Oregon requires drivers to carry more than just liability coverage. Every auto policy must include Personal Injury Protection (PIP) and Uninsured Motorist coverage, making the state’s system a hybrid of at-fault and no-fault rules. Below is a full breakdown of the 2025 requirements, enforcement details, and what Oregon drivers should know to stay legal on the road.
Mandatory Minimum Insurance Coverage
To comply with Oregon law, your policy must include at least:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $20,000 per accident
- Personal Injury Protection (PIP): $15,000 per person
- Uninsured Motorist Coverage: $25,000 per person / $50,000 per accident
Unlike many states, Oregon requires PIP and Uninsured Motorist as part of its minimum package.
Understanding Oregon’s PIP Requirement
PIP pays for your medical bills, lost wages, and essential household services after a crash—no matter who was at fault. Oregon requires at least $15,000, but many drivers purchase higher limits to better protect against rising medical costs.
Optional Coverages Worth Considering
To avoid large out-of-pocket expenses, Oregon drivers often add:
- Collision Coverage – Repairs your car after a crash, regardless of fault.
- Comprehensive Coverage – Protects against theft, vandalism, flooding, hail, and fire.
- Underinsured Motorist Coverage – Helps if you’re hit by someone with too little insurance.
- Gap Insurance – Covers loan/lease balances if your vehicle is totaled.
- Roadside Assistance – Helpful for long trips through Oregon’s rural highways.
Penalties for Driving Without Insurance
Uninsured driving carries steep penalties in Oregon, including:
- Fines ranging from $130 to $1,000
- License and registration suspension
- Mandatory SR-22 filing for three years
- Possible vehicle impoundment
How Insurance Is Monitored
Oregon uses an Electronic Insurance Verification System to track active policies. If your insurer reports a lapse, you may receive a DMV letter requiring you to prove coverage. Failure to respond can lead to automatic suspension of your plates and license.
Real-World Example
In 2024, an Oregon driver let their policy lapse for just two weeks. The DMV mailed a notice giving them 10 days to show proof of insurance or face suspension. Because the driver did not respond in time, their registration was suspended, and they had to file an SR-22 for three years, raising their insurance costs by more than $800 annually.
Comparison with Neighboring States
| State | Bodily Injury | Property Damage | PIP Required? | UM/UIM Required? |
|---|---|---|---|---|
| Oregon | 25/50 | 20 | Yes ($15k) | Yes |
| Washington | 25/50 | 10 | No | No |
| Idaho | 25/50 | 15 | No | No |
Quick Checklist for Oregon Drivers
- ✔️ Liability: 25/50/20 minimum
- ✔️ PIP: $15,000 per person
- ✔️ Uninsured Motorist: 25/50 minimum
- ✔️ Proof required at registration
- ✔️ Monitor lapses—DMV suspends quickly
- ✔️ SR-22 required after uninsured violations
Frequently Asked Questions about Oregon Car Insurance
Does Oregon require PIP coverage?
Yes. Every auto policy must include at least $15,000 in Personal Injury Protection (PIP).
How does Oregon verify car insurance?
The state uses an electronic system. Insurers report policy cancellations directly to the DMV.
What happens if I let my policy lapse?
You’ll likely receive a DMV notice. If you don’t respond with proof of insurance, your registration can be suspended, and you may need an SR-22 filing.
Can I register a car without insurance in Oregon?
No. Proof of insurance is required when registering a vehicle.
Is uninsured motorist coverage mandatory?
Yes. Oregon requires at least $25,000 per person and $50,000 per accident in uninsured motorist coverage.