Driver's License Test Prep
Oregon Practice Insurance & Financial Responsibility

What does Oregon law require every driver to carry for auto insurance?

  1. A.
    Only bodily injury and property damage liability; PIP and uninsured motorist coverage are optional add-ons.
  2. B.
    Bodily injury and property damage liability, personal injury protection, and uninsured motorist coverage. Correct
  3. C.
    Bodily injury and property damage liability plus personal injury protection; uninsured motorist coverage may be declined in writing.
  4. D.
    Full coverage insurance, meaning liability, comprehensive, and collision at the required limits.
The Why

The answer is "Bodily injury and property damage liability, personal injury protection, and uninsured motorist coverage."

Oregon law requires every driver to insure their vehicles by at least the statutory minimums, and the manual on p.93 names three coverages together: bodily injury and property damage liability, personal injury protection (PIP), and uninsured motorist (UM) coverage. Drivers who bought a 'full coverage' policy from a private insurer read that industry bundle as Oregon's legal requirement and pick D.

Why the others miss

The traps in the wrong answers

A. Only bodily injury and property damage liability; PIP and uninsured motorist coverage are optional add-ons.

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. This answer applies the liability-only minimum a driver may have moved from, where PIP and UM ride along as optional add-ons rather than statutory floors.

C. Bodily injury and property damage liability plus personal injury protection; uninsured motorist coverage may be declined in writing.

Oregon lists uninsured motorist coverage among the required minimum coverages at $25,000 per person and $50,000 per collision for bodily injury, so a written-decline answer does not match Oregon's stated requirement. This answer imports the written UM rejection a driver may have signed elsewhere, where uninsured motorist coverage can be declined on a state-provided form.

D. Full coverage insurance, meaning liability, comprehensive, and collision at the required limits.

Comprehensive and collision protect your own vehicle and are sold as options; Oregon's mandatory list on p.93 is liability, PIP, and uninsured motorist coverage. This answer reads the insurance-industry marketing term 'full coverage' as Oregon's legal minimum, when comprehensive and collision are optional products sold separately.

The Rule

This question tests your knowledge of Insurance & Financial Responsibility in Oregon. Source: Oregon Driver Manual, "Mandatory Insurance," p.93..

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