To be legal on the roads, you must buy and maintain auto insurance.

Ways to Establish Financial Responsibility

While a few other states allow their residents to leave a deposit with the DMV instead of buying car insurance, Oregon does not. All drivers are required to carry car insurance.

Auto dealers may be able to self-insure; check with your DMV office to find out what you need to do.

Oregon Liability Insurance Requirements for Private Passenger Vehicles

You must have a minimum amount of liability insurance, namely:

• $25,000 per person for bodily and property damage.

• $10,000 per crash for others’ property damage.

• $50,000 per crash for bodily injury to others.

• $15,000 of Personal Injury Protection (PIP) for expenses after the crash.

• $25,000 per person/$50,000 per crash of Uninsured Motorist Coverage.

Insurance companies also have additional types of coverage available. You should research each category and decide whether you need it. Then, obtain several quotes from different companies so you can make a well-informed decision.

Exemptions

A few types of vehicles are exempt from insurance requirements:

• Antique cars or collector cars used only for shows or the like.

• Farm tractors or trailers.

• Snowmobiles.

• Non-operational vehicles.

• Motor-assisted scooters and electronic personal motility devices, such as a Segway.

Proof of Insurance and Financial Responsibility

Once you purchase insurance, you’ll have to always carry proof of it in your car and show it during auto registration and some other transactions. You may need to show it during traffic stops, and have the information handy if you are in an accident. Acceptable proof may be:

• The insurance card, original or copy.

• The insurance policy itself.

• A letter signed by the insurance agent on official letterhead.

• A DMV Certificate of Self-Insurance with the owner’s name on it.

• An Oregon auto dealer license plate.

Penalties for Failure to Maintain Financial Responsibility

To check up on whether people are maintaining their insurance, the DMV sends random people letters requesting the name of the insurance company and policy number. The DMV then checks with the insurance company to see if you are indeed covered.

If you have no proof of insurance, you will have to file an SR-22 certificate with the DMV for the next three years to show your financial responsibility.

Your license may also be suspended, and you’ll be responsible for various fines to reinstate it, in addition penalties you’ll receive if you caused an accident while driving uninsured.