Oregon has a variety of attractions unique to America’s 33rd state. For instance, Oregon is home to Crater Lake, the deepest lake in the United States, and to the Columbia River gorge, considered to be one of the top places in the globe for windsurfing. Portland, Salem, and Eugene are the three most populated cities in Oregon, with Portland’s population counted at over 654,000. Oregon is also home to the world’s largest mushroom, spanning over 2 miles long.

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oregon car insurance requirements
Get to know Oregon car insurance requirements so you can plan an epic and budget-friendly road trip while avoiding unnecessary fees.

In short, there are many destinations to visit in Oregon. With that in mind, finding the best car insurance for you and your needs can save you money. But you should also know what is required for Oregon drivers based on statistics and several factors. According to recent data, Oregon had over 50,000 crashes in 2018, with 41,073 injured and 502 fatalities. Of those crashes, 5,556 involved 15-20-year-old drivers.

Oregon Car Insurance Requirements

According to the Oregon Auto insurance law, it is illegal to drive without liability coverage. Therefore one must provide an auto insurance policy number every time a new vehicle is registered. The minimum amount of auto insurance a driver must have before driving in any part of the state of Oregon is $25,000 per person for a bodily injury and property damage liability, $15,000 per person for personal injury protection (PIP), and $25,000 per person for an uninsured motorist (UMBI).

Knowing this, as well as other Oregon car insurance requirements, can help you narrow down your insurance options. While other factors affect insurance rates, you can better rule out which coverage and rates work for you. Let’s dive into what a driver in Oregon needs to know.

Auto Insurance Companies in Oregon

There are many insurance companies with different insurance packages for drivers that ply the 122,395 miles of road in the state. Top among them are:

Grange, Oregon Mutual, Country, Travelers, USAA, State Farm, Amica, GEICO, Allied, Mutual Enumclaw, Cal Casualty, Progressive, Metlife, 21st  Century, American Family, Encompass, Allstate, Farmers, Safeco, Liberty Mutual, Nationwide, Sentry, Dairyland.

Factors That Affect Insurance Rates

There are a lot of factors that can influence policy prices when shopping for car insurance in Oregon. It is noteworthy that some of the policies of insurance companies are dependent on the age of drivers, the driving record of such drivers, the location, type, and model of cars as well as credit scores of drivers.

The sole reason why the age of drivers is a determinant factor is that young and teenage drivers have a high propensity to crash. Hence they’re likely to pay more. If a driver has an adverse driving history such as crashes and traffic laws violation, such a driver is going to pay more.

The location of the driver also plays a vital role in securing car insurance. For instance, if a driver lives in either of the fastest growing cities of the United States, such as Portland or Gresham, they will surely pay more than drivers in other cities.

Also, insurance on new and luxurious cars is not the same as that on others. Coverage on new cars cost more because of the vast amount of money required to maintain, repair, and purchase parts of new cars.

Finding the Cheapest Auto Insurance in Oregon

The premium payable for insurance coverage is as varied as the number of insurance companies in Oregon. From the analysis of the data pooled from 23 major insurance companies that operate in the Beaver State, the result shows that Grange Auto Insurance offers the lowest annual car insurance premium at $701, followed by Oregon Mutual Insurance Company. DairyLand insurance charges the highest at $4,164 per year. The summary of the record is below:

2Oregon Mutual$836
6State Farm$1,050
10Mutual Enumclaw$1,200
11Cal Casualty$1,206
1421st Century$1,337
15American Family$1,445
20Liberty Mutual$2,483


As said earlier, there are diverse factors in place responsible for reducing insurance costs for drivers in the United States. Some companies also offer discounts to drivers that meet up with their terms and conditions. However, Oregonians can save money on insurance premiums if they habitually drive safely and avoid speeding tickets.

For instance, a driver can save up to 20% if he does not have a traffic ticket. Another 36% can be saved if a driver has never had an accident before, while good credit saves more then 49%.

Car insurance companies offer discounts to help reduce the premium rate. However, parameters and requirements for discounts differ according to the terms and conditions of the individual companies. However, significant requirements are summarized below:

  • If you enroll and you’re able to complete the driver training lessons successfully (most drivers under 21 years of age can qualify for this)
  • Install anti-theft devices on the vehicle
  • Maintain an accident-free driving record for three or more years
  • Own a car installed with safety devices like airbags
  • Own a vehicle powered with an alternative source of fuel (e.g., your car is an electric vehicle or hybrid)
  • Students under the age of 25 who make the Dean’s list
  • People who insure more than one car with the same company
  • You can pay off the entire premium at once

Rates According to Location

Chief among factors that affect insurance cost is location. In Oregon, auto insurance premium has a state average of $745.09, which is a bit above the national average of $657.66 (about 13% more). However, rates vary from one part of the state to another. While Redmond holds the title of the city with the cheapest insurance cost, Gresham is the most expensive.

The table below shows the average yearly auto insurance rate for 25 of the most populated cities in Oregon.

5Lake Oswego$1,560
8Forest Grove$1,518
14Oregon city$1,416
16West Linn$1,335
21Grant Pass$1,261

How Much Can You Save on Car Insurance in Oregon?

Who doesn’t like to save money? With insurance rates always on the rise, one must look for ways to reduce the premium one pays to get insurance coverage. There are many ways one can save some dollars by exploring the insurance company’s bonus and discount packages. Some of them are detailed below.


If you are a driver with exceptional credit within the range 800-850, car insurance premiums are usually about $1,942 less annually. However, the case is not the same for drivers with poor credit (300-579). If your credit, however, rises from poor (300-579) to fair (about 580-669), there are significant benefits tethered to that. The benefits include a drastic reduction in insurance premiums by a total of $560 yearly.

In Gresham, drivers who have a DUI pay nearly twice the average for the city, about $1,742. Auto drivers that drive recklessly in Gresham have their rates typically higher than other people’s, around the figure $3,151. This figure is 81% higher than the average in the city.

If a driver in Gresham has been involved in a collision and such driver was found to be the cause of it, such driver would pay $1,023 more than other road users. Teenage drivers are usually the ones who pay more for car insurance in Gresham, at about $7,525 every year.


Car insurance rates in Portland differ, depending on the exact location of a driver in the city. Many people believe that credit score and driving history are the leading factors that affect insurance rates. But this is not the case. The foremost of the factors is the geographic location of residence of the driver in the city.

Where the driver lives plays a crucial role in determining their insurance rate because of the increase of theft and criminal acts, which vary by zip code. Hence, if you live in an environment that has more records of theft and criminal offenses, car insurance companies may charge much more to insure you.

In addition to this, if you have poor credit (300-579), insurance premiums may likely be triple those with exceptional credit (800-850). However, if you can upgrade from poor credit to excellent credit, you are liable to save up to $1,403 every year.

Young and teenage drivers pay more for car insurance, with an average rate of $6,629. In Portland, drivers in their twenties can save up to 65%. However, a driver who is in his sixties pays more for insurance. In general, if a driver moves from an age group, say from a teenager to an adult, he pays less. Drivers in the age bracket 50 years and above are usually the smallest of all the age groups as there are few people in the category. These drivers pay about $1,527 every year.

If a driver has a DUI in Portland, he pays $767 more than other people in the city to insure their cars. By driving history, reckless drivers have had to pay average rates of $2,638 more than other drivers in Portland. Before you can subscribe to an insurance scheme, the company must access your accident history and how much damage was caused when the incident occurred.


The insurance premiums in Hillsboro are 10% higher than that of Oregon. Based on marital status and gender, male drivers in the city of Hillsboro pay 4% less than women for premiums. For divorced and widowed, the insurance rate is quite more expensive than that of singles. If you are single, you pay approximately $50 more to insure your vehicle yearly.

Insurance in Hillsboro costs about twice the amount of people from other regions of the country pay to insure their vehicles. Recklessness will increase the insurance rate to about $2,714 more. If a driver is found to have had an accident before, such a driver will pay about $893 more yearly.

In Hillsboro, drivers with poor credit (300-579) usually pay 2.3 times more (on average) than those with exceptional credit (800-850). However, if you are migrating from fair (580-669) to good (670-739), a driver can save up to 20% yearly, which is the most significant percentage drop in premiums.

Age-wise, teenage drivers usually pay more for premiums, compared to other age groups. Teenage drivers in Hillsboro pay $6,557 yearly to insure their cars. Since it’s a universal goal for everybody to save money, drivers in their 50s usually enjoy the offer because they pay the least amount of money for insurance. They pay, on average, $1,350 yearly to get their vehicles insured. However, those in their 60s only have to pay a few bucks more, $1,379 per year. In Hillsboro, drivers who hit their 20s pay about 69% less to insure their vehicles.


Premiums in Salem cost an average of $1,475, which is about 7% costlier than the state. In Salem, premiums cost less for men than women. On average, men in the city pay $1,475 yearly for premiums, while women pay $1,533, which shows clearly that men pay $58 less than women in Salem. If, however, you are single, you pay 3% more than married men and women. Divorced and widowed drivers pay more rates than singles pay.

If a driver is found to have violated specific traffic rules or has been involved in an accident, insurance rates may cost a bit higher. Drivers who are found with at-fault accidents are required to pay $855 more than others every year. A history of reckless driving could also exacerbate the situation. Reckless driving costs about $2,581 more, which equals a 75% increase compared to the city average.

People with poor credit (300-579) pay nearly triple as drivers who have exceptional credit (800-850). If a driver raises his credit tier from fair (580-669) to good (670-739), such a driver can save up to $465 per year on premiums.

Just like in most other cities of the United States, drivers in their 50s in Salem save more money on insurance. People in this age bracket usually pay the smallest of rates for all age groups, paying about $1,310 per year. However, drivers in their 60s pay $27 more than those in their 50s. Teenage drivers in Salem have the highest annual rates ($6,305 on average). There is a noticeable reduction in premiums for drivers transiting from their teenage years to their 20s. When a driver turns 60 years old in the city, such a person’s car insurance increases.


Premiums in Eugene are a bit lower than the state average by 9%. However, migrating from a credit tier to another higher tier could help reduce the payable amount. People who are in the poor credit (300-579) tier pay about 2.3 times more than those in the exceptional credit (800-850). However, a very noticeable percentage decrease can be experienced when a driver migrates from the fair credit tier (580-669) to a good credit tier (670-739). This drastic change can help drivers save up to 20% yearly.

If a driver has a clean driving record, such a person can save up to 58% on insurance rates. On the other hand, reckless driving costs more. Drivers with reckless driving records pay $2,186, which is about 75% higher than the average of the city. When drivers in the town of Eugene reach 20 years of age, they are required to pay about $3,523 less than other age groups. This is the most significant discount that you ever can experience in any age group in Eugene. An increase in premiums, however, occurs when a driver turns 60.

In Eugene, teenage drivers are usually the set of people who pay the highest rates, at $5,184. However, drivers in the 50s pay the least amount, just like in most other cities mentioned above. Drivers in the 50 years age bracket pay $1,103 annually. Women in Eugene pay $1,291, which is 4% more than what men pay. If you are single, you are likely paying 4% more than married people. Singles in Eugene pay $1,247 annually.


As you can see, knowing the Oregon car insurance requirements can help you better understand the options available to you. Then, when looking for the cheapest auto insurance in Oregon, you’ll know that many factors have to be considered. The low-cost options may not offer adequate or appropriate coverage.

It is, however, pertinent not to be only aware of the premium rates but also other factors like customer service, claim processing, best track record customer reviews, among others. Nevertheless, many companies charge moderately with excellent service delivery.

If you’d like to see more information on other states and cities, check out our car insurance guides and resources.

Johnny Jet Editorial