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 estimated to be uninsured, 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 (ORS 742.502) requires every auto policy to include:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident
• Property Damage Liability: $20,000 per accident
• Personal Injury Protection (PIP): $15,000 per person
• Uninsured Motorist Bodily Injury (UM): $25,000 per person / $50,000 per accident

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.

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 — up to Oregon's $15,000 minimum — for medical care, a portion of lost wages, and essential services, regardless of who caused the crash. UM/UIM pays after PIP is exhausted and can also cover categories PIP doesn't, 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 flees the scene (hit-and-run). Oregon generally requires a police report and physical contact between vehicles.
• 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

• Call 911 and get a police report — essential for UM and hit-and-run claims.
• 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.