Oregon Car Insurance Laws: How Much Coverage Do I Need?

While minimum coverage in Oregon can be a cost-effective option on a monthly basis, full coverage can give drivers long-term rewards and peace of mind.
Written by Bonnie Stinson
Edited by Amy Bobinger
Oregan drivers are required to have coverage when operating their vehicle. The amount of coverage you need depends on your unique driving habits and lifestyle, so it is best to compare quotes.

Car insurance requirements in Oregon

In Oregon, all drivers must carry the following car insurance coverage: 
  • Bodily injury liability: $25,000 per person/$50,000 per accident  
  • Property damage liability: $20,000 per accident
  • Personal injury protection: $15,000 per person
  • Uninsured/underinsured motorist coverage: $25,000 per person/$50,000 per accident
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You don’t need to worry about remembering those requirements when you go to buy car insurance, though—all state minimum coverage will be included automatically in any policy you buy.
It’s up to you to decide if you want
more than the state minimum
coverage. You can select specific coverages you want included in your policy in the app.

Is minimum coverage the most cost effective option? 

While a minimum coverage auto insurance policy is the most cost-effective option on a monthly basis, it could leave you financially vulnerable.
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Full coverage is the most cost effective option overall, as you will be paying lower out-of-pocket costs and deductibles if anything were to happen to your car.
can help you find the full coverage option that best works for you.
Consider these common
types of car insurance
if you want to drive with peace of mind and obtain a plan that goes beyond just liability coverage: 
  • Collision coverage
    : This auto insurance coverage helps pay for damages to your vehicle if you’re involved in an accident with another car or object, no matter who’s at fault.
  • Comprehensive coverage
    : This coverage covers damages to your vehicle from non-collision occurrences that fall under the property damage liability umbrella, such as theft, vandalism, and natural disasters. 
Most finance or lease companies will require comprehensive coverage and a collision car insurance policy. However, if you aren’t required to carry these forms of coverage, it’s still a good idea to purchase them in case your car is damaged or stolen. 
Full coverage insurance in Oregon costs an average of $1,755 a year (or $146 a month), while a state minimum policy costs an average of $807 per year (or $67.25 a month). 

Optional coverage in Oregon

While Oregon legally requires that all drivers carry liability insurance, along with uninsured/underinsured motorist coverage and PIP, there are still a number of helpful coverage options not required in minimum insurance plans that provide further protection.
  • Comprehensive: For any physical damage that occurs to your vehicle due to non-collision related events, such as theft, natural disasters, or animal run-ins.
  • Collision: To pay for damages resulting from a collision with another car or object, regardless of fault.
  • Gap coverage: To pay the difference between the value of your car with the depreciation factored in and what you still owe on your car loan if you finance your vehicle and get in a major accident. 
  • Rental car reimbursement: For paying towards the cost of a rental car if your vehicle is damaged and unable to be driven, but limits vary by carrier. 
  • Roadside assistance: To help you out if you find yourself broken down on the side of the road when you need to cover towing costs, fix flat tires, childcare, and even stay overnight in a hotel. This coverage varies depending on carrier and insurance plan.
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Car insurance rates vary significantly from person to person.
We can’t tell you exactly what it will cost you to obtain the coverage you need, so take the time to
compare quotes
on from some of Oregon’s top insurance providers to make the best decision for your driving habits and lifestyle.
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Penalties for driving without insurance in Oregon

If you are an uninsured driver in Oregon and are caught by law enforcement, you could face a $265 presumptive fine (with additional fines of $135-$1,000 in court), registration and license suspension, possible vehicle impoundment, a $75 for a reinstatement fee that needs to be paid at the DMV, and proof of insurance compliance for three years following.


Is car insurance mandatory in Oregon?

Yes, you must have car insurance to drive a vehicle in the state of Oregon. 

What auto insurance is required by law in Oregon?

The minimum liability limits for insurance coverage in Oregon are $25,000 in bodily injury coverage per person, $50,000 per accident, and $20,000 in property damage coverage. This coverage is required in order to drive a vehicle in Oregon. 

Can someone drive my car if they are not on my insurance in Oregon?

If you have a friend or family member who borrows your car every once in a while, they do not need to be named on your policy. However, if someone you know is a regular driver in your car, you will want to add them as a regular but occasional driver to your policy.
Insurance follows the car in Oregon, as in most states. You can allow someone to temporarily drive your vehicle and the car will be covered under your policy according to
permissive use
, as long as the person isn’t listed as an excluded driver on your policy. 
This does not work if the person is a family member or living in the same household as you. In this case, the regular driver should be added to your policy as a named driver.
Oregon is an at-fault state, which means that the at-fault driver (and their insurance) is responsible for covering damages after an accident.
You will have to pay a fine between $265 and $1,000 and your license and registration will be suspended. Your vehicle could be impounded and you’ll be subject to SR-22 high-risk filing requirements for a period of three years.
Within 72 hours, you must file an Oregon Traffic Accident and Insurance Report. Then, you have two years from the date of the auto accident to file or settle your claim.
Yes. If you drive without insurance (no pay), you give up your right to sue for pain and suffering. You also forfeit these rights by driving reckless or under the influence.
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