Oregon Car Insurance and Underwriting Standards

When a customer applies for Oregon car insurance coverage, the application goes through the company’s underwriting process. The insurer will consider various factors to determine how risky that person would be to cover, including:

  • Make and model of the vehicle
  • Previous driving record
  • Prior insurance history
  • Credit history

Under state law, Oregon car insurance companies are restricted as to how they can use credit information. They are barred from using a customer’s credit history as a reason for raising premiums when a policy is up for renewal. An insurance company cannot cancel an existing policy or refuse to renew it for credit-related reasons, either.

The car insurance company is required to inform an applicant that it will be conducting a credit check before doing so. In a case where the insurance company has made a decision not to offer the best rate to an applicant because of credit issues, an Oregon car insurance company is required to disclose this fact.

When this occurs, the customer should order a copy of his or her credit report from each of the three credit reporting services:

  • Equifax
  • Experian
  • Trans Union

If any errors are detected on the report, the customer can notify each credit reporting bureau in writing and ask that it be corrected. He or she will need to followup a few weeks later to confirm that the record has been updated.