How Does Personal Injury Protection (PIP) Work in Oregon?

Oregon is a fault-based state when it comes to vehicle accident insurance. This means that any person who causes a vehicle accident will be responsible for paying compensation to other parties who sustained injuries or property damage as a result of the accident. However, unlike other states, Oregon law does require individuals to carry personal injury protection (PIP) insurance. Here, we want to define PIP insurance as well as how individuals recover this compensation.

What is Personal Injury Protection Insurance?

In the state of Oregon, every driver is required to purchase and carry personal injury protection (PIP) insurance as part of their overall policy. This is not required in every state across the country, but it is in Oregon. In this state, every driver must carry at least $15,000 worth of PIP insurance.

PIP insurance is designed to cover medical expenses, lost wages, and other accident-related costs that may arise when an accident occurs. Most individuals choose to purchase PIP insurance with higher policy limits, often up to $100,000 per individual.

How Does PIP Work in Oregon?

PIP insurance may seem repetitive for some individuals, particularly if they already carry bodily injury protection or property damage liability. However, PIP insurance provides compensation to individuals regardless of who was at fault for an accident. PIP will cover:

• Medical expenses. This includes any emergency medical expenses as well as ongoing medical costs related to the accident injuries.
• Lost wages. The insurance will cover 70% of lost wages caused by the car accident, up to a maximum of $3000 per month. However, these benefits will not kick in until you have missed at least two consecutive weeks of work.
• Funeral expenses. Funeral expenses will be covered if you lose your life as a result of the accident, up to $5,000.
• Other expenses are rising due to the injury. This can include the replacement of household services, including normal household tasks you cannot do as a result of your injuries, as well as childcare during your hospitalization.

In some circumstances, PIP policies will come with a deductible where an individual will have to pay this deductible before the PIP coverage kicks in. Paying a deductible can help reduce the premiums, though there are certainly policies that do not have deductibles attached.

Circling back to the main benefit of PIP insurance, this type of coverage will kick in regardless of who caused the accident. Even if you are responsible for a vehicle accident, you will still be able to turn to your own PIP insurance to recover medical expenses and lost wages, both of which are crucial in the aftermath of an accident. This is important because individuals who cause accidents in states that do not require PIP insurance are often left paying for medical bills and lost wages out of their own pocket.

If another driver caused your accident in Oregon, then their insurance should be responsible for covering your medical bills and other expenses related to the accident. However, if the other driver’s insurance policy limits are not adequate enough to cover all of your expenses, you can turn to your personal PIP coverage to help make up for the difference. Call us today to speak with a Portland personal injury lawyer.