Uninsured and Underinsured Motorist Claims in Oregon

You drive carefully, maintain proper insurance, and follow the rules of the road. Then another driver runs a red light or rear-ends you at a stoplight---and you discover they have no insurance at all, or carry only Oregon's bare-minimum liability limits that come nowhere close to covering your injuries. This scenario plays out with alarming regularity on Oregon roads. When the at-fault driver cannot cover your losses, your own uninsured motorist (UM) and underinsured motorist (UIM) coverage becomes your most important financial safety net.

Oregon's UM/UIM Requirements Under ORS 742.502

Under ORS 742.502, every auto insurance policy issued in Oregon must include uninsured motorist (UM) and underinsured motorist (UIM) coverage with limits at least equal to your liability coverage limits---unless you have specifically rejected or reduced this coverage in writing. If you carry the state minimum liability limits of $25,000/$50,000, your UM/UIM coverage must also be at least $25,000/$50,000 unless you signed a written waiver.

The distinction between UM and UIM coverage is straightforward but important:

• Uninsured motorist (UM) coverage applies when the at-fault driver has no liability insurance at all, or in hit and run situations where the at-fault driver is never identified.
• Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their policy limits are insufficient to cover the full extent of your damages.

How UM Claims Work

When you are injured by a driver who has no insurance, you file a UM claim with your own insurance company. Your UM coverage steps into the shoes of the insurance the at-fault driver should have carried. You can recover medical expenses, lost wages, pain and suffering, and other compensable losses---the same types of damages you would pursue in a claim against the other driver's insurer. The critical difference is that you are making a claim against your own insurance company, which creates a dynamic many accident victims do not anticipate.

How UIM Claims Work

Underinsured motorist claims are triggered when the at-fault driver's liability coverage is insufficient to compensate you fully. Here is a common example: You suffer $120,000 in damages from a car accident, but the at-fault driver only carries Oregon's minimum $25,000 per-person liability limit. After recovering the $25,000 from the other driver's insurer, you may turn to your own UIM coverage to seek the remaining $95,000, up to your UIM policy limits.

In Oregon, UIM coverage is calculated as the difference between your UIM policy limit and the at-fault driver's liability limit. If you carry $100,000 in UIM coverage and the at-fault driver had $25,000 in liability coverage, the maximum additional recovery available through your UIM policy is $75,000. Understanding this calculation is essential for evaluating your claim and setting realistic expectations.

PIP as a First Line of Recovery

While your UM or UIM claim is being processed, Oregon's mandatory Personal Injury Protection (PIP) coverage provides immediate financial relief. PIP pays for medical expenses and a portion of lost wages regardless of who caused the accident. The minimum PIP coverage in Oregon is $15,000, though higher limits are available.

PIP benefits can be accessed right away---you do not need to wait for fault to be determined or for your UM/UIM claim to be resolved. This makes PIP an essential first line of recovery, helping you cover medical bills and replace lost income during the early stages of your case when financial pressure is often most acute.

Stacking UM/UIM Policies

Oregon law permits stacking of UM/UIM coverage in certain situations. Stacking means combining the UM/UIM limits from multiple policies to increase the total coverage available to you. Common stacking scenarios include:

• Multiple vehicles on one policy. If your auto policy covers more than one vehicle, you may be able to stack the UM/UIM limits for each vehicle, effectively multiplying your coverage.
• Multiple policies. If you are a named insured or a resident relative on more than one auto policy, the UM/UIM coverage from each policy may be available to you.

Not all policies permit stacking, and insurance companies frequently include anti-stacking provisions in their contracts. Whether stacking applies in your case depends on the specific language of your policies and current Oregon case law. An experienced attorney can review your policies and determine whether stacking increases the coverage available for your claim.

Filing a Claim Against Your Own Insurer

One of the most challenging aspects of UM/UIM claims is that you are filing against the company you pay premiums to. While your insurer has a contractual obligation to honor your policy, they are also a business with a financial incentive to pay as little as possible. Common insurer tactics in UM/UIM claims include:

• Disputing fault --- arguing that you were partially or fully responsible for the accident to reduce the claim under Oregon's comparative negligence rule (ORS 31.600)
• Minimizing your injuries --- using independent medical examinations or records reviews to challenge the severity or causation of your injuries
• Lowball settlement offers --- presenting an early offer that does not reflect the true value of your claim, hoping financial pressure will lead you to accept
• Delaying the process --- drawing out the claim in the hope that frustration and financial need will push you to settle for less

Todd Huegli has handled UM/UIM claims throughout his career and understands how insurance companies approach these cases from the inside. Having an attorney advocate on your behalf signals to your insurer that you are serious about recovering full and fair compensation.

Arbitration vs. Litigation

Many Oregon auto insurance policies include an arbitration clause for UM/UIM disputes. Arbitration is a private process where a neutral arbitrator hears both sides and renders a binding decision, rather than a judge or jury. It can be faster and less formal than a courtroom trial, but it also has limitations---discovery may be more restricted, and the right to appeal is typically narrow.

Whether arbitration or litigation is more advantageous depends on the facts of your case, the amount in dispute, and the specific terms of your policy. Either way, the process demands thorough preparation. Todd Huegli has tried over 40 jury trials and brings that same level of preparation to every UM/UIM dispute, whether resolved at an arbitration table or in a courtroom.

Why Adequate UM/UIM Coverage Matters

Oregon's minimum liability limits of $25,000 per person are dangerously low in the context of modern medical costs. A single emergency room visit and surgery can exceed that amount many times over. Carrying higher UM/UIM limits is one of the most effective steps any Oregon driver can take to protect themselves and their family. The cost of increasing coverage is often modest compared to the protection it provides.

Protect Your Rights After an Accident with an Uninsured or Underinsured Driver

If you have been injured by a driver with no insurance or insufficient coverage, you have legal options. Oregon's UM/UIM laws are designed to ensure that responsible drivers are not left without recourse when the at-fault party cannot cover the damages they caused. But navigating a claim against your own insurance company requires a clear understanding of your policy, Oregon law, and the strategies insurers use to minimize payouts.

An experienced personal injury attorney can review your coverage, identify all available sources of recovery---including stacking opportunities---and pursue your claim aggressively. If you or a loved one is dealing with the aftermath of an accident involving an uninsured or underinsured driver, seeking legal guidance early gives you the best chance of recovering the compensation you deserve.