Car insurance costs in the Beaver State exhibit an interesting divergence. The average expense for minimum state-required liability-only coverage is relatively high, although it remains slightly below the US average. Conversely, the average cost for a full coverage policy is notably more affordable, significantly undercutting the national average. The ratio of uninsured drivers is 10.7%, which is below the national average of 12.6%. Vehicle ownership rate is fairly high in OR as there is almost one car per head in this state.
Oregon Vehicle Insurance Requirements
Oregon’s minimum car insurance requirements include liability coverage, Personal Injury Protection (PIP), and Uninsured Motorist Bodily Injury coverage. Here are the minimum limits:
- $25,000 for bodily injury per person.
- $50,000 total for bodily injury per accident.
- $20,000 for property damage.
- $15,000 per person for Personal Injury Protection.
- $25,000 per person, $50,000 per accident for Uninsured Motorist Bodily Injury coverage
You can see these figures on the state Department of Motor Vehicles site.
Oregon adheres to a traditional “fault”-based auto insurance system when determining financial responsibility for losses resulting from a car accident, including injuries, lost income, and vehicle damage. In this system, the person who is found at fault for causing the accident is also responsible for compensating the injured parties for their losses.
While Oregon does not operate as a mandatory no-fault car insurance state, where individuals must rely solely on their personal injury protection (PIP) coverage within their own insurance policy to cover medical expenses and other out-of-pocket costs following an accident, PIP coverage is still a requirement in the state. In simpler terms, having PIP coverage on your policy provides you with the option to file a claim with your own insurer for injuries sustained. However, you also retain the choice to pursue a claim against the at-fault parties or their insurance companies, or even to file a lawsuit to seek compensation for your injuries. This allows for flexibility in seeking compensation after a car accident in Oregon.
Automobile Insurance Prices in Oregon
The average minimum state-required car insurance cost is $616 and that is only just under the national average. However, the average premium for a full coverage policy is only $1,415 and that is about $600 cheaper than the national average.
Considering full coverage auto insurance policies are on average fairly affordable, this may encourage motorists to choose this option over a liability-only policy. A full coverage policy comes with Collision and Comprehensive coverage that protect your automobile against accidents, fire, theft, vandalism and weather-related damages. It also typically offers higher Liability coverage limits than the minimum coverage required in OR.
Cheaper Car Insurance Companies in Oregon
Finding the cheapest provider helps a lot while searching for lower premiums. You can check these companies for the best rates first and line up a few others to get quotes from. Remember that the most competitive carrier will change depending on your circumstances. For example, the carriers below may not be cheap if you have a bad record.
- State Farm
- Country Financial
- Oregon Mutual
- Geico
- American Family
The insurance companies mentioned above maintain their competitive edge in most cities across Oregon, where affordable vehicle insurance premiums are the norm, with most cities hovering around the average prices. However, two cities stand out as relatively expensive in comparison to the rest: Portland, with an average auto insurance premium 22% higher than the state average, and Gresham, with a 34% higher premium.
Portland, known for its unique culture and a wealth of attractions like coffee shops, boutiques, gourmet restaurants, and microbreweries, also boasts a reputation as one of the greenest cities in the country. Given its status as the largest city in the state, it’s unsurprising that it carries higher car insurance rates compared to other areas in Oregon.
Notable Oregon Vehicle Insurance and Driving Facts
- In Oregon, it’s mandatory for all occupants in a vehicle to wear a seat belt, regardless of their age or the seat they occupy. Failure to do so can result in being pulled over by law enforcement, so it’s important to buckle up to ensure compliance with the law, save lives and avoid receiving a ticket.
- According to NICB data, Portland, OR is one of the metro areas with the top five highest auto thefts in 2021. Also auto thefts are on the increase in Oregon. You need Comprehensive coverage vehicle insurance to be protected against thefts as well as fire, vandalism, acts or nature and more.
- Driving without insurance in Oregon results in severe penalties, including fines, automatic license suspension, registration revocation, and potential vehicle impoundment. To regain driving privileges, individuals typically need to have their insurance company file an SR-22 form as proof of future financial responsibility, which must be maintained for three years. If involved in an accident without insurance, even if not at fault, a one-year license and registration suspension can be imposed.
- Oregon is known for imposing some of the most stringent penalties for reckless driving, which can include speeding. Reckless driving in Oregon is defined as knowingly disregarding a substantial and unjustifiable risk that a certain result will occur. Conviction for reckless driving in Oregon can lead to severe consequences, including maximum penalties such as fines of up to $6,250, imprisonment for up to a year, and probation lasting for up to five years, as indicated by romanolawpc.com.
- Oregon is one of the most dangerous states for drunk driving based on the rates of fatal accidents involving drunk drivers and drunk driving issues recorded.
- And according to Forbes, a speeding ticket increases automobile insurance rates by 27% and DUI conviction by 68% on average.
- Weather-related fatal crash ratio is fairly high in Oregon and rain is the main cause of accidents, although there are a few snow related fatal crashes as well.
Even within a state characterized by relatively low car insurance premiums, some motorists may find themselves burdened with high premium costs. This can often be attributed to factors such as a history of poor driving or credit, youth and inexperience as a driver, or simply not seeking alternative insurance quotes. In many cases, individuals may maintain higher premiums without realizing that better coverage and lower prices are available in the market. Consequently, it’s advisable for Oregonian drivers to proactively shop around for insurance quotes at least once a year to ensure that their premiums remain fair and affordable.