Oregon Auto Insurance Requirements: Minimum Coverage (2026)

Quick Answer: Oregon Minimum Auto Insurance

Oregon requires all drivers to carry liability insurance with these minimum limits:

This is commonly written as 25/50/20. Oregon also mandates PIP coverage and uninsured/underinsured motorist protection—these cannot be waived without written rejection.

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What Oregon Law Requires

Under Oregon Revised Statutes (ORS) 806.010, all drivers must:

1. Maintain liability insurance meeting minimum requirements
2. Carry mandatory PIP coverage ($15,000 minimum)
3. Have UM/UIM protection (unless waived in writing)
4. Provide proof of insurance at traffic stops and accidents
5. Maintain continuous coverage without lapses

Understanding 25/50/20 Coverage

Bodily Injury Liability - $25,000/$50,000

This covers injuries you cause to other people:

• $25,000 maximum per injured person
• $50,000 maximum per accident (total for all injured people)
• Covers medical bills, lost wages, pain and suffering
• Does NOT cover your own injuries

Property Damage Liability - $20,000

This covers damage you cause to others' property:

• Other vehicles you hit
• Buildings, fences, utility poles
• Other personal property
• Does NOT cover damage to your own vehicle

Personal Injury Protection (PIP) - $15,000

This covers YOUR medical expenses regardless of fault:

• Medical and hospital bills
• Lost wages (up to 52 weeks)
• Essential services (childcare, household help)
• Funeral expenses
• Covers you and passengers in your vehicle

Uninsured/Underinsured Motorist - $25,000/$50,000

This protects YOU when hit by uninsured or underinsured drivers:

• Covers your injuries from uninsured drivers
• Covers hit-and-run accidents
• Can be rejected with written waiver (not recommended)
• Oregon has ~10% uninsured drivers

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Oregon's Mandatory PIP Coverage

Oregon is a "no-fault" state requiring Personal Injury Protection:

What PIP Covers

How PIP Works

• Your PIP pays YOUR medical bills regardless of who caused accident
• No need to wait for fault determination
• No deductible on medical expenses
• Coordinates with health insurance
• Reduces litigation over minor injuries

Why it matters: PIP ensures you get immediate medical treatment without fighting over fault. It pays quickly, unlike liability claims that can take months.

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Penalties for Driving Uninsured in Oregon

Oregon takes uninsured driving seriously:

First Offense

Second Offense (within 5 years)

Third Offense

If You Cause an Accident While Uninsured

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Oregon Insurance Verification System

Oregon uses electronic insurance verification:

How It Works

1. Insurers report coverage to Oregon DMV database
2. DMV monitors all registered vehicles
3. Automatic suspension triggered by coverage lapse
4. Law enforcement verifies at traffic stops electronically

What Happens When Coverage Lapses

Day 1: Insurance company notifies Oregon DMV of cancellation

Day 5: DMV sends suspension warning to your address

Day 30: If no proof of insurance, driving privileges suspended

To reinstate:

• Provide proof of current insurance (form SR-22 may be required)
• Pay $75 reinstatement fee
• Pay any outstanding fines
• Future proof of insurance filing (if required)

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Why Oregon's Minimums Aren't Enough

While Oregon has moderate minimums, they're inadequate for many accidents:

Real-World Cost Comparison

What Happens When Minimums Aren't Enough

Example: You cause an accident injuring two people ($80,000 medical bills) and totaling a Tesla ($65,000).

• Total damages: $145,000
• Your 25/50/20 coverage pays: $70,000 maximum
• You owe: $75,000 out of pocket

The injured parties can:

• Sue you for the remaining amount
• Garnish your wages (up to 25% in Oregon)
• Place liens on your home/property
• Force bankruptcy to satisfy judgment

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Recommended Coverage for Oregon Drivers

Insurance experts recommend these coverage levels for Oregon:

Minimum Recommended: 50/100/50

Better Protection: 100/300/100

Additional Coverages to Consider

Collision Coverage

• Pays to repair your car after accidents
• Required if you have a loan or lease
• Subject to deductible ($250-$1,000)
• Cost varies by vehicle value

Comprehensive Coverage

• Covers theft, vandalism, weather, animals
• Essential in Oregon (deer collisions common)
• Subject to deductible
• Covers flood damage (frequent in winter)

Umbrella Liability

• Provides $1-5 million additional coverage
• Covers liability beyond auto policy limits
• Also covers home liability
• Cost: $200-500 annually for $1 million

Medical Payments (MedPay)

• Supplements PIP coverage
• No-fault coverage for medical bills
• Typical limits: $5,000-$25,000
• Cost: $50-150 annually

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SR-22 Requirements in Oregon

Some drivers must file an SR-22 certificate:

When SR-22 Is Required

• DUI/DWI conviction
• Reckless driving conviction
• Multiple moving violations
• At-fault accident while uninsured
• Driving with suspended license
• Accumulating excessive points

SR-22 Requirements in Oregon

How to Get SR-22 in Oregon

1. Contact insurance company that offers SR-22 filing
2. Purchase policy meeting Oregon state minimums
3. Insurer files SR-22 electronically with Oregon DMV
4. Pay reinstatement fees to DMV
5. Maintain continuous coverage for required period
6. Any lapse restarts the clock and suspends license

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Special Considerations for Oregon Drivers

Winter Weather and Collision Coverage

Oregon winters create unique risks:

Why collision coverage matters:

• Frequent ice/snow accidents (especially mountain passes)
• Hydroplaning on wet roads (Portland area)
• Black ice in Willamette Valley
• Collision coverage pays regardless of fault

Wildlife Collisions

Oregon has high deer collision rates:

• Comprehensive coverage covers animal strikes
• Deer collisions peak October-December
• Average repair cost: $4,000-$10,000
• Rural areas have highest risk

Uninsured Motorist Rate

Oregon has approximately 10% uninsured drivers (near national average). UM/UIM coverage is critical protection—higher limits recommended.

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How Much Does Oregon Auto Insurance Cost?

Average annual premiums in Oregon:

Factors affecting your rate:

• Age and driving experience (under 25 pay 50-100% more)
• Driving record (DUI increases rates 80-150%)
• Location (Portland more expensive than rural)
• Vehicle type and value
• Credit score (significant factor in OR)
• Annual mileage
• Coverage levels and deductibles

Oregon vs. Neighboring States

Oregon rates are moderate but higher than Idaho due to mandatory PIP coverage.

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Frequently Asked Questions

Is car insurance required in Oregon?

Yes. Oregon law requires all drivers to carry minimum liability insurance of 25/50/20 plus mandatory PIP coverage. Uninsured driving results in fines up to $10,000, license suspension, and potential jail time for repeat offenses.

Can I reject PIP coverage in Oregon?

No. PIP coverage is mandatory in Oregon and cannot be rejected. You can, however, purchase higher PIP limits ($25,000, $50,000, or more) for better protection.

Can I reject uninsured motorist coverage?

Yes, but it's not recommended. You can reject UM/UIM coverage with a written waiver. However, with ~10% of Oregon drivers uninsured, this protection is valuable.

What happens if I let my insurance lapse in Oregon?

Your insurer notifies Oregon DMV within days. DMV sends a suspension warning. If you don't provide proof of insurance within 30 days, your driving privileges are suspended. Reinstatement requires proof of insurance, a $75 fee, and potentially SR-22 filing.

Can I drive in Oregon with out-of-state insurance?

Yes, if you're visiting. Your out-of-state policy covers you temporarily. However, if you become an Oregon resident, you must obtain Oregon insurance within 30 days of establishing residency.

Does Oregon have no-fault insurance?

Partially. Oregon requires PIP coverage (a no-fault benefit), but you can still sue for serious injuries. This makes Oregon a "choice no-fault" or "add-on" state—you get PIP benefits plus the right to sue.

How do I get insurance with a DUI in Oregon?

Options include:

• Non-standard insurers (higher rates but more flexible)
• SR-22 specialists
• State assigned risk pool (last resort)
• Shopping around—rates vary significantly
• Expect 80-150% rate increase for 3-5 years

What is Oregon's good driver discount?

Most insurers offer 10-25% discounts for:

• No accidents in 3-5 years
• No violations in 3 years
• Defensive driving course completion
• Safe driving habits (telematics discount)

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Key Takeaways

• Oregon requires 25/50/20 minimum liability coverage
• PIP coverage is mandatory ($15,000 minimum) and cannot be waived
• UM/UIM coverage required unless rejected in writing (not recommended)
• State minimums are inadequate for many real-world accidents
• Recommended coverage: At least 50/100/50 with $25,000 PIP
• Electronic monitoring catches insurance lapses within days
• Penalties are severe: Up to $10,000 fine and 1 year suspension
• SR-22 required for DUI and major violations (3 years)
• Winter weather and wildlife make collision/comprehensive coverage important

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Important Disclaimer

This guide provides general information about Oregon auto insurance requirements based on publicly available sources. This is not legal or insurance advice. Requirements and laws can change. Always verify current requirements with the Oregon Department of Transportation and Department of Consumer and Business Services.

Consult with a licensed insurance professional for advice specific to your situation.

Last verified: January 2026

Sources: Oregon Department of Transportation (ODOT), Oregon Revised Statutes, Oregon Department of Consumer and Business Services, Oregon DMV