Auto Insurance in Oregon


The Beaver State offers an incentive to drivers who drive limit the amount of miles they drive. Called “Pay as You Go” auto insurance, Oregonians receive discounts on their automobile insurance polices based on the number of miles driven. The state of Oregon even offers tax credits to auto insurance companies for offering this program, called a time-based rating plan.

Consumers are rewarded for driving fewer miles with decreased auto insurance premiums. Oregonians benefit by decreased exposure to greenhouse gases, reduced oil consumption and fewer car accidents.

To find out more about this program call 503-947-7984 in Salem or 888-877-4894, toll-free.

Oregon’s mandatory auto insurance requirements

Every motorist in Oregon is required to meet the minimum auto liability coverages, according to Oregon law, which states the following auto insurance liability minimums:

  • $25,000 – Bodily Injury (BI), one person
  • $50,000 – BI, multiple victims
  • $20,000 – Property Damage

Motorists are also required by state law to carry the following coverages:

  • $15 000 – Personal Injury Protection (PIP)
  • $25,000 – Uninsured Motorist Bodily Injury (UMBI)/Underinsured Motorist (UIM), per person
  • $50,000 – UMBI/UIM, per crash

PIP covers road users regardless of fault.

Providing proof of insurance

Proof of the mandatory liability coverage is required and must be provided when registering a motor vehicle or when requesting a permit to drive in the state.

Failure to provide proof of insurance may also result in the vehicle being towed, in which instance the owner is responsible for towing and storage fees, in addition to fines and suspensions.

Acceptable documents to prove insurance include:

  • Insurer issued, temporary card
  • Insurance binder or premium receipt
  • Up-to-date policy declarations page
  • The actual policy document proving liability insurance
  • Certificate from the auto insurer or their agent
  • Motor vehicle registration, plus valid insurance ID
  • Copy of rental agreement, specifying insurance coverage

It is also important to note that the Oregon DMV monitors insurance compliance randomly by vehicle. If randomly selected, the DMV will request your insurance information including the policy number and name of your insurance company. If you fail to respond to this request, the state has the right to revoke your driver’s license.

If a driver knowingly supplies the DMV with false information, that individual will be required for a period of three years to submit an SR-22 to the state of Oregon, proving financial responsibility.

The consequences of driving without auto insurance

If you drive in Oregon without the minimum required liability auto insurance you can be subject to fines and possible suspension of your driver’s license. Also, the state can tow your vehicle. Having your car towed results not only in being assessed to towing charges, but you will be required to pay any costs of storage in addition to fines.

If convicted of driving without the proper auto insurance, you will be required to file with the Oregon Department of Motor Vehicles (DMV) a “proof of future responsibility,” form SR-22.  This filing will need to occur for three years. If you fail to file, the state will suspend your driver’s license and charge you fines and possible court administrative costs.

In the event that you are in a car accident while uninsured, the state will suspend your driver’s license for a period of twelve months. Following the period of suspension, your driving privileges can be reinstated by filing an SR-22 form with Oregon’s DMV. Again, you will be required to file this form with the DMV for a period of three years.

Young driver coverage

Drivers below the age of 21 years are classified as ‘young drivers.’ Under Oregon law the same mandatory liability insurance cover applies to these drivers.

Oregon—no-fault or tort state?

The state of Oregon is a Tort state. This means that the at-fault driver may be pursued to pay medical expenses as well as compensation to injured parties. The at-fault driver is responsible for paying medical expenses, loss of earnings and pain and suffering.

Average Annual Cost of Auto Insurance

According to, the 2011 average annual auto insurance premium for Oregonians $1306, significantly lower than the national average, which is $1561.



Oregon Department of Insurance
Tel 503-947-7980; 888-877-4894
Tel 503-947-7984 (Consumer Protection)