Why You Need Uninsured and Underinsured Motorist Coverage In Oregon
Any car accident is stressful and traumatizing, whether minor or serious. This can become even worse when you discover the driver who crashed into you does not have insurance.
As you may know, Oregon drivers must have liability insurance. But this does not mean that all drivers obey the law. Those who do may not have enough coverage to compensate you for losses and damages.
This is exactly why having uninsured and underinsured motorist coverage is so important. These minimum benefits can help protect you financially in case of an accident with an uninsured driver.
Oregon’s Car Insurance Laws
If you are a resident who drives a motor vehicle in Oregon, you are legally required to have the following minimum insurance coverage:
- $25,000 per person: bodily injury liability
- $50,000 per accident: bodily injury liability
- $20,000: property damage liability
- $15,000 per person: personal injury protection (PIP)
- $25,000 per person and $50,000 per accident: uninsured motorist coverage
Keep in mind that this coverage is basic. In most cases, this is not enough to cover all the costs and expenses caused by a serious accident. This is especially true when the at-fault driver has no insurance or is underinsured.
Flouting the Law in Oregon
As mentioned, drivers in the state still travel in their cars every day without being insured. According to the Insurance Research Council, around one in eight drivers throughout the U.S. is uninsured. In Oregon, the uninsured motorist statistics stand at around 10%.
This means that whether you drive primarily in Oregon or travel the U.S. regularly, you have a high risk of being in an accident with an uninsured driver.
Moreover, many Oregon drivers are only minimally insured (minimum required liability coverage). So, if one of them crashes into you, causing injury and damage, you will have to pay most of the bills yourself.
What Does Uninsured Motorist Coverage Mean?
When you have uninsured motorist coverage (UM), it can help with medical treatment, loss of income, and other damages. This coverage comes into play when you are involved in an accident with an uninsured driver.
UM coverage can cover medical bills for your passengers as well. You can also get a payout covering pain and suffering damages, if needed. If the accident resulted in a fatality, UM coverage can help pay for funeral expenses.
What Is Underinsured Motorist Coverage?
Underinsured motorist coverage (UIM) protects you when the at-fault driver’s insurance does not cover all your expenses. This means their insurance policy may pay out to the maximum limits but cannot pay for all their medical bills and other costs.
Therefore, UIM is supposed to make up the difference, essentially covering the gap. This coverage includes extra medical expenses, rehabilitation costs, and potentially long-term loss of income.
UM/UIM Coverage Is a Must-Have in 2025
If you have been ignoring the auto insurance laws in Oregon, it is time to reconsider. If you cause an accident and are uninsured, you may have to pay for their damages out of pocket. This could ruin you financially.
Moreover, the situation is reversed if an uninsured driver hits you because they are flouting the laws. You could sue them directly for damages and medical bills.
UM coverage can also provide extra protection in the case of a hit-and-run. If a driver hits your car and speeds off, there is no guarantee the police will find them again. This means you will not have their insurance details to file a claim. If you have UM insurance, it can help cover your most immediate expenses at least.
UM/UIM insurance ensures that you and your family are not left with a massive debt burden because of medical expenses and a loss of income. If you are adequately insured, you get financial stability and peace of mind no matter what happens.
It is also relatively affordable compared to the alternative. For instance, you may have to pay more to add UM/UIM coverage to your insurance policy. However, it does not compare to the thousands of dollars you would have to pay if an uninsured or underinsured driver hits you.
Choosing the Right UM/UIM Coverage
Oregon law states that insurance companies must offer UM/UIM coverage equal to a client’s liability coverage limits. However, you can increase these limits so you are better protected.
Ideally, you want enough coverage to cover hospitalization, rehabilitation, and long-term care. You also want your policy to provide a safety net if you lose your income due to your injuries (inability to work).
Lastly, consider your vehicle’s value and how much it would cost to repair in the worst-case scenario when choosing coverage limits.
Additional Coverage to Consider
You can also get additional coverage to increase your insurance protection. This includes:
- Collision insurance that pays for repairs to your vehicle
- Comprehensive coverage that pays for non-crash-related damages
- Rental car reimbursement, which covers the cost of a rental car
MedPay is not an option in Oregon, as it is one of four states that does not offer this coverage.
Filing a UM/UIM Claim in Oregon
If you are in a situation where you need to file a claim, follow these steps.
- Always report the accident so you can get an official police report.
- While at the accident scene, take photos and videos of the scene, car damage, and the injuries you sustained.
- Get medical treatment, even if you believe your injuries are minor.
- Notify your insurance company about the accident. Also, let your insurer know that you want to file a claim.
- Provide your insurer with all the necessary documents for your claim. This would include things like medical records, repair estimates, etc.
- Consult a lawyer if the insurer denies or delays your claim.
Protect Yourself on Oregon Roads in 2025
It is extremely risky for a driver without insurance in 2025. The more insurance you have, the better, especially if you are in an unexpected situation.
The last thing you want to do is dip into your savings or pay out of your pocket for medical expenses and other damages.
If you choose adequate UM/UIM coverage, you provide yourself with financial security. So, do not wait until it’s too late. Review your insurance policy as soon as possible and get the right coverage.
