Reader’s Question:

To achieve low cost car insurance, I am thinking of taking out my uninsured motorist insurance. Will this be allowed in Oregon?

Adriana

Portland, OR

Oregon is one of the more austere states when it comes to car insurance. Each motorist has to have adequate car insurance or may face a number of penalties for non-compliance. Sufficiently insured in this state means having property damage liability of $10,000 to pay for any ruined public property or the other party’s car at any one accident. Additionally, bodily injury coverage of $25,000 for one person, or up to a combined total of $50,000 for everyone in the vehicle will be shouldered by the insurer.

Also, each motorist has to have Personal Injury Protection (PIP) of $15,000 to pay for the insured’s hospital and rehabilitation bills after an accident. PIP also provides the insured with monetary assistance for not being able to attend employment. It may also provide for funeral expenses it necessary.

On top of all this, the uninsured motorist insurance has to be present in a driver’s car insurance policy. This will kick in if the insured sustained bodily injuries following a car crash with a driver that has no car insurance of any kind. This pays from $25,000 for one person or up to $50,000 for all individuals involved.

Needless to say, you will be considered insufficiently insured if you take out the uninsured motorist insurance from your policy. If you are found by the DMV to have no adequate coverage, you may face possible restrictions to your driving, sequestered vehicle and an exhausted bank account from paying fines, administrative fees, towing and vehicle storage fees. Removing your uninsured motorist coverage to achieve low cost car insurance is simply not allowed in Oregon.

Tags: auto insurance coverage, car insurance cost, DMV, liability insurance