Why Auto Insurance?
- It is the law: Most states require you to carry minimum of liability insurance. In Oregon you are required by law to have bodily liability coverage, property liability, personal injury protection, and uninsured and underinsured bodily injury liability (link to OR DMV insurance). In Washington you are required to carry bodily liability insurance and property coverage (link to WA DMV insurance).
- Bank: If you have a lienholder on your vehicle, the bank will require you to carry full coverage (comprehensive and collision) on the vehicle because they want to make sure their assets are protected in case of accident, vandalism, and theft.
Types of Coverage
- Liability: This is to a pay for bodily injury and property damage that you cause to others. In Oregon the minimum liability limit that you are required to carry is $25,000 for one person, $50,000 for two or more, $20,000 for property damage. In Washington it is $25K/$50K/$10K.
- Personal Injury Protection: This coverage will pay for medical bill for you and your passenger when you and your passenger get medical treatment. Initially your insurer will pay for this medical bill, no matter whose fault it is. It may also pay for loss of wage, funeral expenses, and loss of services.
- Uninsured and underinsured bodily injury coverage: This pays for injury caused to you and your passenger by someone who is uninsured or underinsured driver. There is also a separate coverage for your vehicle, when your vehicle is hit by uninsured and underinsured driver.
- Comprehensive: This is coverage when your vehicle is lost, vandalized, or stolen. There usually is a deductible (Deductible is the amount you pay before insurance company pays anything).
- Collision: This is coverage when your vehicle is damaged due to an accident that is your fault. There is also a deductible that you may have to pay.
Optional Coverage is Available
- Road side assistance
- Glass coverage
- Loss of use
- Additional equipment coverage
- Gap coverage for new vehicle