A Consumer’s Guide to Auto Insurance (source: dfr.oregon.gov)

  Credit information is available from three credit bureaus: 
Types of coverage when you purchase an auto insurance policy, you’re really buying several types of coverage. There are seven basic types:
  • Bodily injury liability coverage pays for damages other people incur if you or someone you allow to drive your car causes an auto accident. Examples of damages include medical expenses, rehabilitation, funeral costs, settlement of lawsuits, and legal expenses. 
  • Property damage liability coverage pays for damage to other people’s property if you or someone you let drive your car causes an auto accident. It usually pays for repair or actual cash value (ACV) of others’ property and your legal expenses.
  •  Uninsured and underinsured motorist bodily injury coverage pays medical, rehabilitation, and funeral expenses, loss of earnings, and other damages if you or your family are involved in a vehicle, bicycle, or pedestrian accident caused by an uninsured or underinsured motorist or a hit-and-run driver. 
  • Uninsured motorist property damage coverage pays for damage to your auto caused by an uninsured driver. This optional coverage generally duplicates your collision coverage, but may be a good buy if you have a high deductible on your collision coverage or don’t have collision coverage.
  •  Collision coverage pays for repairing your vehicle in a collision or rollover.
  •  Comprehensive coverage pays for damage to your vehicle resulting from theft, vandalism, windstorms, fire, hail, etc  
  •  Personal injury protection (PIP) coverage pays for medical, rehabilitation, funeral, and childcare expenses, as well as for loss of earnings and in-home help if you and your passengers are injured in an accident, regardless of who is at fault.
  1.  Medical services: Treatment is considered reasonable and necessary unless a provider receives a denial notice within 60 calendar days of claim notice. After that, the burden of proving that treatment was not reasonable and necessary is on the insurance company.
  2. Loss of earnings: This benefit is available if your injury prevents you from returning to work. It begins on the 14th day of your disability. You receive up to 70 percent of wages up to a maximum benefit of $3,000 a month for 52 weeks. 
  3. Essential services: If you are not employed, you are entitled to reimbursement of reasonably incurred expenses for the essential services that you would normally perform. You will receive up to $30 a day for up to 52 weeks. This benefit begins on the 14th day of disability. 
  4. Funeral expenses: You will be paid for reasonable and necessary funeral expenses within one year of the date of injury up to a maximum benefit of $5,000. 
Oregon law and your insurance policy allow PIP benefit disputes to be resolved by arbitration as long as both parties agree at the time of the dispute. Know your PIP limit. Carefully review this coverage and consider raising your limit.   
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