Oregon Car Insurance Umbrella Policy

Drivers in Oregon must have car insurance in place in order to drive legally in the state. They are required to have $25,000 in bodily injury liability coverage for one person and $50,000 in coverage for multiple victims of the same accident. Along with the bodily injury liability coverage, Oregon drivers must buy $20,000 in property damage liability coverage.

It may be tempting to buy only the level of coverage required by law, but Oregon car insurance customers should consider their decision carefully. In the case of a serious accident, this may not be enough to pay for the damages caused. The insurance company will pay out up to the policy limit only, and any amount owing above it must be paid by the responsible driver personally.

To protect a policyholder from having to pay for accident damages him or herself, an umbrella policy is available. This coverage is designed to provide added protection if an Oregon driver is sued for damages following an accident. It kicks in once the bodily injury liability insurance policy limit has been exhausted and pays out up to the limit the customer chooses.

As with all car insurance policies, consumers should shop around for the best rates and coverage terms. The policyholder’s current car insurance company may provide this coverage, but since it is a separate policy a customer should ask for quotes from several providers before making a decision.