What does Oregon law require regarding auto insurance?
-
A.
Every driver must carry at least the state minimum coverage. Correct
-
B.
Insurance is optional for personal vehicles.
-
C.
Only liability coverage is required; PIP and uninsured motorist coverage are optional.
-
D.
Insurance is required only when financing.
The answer is "Every driver must carry at least the state minimum coverage."
Oregon law requires every driver to insure their vehicles by at least the statutory minimum amounts. The mandatory coverages are bodily injury and property damage liability, personal injury protection (PIP), and uninsured motorist (UM) coverage. Driving uninsured is listed in the manual as one of the reasons you can lose your driving privilege.
The traps in the wrong answers
B. Insurance is optional for personal vehicles.
Oregon mandates insurance for every driver. Misreading: Treats coverage as voluntary when the manual states Oregon law requires every driver to insure their vehicle.
C. Only liability coverage is required; PIP and uninsured motorist coverage are optional.
Oregon's required minimums go beyond liability. The manual lists personal injury protection (PIP) and uninsured motorist (UM) coverage alongside bodily injury and property damage liability as mandatory. Misreading: Reads the Mandatory Insurance list as liability-only, missing that the manual includes PIP and uninsured motorist coverage among the required minimum amounts.
D. Insurance is required only when financing.
The state mandate is independent of how the vehicle is paid for. Misreading: Conflates lender requirements with state law; Oregon's mandate applies regardless of whether the vehicle is financed.
This question tests your knowledge of Insurance & Financial Responsibility in Oregon. Source: Oregon Driver Manual, "Mandatory Insurance," p.93..
Related Oregon questions
- Which of these is NOT one of Oregon's mandatory minimum auto-insurance coverages? →
- What is the minimum bodily-injury liability limit per ONE person in Oregon? →
- What is Oregon's minimum bodily-injury liability when TWO OR MORE people are injured or killed in one collision? →
- What is Oregon's minimum property-damage liability coverage? →
- Under Oregon's mandatory insurance law, Personal Injury Protection (PIP) must cover at least how much per person? →
The Oregon book is on the way
Drop your email and we'll send the free Oregon cheat sheet now, plus a note the moment the book is available.