor child and is hospitalized.
Uninsured/Underinsured Motorist Coverage
What do you do if the person at fault doesn’t have insurance? Uninsured or underinsured motorist coverage protects Oregon drivers from other drivers who either have no car insurance at all or do not have enough coverage. As the policyholder, you can also use this coverage if you are the victim of a hit-and-run and do not have information about the other driver involved. Your benefits generally help cover medical expenses and other costs if you are injured.
Proof of Insurance
Oregon car insurance laws require drivers to carry proof of insurance with them while driving, even if they don’t own the car. You should always be prepared to show proof of insurance to law enforcement officers if you are involved in a traffic stop or an accident. Valid formats include a physical or digital insurance identification card supplied by your insurance company, a copy of your insurance policy, or an official letter from your insurance company.
The Department of Motor Vehicles (DMV) will also require proof of insurance when you renew your vehicle registration. If you don’t have insurance coverage, you may be prohibited from renewing your registration.
Penalties for Non-Compliance
Failure to comply with Oregon’s car insurance laws can result in several negative consequences:
Fines
If you are pulled over by law enforcement for a traffic violation or if you are involved in an accident and cannot provide proof of insurance to the police officer or other driver, you can be cited for “failure to carry proof.” Driving without insurance will result in a fine of at least $130 but can be as much as $1,000, depending on the judge. Fines tend to increase if you are a repeat offender.
License Suspension
For a driver involved in an accident who cannot provide proof of insurance, the DMV will suspend their license and require them to buy insurance before they can get their license back. You will need to get an SR-22 Certificate from your insurance company (usually for an extra fee) to show that you have liability insurance and file it with the DMV. It’s important to note that this requirement stands even if you do not own a vehicle.
Financial Responsibility
When you are involved in an accident, insurance helps pay for some of the costs related to injuries and property damage. So, if you are at fault and don’t have insurance, you will most likely be held personally responsible financially for all damages. The injured party can file a lawsuit, and if a judgment rules against you, you must pay within 60 days. Failure to pay the judgment can result in the suspension of your license until you do pay. In some cases, the court could order that money be taken from your paychecks or a lien placed on your property.
Protect Yourself and Your Rights
Having at least the minimum required insurance coverage listed above, always carrying proof of insurance with you while driving, and staying current on your insurance premiums are the first steps in complying with Oregon car insurance laws to avoid fines and other penalties. You might also consider additional coverage, such as collision coverage or coverage for when you drive a rental car. If you have been injured in an accident (including as a pedestrian or bicyclist) and would like some help navigating insurance claims or potentially pursuing a personal injury claim in court, contact the personal injury team at Warren Allen LLP to get the legal help you need and discuss your options. We have years of experience in providing our clients with exceptional service and sound legal advice. Call us today.
