Practice Area - Car Accidents

HB 2326: Changes in Oregon car insurance laws

On April 9, 2009, Oregon Governor Kulongoski signed House Bill 2326 as an amendment to ORS 742.524 into law. The provisions of the bill will effectively raise the PIP maximum monthly wage loss reimbursement, and increase the minimum property damage limit of liability insurance.

In other words, as of Jan. 1, 2010, if you have been injured in a car crash such that you cannot work for a given period of time, you can collect up to 70% of your wages from your car insurance's PIP up to a maximum of $3,000 per month for one year. That maximum used to be $1,250 per month, and with HB 2326, has been raised for the first time in 20 years. In effect, HB 2326 has more than doubled the maximum monthly wage reimbursement of PIP policies. If you have been injured in a car crash and consequently cannot work for an entire year, the maximum you could have collected from your PIP before HB 2326 was $15,000. That number is now $36,000. For many Oregonians, this is the difference between staying in one's home and living on the streets.

Also, Oregon automobile insurance policies used to be required to provide at least $10,000 in liability insurance for property damage. With HB 2326, that number will go up to $20,000. As of Jan. 1, 2010, all issued and renewed insurance policies must include a minimum amount of $20,000 in property damage, meaning that if somebody hits you and damages your vehicle, that person's car insurance should include at least a $20,000 limit for covering the cost of repair.

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