Uninsured & Underinsured Motorist Coverage in Oregon

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are parts of every Oregon auto policy that step in when the at-fault driver can't pay. About one in eight Oregon drivers is uninsured (Insurance Research Council data as tabulated by the Insurance Information Institute: 12.3 percent, 2022), and many others carry only the state minimum limits. UM and UIM are how your own policy protects you when someone else's coverage isn't enough.

What UM and UIM Cover

• Uninsured Motorist (UM): Pays for your injuries when the at-fault driver has no liability insurance, or when you're hit by a driver who flees the scene (hit-and-run).
• Underinsured Motorist (UIM): Pays when the at-fault driver has insurance, but not enough to cover your medical bills, lost wages, and other damages.

Both coverages sit on your policy but pay for injuries caused by someone else. They are separate from PIP (which pays regardless of fault) and separate from the liability coverage that pays for damage you cause to others.

Oregon's Minimum Coverage Requirements

Oregon law requires every driver to carry liability coverage (ORS 806.010), and ORS 806.070(2) sets the dollar floor. Separate statutes add PIP and uninsured motorist coverage:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident — ORS 806.070(2)(a), (b)
• Property Damage Liability: $20,000 per accident — ORS 806.070(2)(c)
• Personal Injury Protection (PIP): $15,000 per person — ORS 742.524(1)(a)
• Uninsured Motorist Bodily Injury (UM): at least $25,000 per person / $50,000 per accident, and by default equal to your bodily injury liability limits — ORS 742.502(2)(a)

Oregon's UIM Stacking Rule

For policies issued or renewed on or after January 1, 2016, Oregon UIM coverage stacks on top of the at-fault driver's liability limits instead of being reduced by them (Senate Bill 411, Oregon Laws 2015 chapter 5, amending ORS 742.502 and 742.504).

Example:

• At-fault driver's liability limits: $25,000
• Your UIM limits: $100,000
• Total available to you: $125,000

This makes carrying higher UIM limits one of the most cost-effective protections an Oregon driver can buy.

How PIP and UM/UIM Work Together

PIP pays first. It covers up to $15,000 in medical expenses per person, incurred within two years of the injury (ORS 742.524(1)(a)). Two other benefits sit outside that $15,000 and do not reduce it, and which one applies depends on whether you were working. If you were usually employed and your disability lasts at least 14 days, PIP pays 70 percent of your lost income, capped at $3,000 per month and 52 weeks total (ORS 742.524(1)(b)). If you were not usually employed and your disability lasts at least 14 days, PIP instead pays for essential services performed in your place by someone who is not related to you and not living in your household, capped at $30 per day and 52 weeks total (ORS 742.524(1)(c)). UM/UIM pays after PIP and can also cover categories PIP does not, such as pain and suffering, the remaining portion of lost wages, and future medical needs.

Common Scenarios Where UM/UIM Applies

• The at-fault driver has no insurance at all.
• The at-fault driver hit you and fled the scene (hit-and-run). Covered as an uninsured vehicle under ORS 742.504(2)(b) and (2)(k)(B), if the identity of either the driver or the vehicle's owner cannot be ascertained and you meet two deadlines: the accident must be reported within 72 hours to a police, peace or judicial officer or to the Oregon Department of Transportation, or the equivalent agency in the state where the crash happened — a police report is the usual route but it is not the only one — and you must file a sworn statement with your own insurer within 30 days of the crash. Your insurer can also require you to make your vehicle available for inspection.
• A driver forced you off the road without ever touching your car (a "phantom vehicle"). Still a covered UM claim under ORS 742.504(2)(g) and (2)(k)(C) — the lack of contact does not defeat it. The same 72-hour report and 30-day sworn-statement deadlines apply, the driver or owner of the phantom vehicle cannot be identified, and you additionally need the facts of the accident corroborated by competent evidence other than your own testimony or the testimony of anyone else making a UM claim from the same crash (so a passenger in your car who is also claiming does not count): a witness, a dashcam, or physical evidence at the scene.
• The at-fault driver's insurance is insolvent or denies the claim.
• The at-fault driver's policy limits aren't enough to cover your damages — this is when UIM is triggered.

What to Do If the Other Driver Is Uninsured

• If the driver fled or never touched your car, report the crash within 72 hours to a police, peace or judicial officer, or the Oregon Department of Transportation, or the equivalent agency in the state where the crash happened. A sworn statement to your own insurer is due within 30 days of the crash.
• Collect scene details: license plate, vehicle description, witnesses.
• Seek medical evaluation promptly, even if you feel okay. Adrenaline masks injuries.
• Notify your own auto insurance company. Most Oregon policies require prompt notice.
• Do not give a recorded statement to the other driver's insurer without advice. Learn more: Dealing with the Other Driver's Insurance Company.
• Keep every receipt, medical document, and lost-work record.