Oregon Auto Insurance Requirements
Oregon auto insurance requirements provides you with an understanding that an auto insurance policy has six specific functions and Oregon’s minimum requirements for auto insurance.
Below is a list of the coverage options and why you need them:
This coverage applies to injuries you, the designated driver or policyholder cause to someone else. Your auto insurance is going to cover you, family members who live with you and anyone else who you give permission to drive your vehicle.
Basic liability protection would be enough coverage if you rent and have minimal savings or investments. Standard protection would be enough if you own a home, have some savings and a steady income. Superior protection would be appropriate if you own a home and have significant assets or income; an umbrella policy should be considered if you fall into this realm.
If you don’t carry enough liability coverage, you may be sued for your personal assets – your home, savings, investments, or even future income. It is important to make certain that you purchase as much as you need to protect your assets.
Regardless of the value of your personal assets I recommend liability coverage of no less than $100,000 per person, $300,000 per accident and $100,000 in property damage.
Liability does not cover your injuries. It covers injuries to others, which is also called third party claims.
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hits.
Personal Injury Protection can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs. You don’t have to be in the car to collect this coverage as you can also be a pedestrian.
To be eligible for loss of income benefits, you must be disabled by doctor’s orders (provide disability slip) and be unable to work for 14 consecutive days.
This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Even if you are at fault for any accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll be reimbursed for the deductible.
This coverage applies to any direct and accidental loss not caused by collision. It will reimburse you for loss due to: fire, theft or larceny, windstorm, hail, water or flood, malicious mischief or vandalism, contact with a bird or animal, & glass breakage. You would be covered under comprehensive coverage if a tree fell onto your car, if a thief were to steal your car radio or even steal your car.
This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. This coverage comes into play when an at-fault driver has insufficient insurance to pay for your loss. This coverage will also protect you if you are hit as a pedestrian by someone who is either uninsured or under insured.
This coverage provides for payment of a rental vehicle up to the amount you select as a result of a covered loss.
This covers towing and labor costs when a covered auto is disabled up to the coverage limit ($50, $75, $100 per disablement). The coverage is intended to provide only for emergency service and for labor performed only at the place of disablement. This includes lockout, tire changing, even if you run out of gas.
As an insurance broker I help individuals throughout Oregon and the Pacific Northwest manage risk.