The State of Oregon has a mandatory insurance law which requires every vehicle owner to insure their vehicle. If a driver ignores the liability insurance law, he can face fines up to $300 and a one year suspension of his driver’s license. This is a big price to pay for going without car insurance. Can you imagine not being able to drive to work? Many people got their license suspended and continue to drive. This is a recipe for disaster and you shouldn’t do this if you plan to avoid incarceration.
Owning and operating a personal vehicle is the second biggest expense in most families. The cost of gasoline, auto insurance policy, repairs, maintenance, and car payments add up to a significant monthly expense. We can put off minor repairs for a short time, but gasoline and insurance are a real daily necessity. We can’t avoid insurance expense so we need to take the time to shop and minimize that bill as much as we can.
We also need to make sure our insurance policies are updated every few years. Most of us start with the minimum policy, but as we earn more money and increase our net worth, we need to review to see if the policy is enough.
Here is Oregon’s minimum liability requirement
|Bodily injury and property damage liability||$25,000 per person;
$50,000 per crash for bodily injury to others; and
$20,000 per crash for damage to the property of others
Let’s take a closer look. The minimum per crash damage to the property of others is only $20,000. Many cars now cost much more than $20,000 and if you cause an accident that involves multiple vehicles, this is not going to cover it. When you are a poor student, you won’t have any assets for the plaintiff to go after. However, if you have been working for a while and have a house and other investments, then it’s only prudent to increase your coverage.
These days it’s fast and easy to obtain an auto insurance quote online. There are several websites that will help you compare different policies and find one that fits your situation. Some of these providers can even find you an option that may save you “an average of $200 per year.” It is important to compare policies because you want to be sure that you are covered appropriately based on your situation.
Is your auto insurance policy enough to cover a potential scenarios such a multiple vehicle accident?
Photo credit: Flickr: DuncanDuncan1