Learning that the at-fault driver has little or no insurance can create immediate financial stress. In Oregon, the law anticipates this situation and requires coverage that often shifts the claim to your own policy.
Your main option is usually UM or UIM coverage
Oregon auto policies include uninsured motorist coverage. Underinsured motorist coverage can also apply when the other driver has insurance but not enough to fully cover your damages. These coverages generally work as follows:
- Uninsured motorist coverage: This takes place when the at-fault driver doesn’t have existing insurance or the crash is a hit-and-run.
- Underinsured motorist coverage: This takes place when the at-fault driver’s limits are too low.
UM and UIM claims can include medical expenses, lost wages and pain and suffering, up to your policy limits.
How PIP benefits can help right away
Oregon also requires personal injury protection coverage. PIP can pay certain medical bills and wage loss regardless of fault. According to the Oregon State Bar, PIP may apply if you are insured under your own policy, were riding in an insured vehicle or were struck as a pedestrian. Benefits can include up to $15,000 for medical care within one year of the crash, partial wage replacement and limited payments for essential services or childcare
Other coverage that may reduce out-of-pocket costs
UM or UIM coverage is not always the only source of payment. Other policies may help while the claim is pending. Common examples include:
- Health insurance: Can cover treatment but often seeks reimbursement later.
- Collision coverage: Can pay for vehicle repairs, subject to your deductible.
These options can help prevent gaps while liability issues are sorted out.
Suing the at-fault driver has practical limits
You can sue an uninsured or underinsured driver but collecting payment can be difficult. If the driver has little income or few assets, a judgment may not result in real recovery. This is why many people rely primarily on their UM or UIM coverage.
Next steps one can take
UM and UIM claims are still insurance disputes. An attorney can review your policy, explain how PIP, UM and UIM interact and help avoid missteps that reduce recovery. This can be especially important when injuries are serious or coverage limits are disputed.