It is important to realize that changes may occur in this area of law. This information is not intended to be legal advice regarding your particular problem, and it is not intended to replace the work of an attorney.
Drivers must be insured if operating a motor vehicle in Oregon. If
you own a vehicle, you must certify that you have insurance before
you can renew your registration.
If you drive a vehicle that is registered in Oregon without you or
the owner having insurance, then you have committed the offense of
driving uninsured, which is a violation punishable by a fine up to
$427. If you are convicted, your license will be suspended unless you
buy a special type of insurance commonly called SR-22. The insurance
companies charge more for SR-22 insurance than regular insurance. You
will be required to file proof of SR-22 insurance with the Department
of Motor Vehicles for a period of three years. Failure to provide proof
or failure to pay your premiums will result in the suspension of your
driver’s license.
Oregon law requires that you carry proof of insurance coverage with
you while you are driving. Most insurance companies will send you a
card you can carry with you or in the vehicle. Always check to make
sure you know where it is so you can find it quickly. If you borrow
someone else’s car, make sure you know you are covered by their
insurance or your own and have proof of coverage. The law requires
that you show proof of insurance to the other driver if you have an
accident and to the police if you are pulled over. If you can’t
produce your card when the officer asks for it, you can be cited for
the violation of “failure to carry proof,” which is a violation
punishable by a fine up to $427. You should also make sure you have
the correct card and that it is not expired.
If you are involved in an accident and neither you nor the owner of
the vehicle is insured, the investigating officer will probably give
you a citation for driving uninsured. Even if you are not cited, you
will get in trouble with the DMV. The DMV will suspend your license
for one year, and you will be required to buy SR-22 insurance to get
your license back. You will continue to need SR-22 insurance for the
next 3 years. If you cause an accident and you are uninsured, then
you can be sued for money damages by any injured person. If they receive
a judgment against you for damages, and you do not pay within 60 days,
your license can be suspended until the judgment is paid.
Personal Injury Protection
If you are injured in an accident that is the fault of an uninsured
motorist, then you may have the following insurance protection. You
will be protected by Oregon’s no-fault insurance, known as personal
injury protection or PIP if:
- you are insured; or
- the private passenger motor vehicle you were in is insured; or
- you are a pedestrian struck by an insured private passenger motor vehicle.
No matter who was at fault, the insurance will pay up to $15,000 for
reasonable medical, hospital, dental, surgical, ambulance and prosthetic
services incurred within one year after the accident. If you are disabled
and cannot work for at least 14 days, you can receive 70% of the loss
of income from work up to a maximum of $1,250 per month for a period
of 52 weeks. If you are not employed but are disabled for at least
14 days, you can receive $30 per day for a maximum of 52 weeks for
essential services you would have performed during the period of disability
until you are reasonably able to perform those essential services.
Such essential services might include: house cleaning, childcare and
cooking. If you are a parent of a minor child and need hospitalization
for a minimum of 24 hours, you can receive $25 per day for childcare
until you are able to return to work or, if you are not employed, until
you can return to performing essential services. The maximum amount
paid for childcare is $750. If your insurance policy and a different
policy insuring the vehicle both apply, you may be entitled to benefits
under both policies.
If a person is killed in an accident, the PIP benefits will pay $5,000
for reasonable and necessary funeral expenses. What many people do
not understand, is that your own insurance may provide additional coverage,
over and above your medical bills, in the event you have been injured
through the negligence or fault of either an insured or an uninsured
driver.
Uninsured and Underinsured Motorist Coverage
Every insurance policy issued in Oregon requires that the insurance
company provide Uninsured Motorist (or “UM”) coverage.
If you are injured in an accident through the fault of an uninsured
driver, whether you were driving or were a pedestrian, your own insurance
will provide coverage up to the limits of your UM policy. It provides
substitute coverage when the driver at fault did not have any insurance.
Your own insurance will enable you to recover noneconomic and economic
damages in any amounts, up to your UM policy limits, that you would
have been entitled to recover from the uninsured driver. Economic damages
include medical expenses and wage loss. Noneconomic damages include
pain and suffering, interference with normal activities, and permanent
injury.
You may obtain the benefit of your UM coverage also in a situation
where there is a hit-and-run accident, and you are unable to identify
the other vehicle. This also applies when a “phantom vehicle” causes
an accident, even though no actual contact was made between the vehicles.
In the case of a “hit-and-run” or “phantom vehicle,” the
injured party must report the accident to the police or Motor Vehicles
Division within 72 hours and notify his or her insurance company within
30 days of the fact that a claim will be made for damages. An independent
witness must corroborate the injured party’s testimony about
the “phantom vehicle.”
You may have underinsured motorist coverage, or UIM coverage, if your
UM limits are greater than the minimum limits required by law ($25,000
per person, $50,000 per accident). Under UIM coverage, you may be entitled
to the difference between the limits on your policy and the limits
on the policy for an insured driver who caused your injuries in the
accident. For example, if a negligent driver injures you and has the
minimum requirement of $25,000 worth of coverage and your own policy
has UM limits of $100,000, then your policy would provide you with
UIM insurance. The amount of UIM benefits available to you is determined
by subtracting the amount recovered by or on your behalf under other
liability insurance policies from the UM limits. The liability insurance
must be exhausted or offered in settlement before UIM coverage applies.
The law requires that you sign a statement if you want your UM limits
to be less than the liability limits of your policy. In other words,
if the liability limits on your insurance policy are $100,000, your
UM limits must also be $100,000 unless you have elected in writing,
lower limits. Having lower limits may save you on premiums, but you
are taking a risk there will not be enough insurance coverage to pay
for everything.
You can also purchase uninsured motorist coverage to pay for damages
to your vehicle or property (in addition to your injuries). This coverage
is not required by law, but must be offered to you by your insurance
company as an option.
Resolving Disputes with Your Insurer
If you have been injured by an uninsured or underinsured driver, and
you and your insurance company disagree about the amount you are entitled
to recover from the uninsured driver, you and the insurance company
may agree to resolve the dispute between you by arbitration. (Arbitration
is a procedure to resolve disputes without going through the litigation
process or a formal trial.) Your own insurance policy may have provisions
indicating how the arbitrators are to be selected.
The arbitration hearing is generally held in the offices of the arbitrator
and allows both sides to present evidence on the issues in question.
Rules of evidence are relaxed somewhat, and the proceedings are not
as formal as a trial at the courthouse. The arbitrator(s) will decide
all of the issues involved, including whether the damages you sustained
were caused by the negligence of the uninsured driver and the amount
of damages you are entitled. If you and the insurance company have
agreed to use arbitration, the decision of the arbitrator(s) is final
and binding upon both sides. You also have the right to a jury trial
if you do not want to arbitrate your dispute, but this may increase
the cost and time it takes to resolve your case.
Just as in any other matter, it’s wise to talk to a lawyer before
you make any decisions or sign anything. Remember that the insurance
companies and the other driver have different interests than you; your
lawyer will have only your best interest in mind. You might also obtain
advice on how to represent yourself while resolving your case.
Legal editor: The Hon. Steve Todd, March 2009