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Hillsboro Car Insurance

If you reside in Hillsboro, you are legally required by Oregon law to carry auto insurance on any registered vehicle that you operate on public roads.

Failure to carry sufficient limits of car insurance provided by an insurer that is licensed by the Oregon Division of Insurance to satisfy the vehicle code requirements.

If you are in the process of shopping for Hillsboro car insurance, it is important to understand state requirements and how auto rates are calculated for each individual application.

Read this guide to insurance in Oregon and become an informed consumer before you start to shop. Then, enter your zip code above to search for the best car insurance rates in Hillsboro!

What type of insurance laws exist in Oregon?

Oregon has a mandatory auto insurance law which is called the ORS 806.010 vehicle code. The financial responsibility law states that anyone who drives uninsured without proper liability coverage is in violation of the vehicle code and subject to penalties.

To prove that you are financially responsible, you have the option to self-insure by filing a cash bond with the Department of Motor Vehicles, or by purchasing an insurance policy with a minimum amount of coverage.

Most people will choose to purchase auto insurance because they do not have the cash to post with the department to cover the damages that they cause behind the wheel.

It is also in your best interest to comply with financial responsibility laws by purchasing insurance because you will pay pennies on the dollar for coverage and pass the financial burden an accident causes to an auto insurer.

What Are Auto Insurance Requirements in Oregon?

Oregon is one of the 12 no-fault states in the country. This means that, when you are driving on Hillsboro and you get into an accident, your insurer will pay for your damages rather than the at-fault party's insurer paying for the damages of the not-at-fault party.

Because Oregon operates under a no-fault system, you must carry liability insurance, personal injury protection, and also uninsured motorist to satisfy state law.

Not many states require you to carry coverages that benefit you, but vehicle code is designed to protect you and third-party drivers in the state.

Liability Auto Insurance Requirements

Liability is required to pay for damages that you cause when someone sues you for damages.

While Oregon does follow a no-fault system, in some cases, like when you are involved in an accident with someone from another state, you will need your own liability coverage.

Liability consists of both Bodily Injury and Property Damage coverage. Each option pays for different damages when you, a listed driver or a permissive driver is 51% or more at-fault for a vehicular collision.

Here is a breakdown of how each coverage works:

  • Bodily Injury (BI) - BI is a form of third-party liability coverage that will pay when you are at-fault for an accident and someone who is not in your car sustains injuries. BI limits consist of a per person limit and a per accident limit. In the state of Oregon, you must have no less than $25,000 per person, up to $50,000 per accident in BI.
  • Property Damage (PD) - PD is also a form of third-party liability insurance, but it will pay for damages to property that you cause rather than injuries and medical expenses. In Hillsboro, you must have at least $20,000 per accident in PD coverage.

Personal Injury Protection Requirements

Personal Injury Protection (PIP) is a required coverage in a no-fault state. It will pay for the medical bills and other expenses that you incur when you are in an accident no matter who is found to be at-fault.

In Oregon, all insurers must off you PIP coverage. You must elect to carry no less than $15,000 per person in coverage. This benefit will pay for reasonable medical, dental, and rehabilitation expenses for up to 1 year after the accident.

You can purchase higher limits if you are willing to pay additional premiums.

Uninsured Motorist Protection Requirements

Auto insurance is mandatory in Hillsboro and all throughout Oregon, but there are still drivers who are willing to take the risk and do not comply with the law.

In the state of Oregon, the Insurance Research Council has found that about9 percent of the population is uninsured. This means that about 8760 drivers in Hillsboro alone do not have coverage.

To protect yourself against these drivers, you must carry Uninsured Motorist Protection. This is a required coverage, but can save the day when someone with no insurance hits you and you cannot identify them. You must carry no less than $25,000 per person, up to $50,000 per accident in coverage.

If you carry higher limits, they cannot be higher than your Bodily Injury limits.

You can also purchase Uninsured Motorist Property Damage cover for an additional premium to pay your deductible or for $3500 of damages if your vehicle is damaged.

Additional Coverage Options Available

In addition to the required coverages, you can purchase protection that will offer you financial relief when you need to file specific types of claims. Auto insurance is designed to protect you from unexpected losses and not from vehicle wear and tear.

Here is a breakdown of the optional forms of coverage that you can purchase:

  • Comprehensive - Will pay for repairs or replacement when vehicle for claims caused by fire, theft, vandalism, glass breakage and more.
  • Collision - Will pay for repair or replacement, up to the fair market value in Hillsboro, of your car when it is damaged in a moving accident.
  • Rental Car - Will pay a daily rate for a replacement car when your vehicle is being repaired for a covered accident.
  • Gap Coverage - Will pay off the balance of your loan when your vehicle is worth less than the balance.
  • Towing and Labor - Will pay for towing costs or labor at the site of a disablement.

If you are leasing or financing your vehicle from a finance company in Hillsboro, be sure to ask what is included in your loan and what type of coverage that you must carry.

Most finance companies require you to carry at least comprehensive and collision, but gap coverage could be included in the loan.

What Factors Affect Your Hillsboro Car Insurance Rates

All auto insurance rates must be filed with the Oregon Division of Insurance before they are approved.

This is because the division regulates rates to ensure that consumers are not being discriminated against. Based on all of the rate filings with the Division, the average expenditure for coverage in Oregon is $724.27 per year.

While the rates must be approved, all licensed companies have their own unique rate set.

These rate sets are designed to target a specific type of client and they use risk factors to personalize the rates for each application to then calculate a quote. This is why it is so important to compare rates with several companies before you commit to one.

Here are some of the factors that can affect your Hillsboro car insurance rates:

Age and Gender

Both age and gender can individually affect rates, but these factors work hand and hand.

While young drivers are more of a risk than experienced drivers, young male drivers are statistically more of a risk than young female drivers.

This is why young males pay higher rates than any other demographic. As you gain experience behind-the-wheel, your rates will decline.

Driving Record

Your accident record and claims history will affect your insurance rates because you are a higher risk.

At-fault accidents can eliminate discounts and will lead to surcharges that last for 3 years. Violations can increase your rates for 3 years as well, and are graded by their severity.

Vehicle Classification

Vehicles are rated by their safety features and safety record. If the vehicle has good ratings for safety and a good structural design, it will cost less to insure than a vehicle with poor features and design.

Usage and Mileage

If you use a vehicle to drive to work or school, you will pay more than a person who drives to run errands. This is why commuters and business users pay more than pleasure users.

Those who are in higher annual mileage brackets pay more than people who drive less mileage. The more exposure, the higher the car insurance premiums.

Now that you understand how your Hillsboro rates are calculated and what types of insurance you must carry, it is time to compare rates.

The most effective way to comparison shop in the state of Oregon is to use an intelligent online rate comparison tool that will show you the rates from all of the top insurers. Enter your information a single time, and find the most competitively priced policy today.

In fact, you can try our FREE rate comparison tool below! Just enter your zip code to get started!

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