Oregon’s Financial Responsibility Law for Automotive Insurance

Oregon law requires that automobile policies provide a minimum level of liability coverage.  There are two main reasons for this requirement.  First, it ensures that motor vehicle drivers can respond to damages in liability.  Second, it ensures that all motor vehicle accident victims are compensated for injuries that they sustain.

Every automobile insurance policy issued for delivery in Oregon must provide coverage for at least:

  • $25,000 for bodily injury to or the death of one person;
  • $50,000 for bodily injury to or the death of two or more persons; and
  • $10,000 for property damage to the property of others.

If an at-fault driver has minimum policy limits, that means that no one person can collect more than $25,000 for bodily injury or death from the at-fault driver’s insurance carrier.  Similarly, the insurance carrier will pay no more than $50,000 for each accident regardless of how many people were injured.

Of course, an insurance policy may provide higher liability limits or a broader scope of coverage than is mandated by statue.  Indeed, the minimum level of liability coverage only provides bare bones protection and Oregon drivers should seriously consider raising their policy limits.

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