What is an Auto Insurance Policy?

An auto insurance policy is a contract between you and your insurer. It is purchased to minimize personal financial impact that may affect the car you drive or own. Put very simply, the insurance company promises to pay for certain damages to your car or occupants in exchange for your monthly payment called a premium. This protects you from a huge payment for damages should something happen. The policy may cover such things as auto accidents, medical expenses for injured persons, property damages associated with the repair of vehicles involved in an accident, and damage due to storms, theft, vandalism or natural disaster. Auto insurance is required in the state of Oregon if you drive a car

Do I Have To Have Auto Insurance In The State Of Oregon?

Yes. Car insurance is required in the state of Oregon if you drive or own a car.

What Types Of Auto Insurance Coverage Are There?

Typically, there are 4 general areas of insurance coverage:

  • liability,
  • medical,
  • uninsured motorist, and
  • coverage for damage to your vehicle.

Liability Insurance

Liability insurance pays for legal costs or damages that are filed against you as a result of an accident where you are at fault. If you are found to be at fault for an accident you are liable for the damages to somebody else's property, hence the name liability insurance. There's also liability insurance for bodily injury should legal claims be filed against you if you enter or kill somebody in an auto accident.

Medical Payments Insurance Coverage

With this coverage, your automobile policy will cover you if you or your passengers have medical expenses due to a car accident. "Med Pay" coverage only pays for physical injuries; it does not cover pain, suffering, or lost wages due to a car accident.

Uninsured Or Underinsured Motorists Coverage

This insurance coverage protects you should you be in an automobile accident with a motorist that does not have automobile insurance or does not have enough insurance to cover the damages to you or your car.

Insurance Coverage For Physical Damage To Your Automobile

This coverage pays for physical damages due to collision, vandalism, or fire. It may also cover damages due to burglary or theft. It is important to read the fine print on this type of coverage because there are many exclusions for which you may not be covered. Some insurance policies only cover damages due to collision, while others will only cover damages due to natural disaster or theft.