Oregon auto insurance requirements set three mandatory coverages for every driver: liability insurance at minimum limits of $25,000 per person and $50,000 per accident for bodily injury plus $20,000 for property damage, personal injury protection (PIP), and uninsured motorist coverage that also includes underinsurance protection. Oregon is a fault-based state, so the driver who caused a crash is financially responsible for the other party’s losses.
Minimum Liability Coverage
State law sets a 25/50/20 floor for every liability policy:1Oregon Revised Statutes. Oregon Code 806.070 – Minimum Payment Schedule
- $25,000 for bodily injury or death of one person in a single accident
- $50,000 total for bodily injury or death when two or more people are hurt in the same accident
- $20,000 for damage to another person’s property in a single accident
Those are floors, not ceilings. The $50,000 aggregate means that if three people are injured in one crash, the total payout for all of them tops out at $50,000, with no single person receiving more than $25,000. Hospital bills eat through that quickly. The $20,000 property damage limit barely covers a newer vehicle, let alone structural damage to a building or a guardrail.
If a court judgment exceeds your policy’s limits, the injured party can pursue your personal assets for the difference. Drivers with a home, savings, or steady income have good reason to buy higher limits than the minimum.
Personal Injury Protection
Every private passenger vehicle policy sold in Oregon must include PIP benefits. PIP is no-fault: it pays out regardless of who caused the accident. You, your household family members, passengers in your vehicle, and pedestrians struck by your vehicle are all covered.2Oregon Revised Statutes. Oregon Code 742.520 – Personal Injury Protection Benefits for Motor Vehicle Liability Policies
Minimum PIP benefits cover three categories:
- Medical expenses up to $15,000 per person for reasonable and necessary medical, hospital, dental, surgical, ambulance, and prosthetic costs incurred within two years of the accident
- Lost wages at 70 percent of your income, capped at $3,000 per month for up to 52 weeks, if disability lasts at least 14 days
- Essential services up to $30 per day for hired help if you don’t work outside the home and your injuries keep you from household duties, again for up to 52 weeks
Watch the two deadlines. Medical costs incurred after the two-year window aren’t covered, and wage benefits don’t apply if your disability resolves before day 14.3Oregon Revised Statutes. Oregon Code 742.524 – Contents of Personal Injury Protection Benefits
PIP’s practical value is speed. A liability claim against the at-fault driver can take months or years to resolve, while PIP starts paying your medical bills and lost income right away. You can still pursue a fault-based claim against the other driver on top of collecting PIP benefits.
Uninsured and Underinsured Motorist Coverage
Every Oregon auto policy must include uninsured motorist (UM) coverage, and that coverage must also include underinsurance protection. Your policy covers you in two scenarios: when the other driver has no insurance at all, and when the other driver’s policy is too small to cover your injuries.4Oregon Revised Statutes. Oregon Code 742.502 – Uninsured Motorist Coverage; Underinsurance Coverage
By default, UM and underinsured motorist (UIM) limits match your bodily injury liability limits. Carry 50/100 liability and your UM/UIM starts at 50/100 as well. You can elect lower UM/UIM limits in writing, but never below the state minimum of $25,000 per person and $50,000 per accident. If you choose lower limits, your insurer must have you sign a statement within 60 days acknowledging you were offered the higher amount and explaining what the coverage provides.
One boundary matters: UM/UIM applies only to bodily injury, not property damage. If an uninsured driver rear-ends you and totals your car but you walk away unhurt, UM coverage won’t pay for the repairs. Collision coverage on your own policy is what handles that.
Proof of Insurance
Oregon drivers must keep proof of insurance in each vehicle that operates on public roads. An officer can ask to see it during any traffic stop, and failure to produce it gives the officer reasonable grounds to believe you’re driving uninsured.5Oregon Revised Statutes. Oregon Code 806.011 – Proof of Insurance; Rules
A smartphone or other electronic device counts. Oregon law protects you here: displaying your insurance information on your phone does not give the officer permission to search anything else on the device. A physical card works too.
Penalties for Driving Without Insurance
Driving without insurance is a Class B traffic violation in Oregon.6Oregon Revised Statutes. Oregon Code 806.010 – Driving Uninsured Prohibited; Penalty The presumptive fine is $265.7Oregon Revised Statutes. Oregon Code 153.019 – Presumptive Fines; Generally
After a conviction, you must file proof of financial responsibility with the Oregon DMV and keep it on file for one year. Most people satisfy this through an SR-22 form from their insurer, which guarantees to the state that you’re carrying at least the minimum coverage. If your policy lapses during that year, your insurer notifies the DMV and your driving privileges get suspended.
The consequences escalate if you were uninsured at the time of an accident. In that situation, the DMV suspends your driving privileges and requires proof of future financial responsibility for three years rather than one. Your license stays suspended until you comply. A ticket on a routine traffic stop is one problem; getting caught uninsured in a crash is a much larger one.
Premiums are the quieter cost. Drivers who need an SR-22 are treated as high-risk, and the resulting surcharge sticks for the entire filing period.
How Fault and Comparative Negligence Affect a Claim
Oregon resolves auto accident claims on fault. The driver who caused the crash bears financial responsibility for the other party’s medical bills, lost income, property damage, and pain and suffering. That is the opposite of a no-fault state, where each driver’s own insurer pays regardless of blame.
Oregon applies modified comparative negligence. You can recover damages from the other driver as long as your share of fault does not exceed the combined fault of everyone else involved. Found 40 percent at fault against a 60 percent at-fault driver, you still recover, but your award is reduced by your 40 percent share. At 51 percent or more, you recover nothing.8Oregon Revised Statutes. Oregon Code 31.600 – Contributory Negligence Not Bar to Recovery
That rule shapes negotiations. Adjusters often argue that the injured party shares some blame to reduce the payout, and even a 10 or 20 percent fault allocation can shave thousands off a settlement. Photos, witness information, and a police report from the scene are what protect your recovery later.