Oregon auto law combines a fault-based liability system with mandatory personal injury protection (PIP) and uninsured motorist coverage on every private passenger policy. State questions ask for the 25/50/20 minimums, PIP benefit amounts, UM/UIM rules, cancellation and nonrenewal deadlines, credit-scoring limits and total-loss rules. The policy parts themselves (Parts A-F, definitions, exclusions) are in the national Personal Auto Policy guide.

Fault, negligence and PIP

• Oregon is not a no-fault state. The at-fault driver is liable. The injured person keeps the right to sue, and PIP is still paid (ORS 742.520(5)).
• Comparative negligence (ORS 31.600):
  • A claimant recovers, reduced by their own share of fault, as long as that fault is not greater than the combined fault of the defendants.
  • Example: a driver 40% at fault with $100,000 of damages recovers $60,000.

Financial responsibility

Minimum limits (ORS 806.070)

What the policy must include

• A policy that meets financial responsibility must include liability, PIP and UM (806.060, 806.070, 742.520, 742.502).
• The policy must cover permissive drivers as well as the named insured (806.080).
• Financial responsibility can also be met by self-insurance (806.060).

Proof of insurance (806.011)

• Proof of insurance must be carried in each vehicle.
• Showing proof on a phone doesn't consent to a search of the phone's other contents.

Future responsibility filings

• Required after certain convictions, using a certificate of insurance, commonly called the SR-22 (806.270).
• A DUII conviction requires 50/100/10 coverage, kept on file for 3 years (806.075).
• A driver in an accident while uninsured must make a filing within 30 days (806.200).

Reporting to DOT

• An insurer that cancels or nonrenews a policy used for financial responsibility reports it to the Department of Transportation within 30 days (742.580).

Personal injury protection (ORS 742.520-742.534)

PIP is required on every private passenger policy.

Who is covered: the insured, resident relatives, passengers, and pedestrians struck by the insured vehicle.

Other PIP rules

• Deductible: an insurer may offer a deductible of up to $250 for the insured and household members.
• Other vehicles: PIP is excess when the named insured is hurt in a vehicle not insured under the policy (742.526).
• Exclusions: injuries in an organized speed contest may be excluded (742.530).
• Disputes with claimants: arbitration only if both sides agree when the dispute arises.
• Disputes between insurers over PIP reimbursement go to arbitration (742.534).
• No managed care: insurers may not contract for managed care services for PIP claimants (742.520(7)).

Uninsured and underinsured motorist (ORS 742.502-742.510)

Bodily injury UM

• Every auto bodily injury liability policy must include UM. It can't be rejected entirely (742.502(1)).
• UM limits equal the BI liability limits unless the named insured elects lower limits in writing, never below 25/50.
• The signed election must show the price of UM at limits equal to BI.
• Underinsured motorist coverage is included within the required UM coverage.
• A hit-and-run vehicle must cause injury through physical contact with the insured or the insured's car (742.504).

UM property damage (742.510)

• Insurers must have UM property damage coverage for sale, at least equal to the property damage minimum.
• It doesn't pay the first $300 of damage from a hit-and-run or phantom vehicle, or the first $200 in other cases.
• Loss of use isn't covered.

Cancellation and nonrenewal (ORS 742.560-742.572)

Midterm cancellation

• After a policy has been in force 60 days (or on a renewal), the insurer may cancel only for:
  • Nonpayment.
  • Fraud or material misrepresentation.
  • A policy violation.
  • Suspension or revocation of a household driver's license. A suspension for a nondriving offense doesn't count.
• Notice: at least 10 days for nonpayment, 30 days for other reasons, with the reason stated.

Nonrenewal

• At least 30 days' notice before expiration, with reasons.
• Offering a replacement policy from an affiliate on new terms takes 45 days' notice to the insured and producer.
• Cancellation and nonrenewal notices must tell the insured about possible coverage through an insurance pool or facility.

Scope

• These protections don't apply to a policy insuring more than four autos.
• A policy written for less than 6 months is treated as a 6-month policy.

Premium increases

• On written request, the insurer explains a renewal increase by listing up to four factors that contributed most (742.075).

Credit and underwriting (ORS 746.661)

• After 60 days, a personal auto or homeowners policy can't be canceled or nonrenewed because of credit history or insurance score.
• Credit can be used to decline new business only together with other substantive factors.
• Insurance-related inquiries can't be used in rating.
• A consumer may ask for a re-rating once per insurer per line each year.

Physical damage claims

Repairs and parts

• An insurer may not require repairs at a particular shop (OAR 836-080-0240(12); ORS 746.280).
• Aftermarket crash parts can be required without the owner's consent only if certified as at least equal to the original (746.287).
• An estimate using non-OEM parts must warn that OEM warranties may be affected (746.292).
• On request, a warranty for non-OEM parts must be made available (746.289).

Total losses

• The insurer gives the owner the valuation reports it relied on (742.554).
• A cash settlement includes taxes, license and transfer fees, less the deductible (OAR 836-080-0240(3)).
• An insured who can't buy a comparable car for the settlement may reopen the claim within 35 days of receiving the draft.
• If the value is disputed, the undisputed amount is paid once the owner agrees to transfer title and lets the car be held at least 14 days for inspection.
• An uninsured damaged vehicle is a "totaled vehicle" when repairs cost at least 80% of retail value (ORS 801.527). Titles obtained by insurers go to DOT within 30 days (819.014).

Subrogation

• On request, the insurer includes the insured's deductible in its subrogation demand.

Common exam traps

• 25/50/20. Oregon's property damage minimum is $20,000, not $25,000.
• PIP plus fault. PIP is mandatory, but Oregon is not no-fault and lawsuits aren't restricted.
• PIP numbers: $15,000 medical within 2 years; 70% income up to $3,000 a month for 52 weeks after a 14-day disability; $5,000 funeral.
• UM can't be rejected. It can only be reduced, in writing, to no less than 25/50. UIM is part of UM.
• Cancellation notice: 10 days for nonpayment, 30 otherwise. Nonrenewal: 30 days.
• Comparative negligence: the bar is fault greater than the combined fault of all defendants.