Oregon Auto Insurance Laws
Auto Insurance Laws and Trends in OR
Under Oregon's no -fault insurance system, all drivers are required to purchase minimum limits for bodily injury, property damage, and personal injury protection (PIP). No -fault insurance mandates that all parties involved must pay for their own medical expenses and damages. If medical costs exceed the limit of the PIP coverage, the injured party has a right to sue the responsible party for compensation. PIP covers the driver, passengers, and all members of the household even if they sustain injuries as a pedestrian.
What are the minimum auto insurance requirements in Oregon?
In Oregon, as it is in many other states, drivers are required to carry minimum levels of auto insurance coverage. Minimum limits are as follows:
- Bodily injury: $15,000 per person and $30,000 per accident
- Property damage: $15,000 per person
- Personal injury Protection: $5,000 (will pay medical expenses, dental expenses, funeral expenses, and loss of wages up to $1,250 per month for 52 weeks).
Drivers can also opt to purchase a single limit policy that will cover a minimum of $35,000. It is recommended that all drivers purchase higher limits as medical expenses and vehicle repair costs increase every year.
Credit scores and auto insurance in Oregon
One of the determining factors in auto insurance premiums in the state of Oregon is credit score. Most insurance companies believe that individuals with poor credit scores are more likely to file a clam and thus cost the insurance company more money. People with bad credit will pay up to 47% more for insurance premiums than those who have good credit. Credit score alone; however, is not a reason for an insurance company to cancel or deny a policy.
Credit score can be a little misleading and unfair according to many consumers. An individual driving a sports car with multiple traffic violations but good credit may actually pay less than someone who has a spotless driving record, drives a car equipped with anti-theft and safety devices, but has a poor credit score.