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Is Oregon a no-fault car insurance state?

Here's what you need to know...
  • No-fault systems require injured parties in auto accidents to seek financial recovery from their own insurer
  • You must carry Personal Injury Protection coverage and pay the premiums if you live in a no-fault state like Oregon
  • All states without no-fault laws operate under a tort system where at-fault drivers are liable to pay for damages
  • Oregon is not a true no-fault state, but the legislation does require insurance policies to possess a no-fault provision

It’s never fun to deal with the mess after you’ve had a car accident. You have to deal with the other driver at the scene, shop around to find the best auto body shop, and file a claim where you’ll have to ask loads of questions that are geared towards helping the adjuster.

No matter how straightforward your version of events might seem, there will always be another party who perceives the cause of the accident much differently.

Auto insurance claims are always thoroughly investigated. In fact, some investigations are so thorough that your medical bills and auto repair bills will go unpaid for months on end until the claim is closed.

Some states started implementing the no-fault system to combat the problems that arise when claims are delayed. If you live in Oregon, let’s discuss what you need to know about no-fault insurance laws.

If you are in need of better auto insurance, compare at least three to four policies today to find the best rates for you! Enter your ZIP code above!

What is no-fault car insurance?

No-fault car insurance is a system that requires insurance programs to offer their policyholders first-party benefits to recover financial losses for injury from their own insurers.

Offering the first party Personal Injury Protection benefits under the claimant’s own policy makes it easier to settle claims.

In states with a pure no-fault system in place, the right to sue is restricted when victims collect under their own policy. Currently, there are no states with a purely no-fault system in place.

Each of the 12 no-fault states in the U.S. offers victims the right to sue after certain thresholds are met. Technically these are called limited tort options.

What is a tort state?

A majority of states operate under a tort auto insurance system. If you live in a tort state, fault influences who is liable to pay for damages and which insurer settles the claim.

In most states with tort systems, the insurer of the driver who is allocated 51 percent or more of the fault will settle the claim by paying the third-party under Bodily Injury and Property Damage coverage options.

Is Oregon a no-fault state?

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There are 38 tort states and 12 no-fault states in America. Oregon is classified as a tort state rather than a no-fault state.

Even though it’s a fault state, it doesn’t mean that you don’t have to carry no-fault coverage. Like Bodily Injury and Property Damage, no-fault coverage is required.

The state’s insurance requirements are unique in that you have to carry both tort coverage options and no-fault coverage options.

Instead of being classified as a no-fault state, Oregon’s a state with an add-on no-fault provision.

You must carry the first-party benefits that help you recover, but you aren’t limited to your right to sue as the victim.

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– Mandatory Coverage Requirements

The ORS 806.010 law says that auto insurance is mandatory. You have to maintain a minimum amount of coverage when your car is registered in Oregon or you’re violating the law.

Out of all of the states, Oregon has very broad mandatory coverage requirements. You must carry third-party liability, personal injury protection, and uninsured motorist coverage at a minimum.

– Pros and Cons of Oregon’s Add-on Provisions

There are advantages and disadvantages to both types of insurance systems. One of the biggest disadvantages of a fault-based system is that claims are often delayed.

Since you have your own Personal Injury Protection and Uninsured Motorist coverage to lean on, you don’t have to worry about seeking immediate treatment.

While there are advantages, the added coverage comes at a cost. In most states, you have to carry only liability coverage or only no-fault coverage.

Since both coverage plans are required, plus Uninsured Motorist Protection, the average auto insurance expenditure is high throughout the state compared to income per capita. Consumers pay an average of $818 per year for solely their insurance in Oregon.

Auto Insurance in Oregon

All insurers in Oregon will sell policies that include all of the mandatory coverage options. You also have the choice to raise your limits so that you have even more protection for more severe losses.

Here are the mandatory coverages you must carry at all times:

  • Bodily Injury Liability — $25,000 per person, up to $50,000 per accident for injury or death to third parties
  • Property Damage Liability — $20,000 per accident for damaging property owned by others
  • Personal Injury Protection — $15,000 per person for immediate medical treatment, doctor bills, loss of income, and related expenses
  • Uninsured Motorist Protection — $25,000 per person, up to $50,000 per accident for your injury or death if you’re injured in a loss with an uninsured driver

– Additional Coverage Options

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Having financial protection can make all the difference when you need help after a loss. There’s nothing worse than wishing you would have elected to carry higher limits after the fact.

Here are some of the optional forms of coverage you may want to add to your plan:

  • Comprehensive — Pays for damage to your car for claims arising from a fire, theft, or act of vandalism
  • Collision — Pays for repair to your car if it’s damaged in a collision
  • GAP — Pays your auto loan off if you owe more than your car is worth when it’s totaled
  • Rental Car — Pays for a temporary substitute when your car is in the shop after a covered loss

– Penalties for Driving Without Insurance

Driving without motor vehicle insurance could result in fines, suspensions, and more.

The presumptive fine for no insurance is $260, but the fine could be lowered when you go to court.

If you are convicted of the charge in court, you have to file an SR-22 for three years. Failing to file this proof will lead to a license suspension. Your license is automatically suspended for one year if you crash while you’re uninsured.

Finding the Best Car Insurance in Oregon

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If you’re moving to Oregon or you aren’t happy with your current premiums, it’s time to find the best car insurance plan. There are so many different licensed auto insurers in Oregon that offer quality products, but not all products are affordable.

Having so many options is why it’s best to compare at least four rates and then compare insurers.

– Comparing Financially Stable Insurers

The financial health of an insurer is essential. It’s probably the most important factor that you need to look at when you’re making a choice.

If insurers don’t collect enough money, invest money wisely, or budget carefully for marketing, they could go bankrupt. You don’t want to pay an insurer that can’t afford to pay you.

These companies rate the financial health of companies in the finance industry:

  • AM Best
  • Fitch Ratings
  • Moody’s Investor Services
  • Standard & Poor’s Insurance Ratings Services

– Asking For Discounts

Once you have found a financially stable carrier with great consumer reviews, the last step is to ask the insurer about the discounts offered.

Some carriers offer a larger menu of savings than others. The more discounts that can be stacked on your policy, the better.

Here are some popular discounts offered:

  • Good Driver
  • Good Student
  • Loyalty
  • Multi-car
  • Multi-line
  • Affinity
  • Occupation
  • Anti-theft
  • Low-mileage
  • Pay-in-full

One way to price how much discounts can save you off of your premiums is to get online rate quotes. If you want to compare premiums for various limits of coverage in Oregon, use a rate quote tool and play with the numbers.

Make the right choice only after you know the requirements.

Try our FREE online quote tool and start comparison shopping today! Enter your ZIP code below!

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