What are the minimum requirements for car insurance in Oregon?

Whether you are cruising down the scenic Pacific Coast Highway or navigating rainy morning traffic on I-5, driving in the Beaver State requires more than just a valid driver’s license. Oregon law strictly requires every motorist to carry a minimum level of auto insurance to ensure drivers can cover potential injuries and property damage.

Driving without adequate coverage can lead to severe fines, vehicle impoundment, suspension of your driving privileges, and the requirement to file an SR-22 certificate. Here is a breakdown of what the state mandates to keep your vehicle legal on the road.

1. Bodily Injury and Property Damage Liability (25/50/20)

Liability insurance pays for the injuries and physical damage you cause to others if you are found at fault in a collision. It does not cover your own vehicle or medical bills. Under Oregon Revised Statutes (ORS 806.070), your policy must include at least:

• $25,000 per person for bodily injury or death.

• $50,000 per crash for bodily injury or death when two or more people are hurt.

• $20,000 per crash for damage to another party’s property (such as their vehicle, fences, or guardrails).

In insurance shorthand, this framework is commonly referred to as 25/50/20 coverage.

2. Personal Injury Protection (PIP)

Unlike pure fault-based states, Oregon requires drivers to carry Personal Injury Protection. PIP is a “no-fault” coverage that pays medical and essential recovery expenses for you and your passengers, regardless of who caused the wreck.

The mandatory state minimum is $15,000 per person. Under standard Oregon rules, PIP covers reasonable and necessary medical, dental, and surgical costs incurred within one year of an accident, along with partial reimbursement for lost wages or essential household services if injuries keep you out of work.

3. Uninsured Motorist Bodily Injury (UM)

Even with mandatory insurance laws, some motorists still take the risk of driving without coverage. To safeguard you from irresponsible drivers, Oregon mandates Uninsured Motorist coverage at the following limits:

• $25,000 per person for bodily injury.

• $50,000 per crash total for bodily injury.

This coverage protects you, family members living in your household, and passengers if you are struck by an uninsured driver or a hit-and-run motorist.

Is the Minimum Enough?

State minimums provide a legal baseline, but modern vehicle repair costs and hospital expenses can easily eclipse $20,000 in property damage or $25,000 in medical bills after a major accident. If the damages exceed your limits, you are personally on the hook for the remainder out of pocket.

Furthermore, mandatory coverage does not include collision (repairs to your own car after a wreck) or comprehensive (theft, falling tree limbs, weather, or animal strikes). If you finance or lease your car, your lender will almost certainly require both.

Before hitting the road, make sure your insurance card—physical or digital—is in the vehicle and ready to show during an inspection or traffic stop. If your budget allows, consider raising your liability caps above the state minimums to keep your financial future secure.

For an affordable car insurance quote contact the Howard Steele Agency today by calling us at (541) 318-8835 or click here to connect with us online.