Oregon car insurance laws and requirements: What is changing in 2026

Oregon car insurance laws

Oregon law requires drivers to maintain at least 25/50/20 in car insurance coverage. In Oregon, drivers are also required to carry UMBI and PIP. This insurance helps pay for injuries and property damage when you cause an accident. However, if accident expenses exceed the policy limits, you will be responsible for paying the remaining costs yourself.

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, a serious crash can generate medical and repair bills that exceed the state minimum limits. Once the available coverage is exhausted, the at-fault driver will be personally responsible for the unpaid amount.

Oregon car insurance requirements

Drivers in Oregon must carry the coverage required by state law, including liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. and any other mandatory protections. The minimum liability limits are 25/50/20. These limits help pay for injuries, property damage, and other required accident-related expenses covered under Oregon law. In Oregon, drivers are also required to carry UMBI and PIP

Oregon requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

Oregon liability minimums are 25/50/20.

Personal injury protection (PIP). Personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. pays medical costs, such as doctor visits, childcare expenses, and lost wages, for you or your passengers injured in an accident. PIP may be required for drivers who live in at-fault states.

Oregon PIP requirements are $15,000.

The average cost of a minimum coverage policy is $715. However, Country Financial has the lowest minimum car insurance rates, averaging $416.

Country Financial has the lowest minimum car insurance rates, averaging $416.

The table below shows the average rates of the top insurers for minimum coverage in Oregon.

Oregon car insurance cost for minimum coverage limits

Minimum coverage car insurance in Oregon costs an average of $715. However, the amount you pay will depend on your insurer, age, location, driving history, and other rating factors. Country Financial has the cheapest average minimum coverage rate at $416 annually.

On average, state minimum car insurance costs $715. Car insurance rates for minimum coverage vary by company and driver. The table below shows average annual rates for the old minimum liability limits in Oregon. We will soon revise the rates to align with the updated limits.

The cheapest company for minimum coverage in Oregon is Country Financial at an average rate of $416 annually.

Are the minimum coverage requirements changing in 2026 in Oregon?

The minimum car insurance requirements in Oregon will remain the same in 2026. Drivers who already meet the state's mandatory coverage limits do not need to change their policies. If the law changes in the future, insurers will notify customers about the new requirements and any effect on premiums.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated coverage values and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

What does minimum car insurance cover in Oregon?

Minimum car insurance in Oregon pays for specific accident expenses up to the limits required by law. Liability insurance covers injuries and property damage you cause to other people. These limits pay for injuries, property damage, and other losses covered under Oregon's minimum insurance requirements.

Oregon requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

Oregon drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

Oregon is a no-fault state, meaning your insurer pays for your injuries and damages regardless of who caused the accident. The law requires you to carry personal injury protection (PIP) to pay medical costs, such as doctor visits and prescriptions.

How much car insurance is enough in Oregon?

The amount of car insurance you need in Oregon depends on your assets, income, savings, and vehicle. Higher liability limits can protect you from lawsuits and major out-of-pocket expenses. Drivers with financed or leased vehicles will also need collision and comprehensive coverageComprehensive coverage helps pay for damage to your car caused by events other than a collision, such as theft, fire, vandalism, or natural disasters. It is subject to a deductible..

Drivers with substantial savings, property, or other assets should avoid choosing limits that are too low. If you cause an accident that exceeds your policy limits, the injured party may pursue your income or assets for the remaining costs.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease, you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

Oregon penalties for driving without car insurance

Driving without required car insurance in Oregon can result in fines, a suspended driver's license, vehicle registration penalties and higher future insurance rates. Penalties become more severe after repeated violations. You will also have to pay accident-related expenses out of pocket if you cause a crash while uninsured.

Failing to carry Oregon car insurance has penalties, including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

Oregon minimum coverage cost by age group

Minimum coverage rates in Oregon vary significantly by age because insurers use driving experience and claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. risk when setting premiums. Younger drivers generally pay the highest rates, while premiums often decrease as drivers gain experience. Country Financial is the cheapest for teens, and Country Financial is the cheapest for adults.

The table below breaks down the cost of car insurance for various age groups. Country Financial has the best rates for teens, with minimum coverage averaging $815. Country Financial offers the cheapest coverage for adults at $434.

Additionally, females and males pay different rates. The average rate for a 40-year-old female is $734, and the average rate for a 40-year-old male is $697, a difference of $37.

Oregon minimum coverage cost by city

Minimum coverage is cheapest in Bend, where drivers pay an average of $632. Gresham has the highest average minimum coverage rate in Oregon at $1,099. Differences in traffic, accident claims, theft, and local repair costs can cause premiums to vary from one city to another.

The table below shows average minimum coverage rates for cities in Oregon.

Optional car insurance coverage in Oregon

Optional car insurance protects your vehicle and finances beyond the minimum coverage required in Oregon. Collision and comprehensive insurance pay for damage to your own car, while rental reimbursement, roadside assistance and gap insurance address specific expenses that a state minimum liability policy does not cover.

Drivers may choose optional coverages such as:

• Collision coverage. Collision coverage pays for damage to your vehicle if you cause an accident.
• Comprehensive coverage. This coverage pays for damage to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
• Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
• Roadside assistance coverage. If you run out of gas, need a tire changed, or have a dead battery, roadside assistance will send someone to help.
• Gap coverage. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Why do limits change?

State lawmakers increase minimum car insurance limits when existing requirements no longer reflect current accident expenses. Rising medical bills, repair costs and vehicle values can make current limits insufficient. Raising the required coverage gives accident victims access to more insurance money and reduces the amount drivers pay.

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