In Oregon House Bill (HB) 2326 amended current auto insurance laws and will go into effect as of January 1, 2010.

The basics of the new/amended Oregon laws is that the Property Damage Liability minimum limit is going up from $10,000 to $20,000 and that Personal Injury Protection (PIP) lost wages amount is increasing.

So this new law makes changes to Oregon Revised Statutes (ORS) 806.07 which is part of Oregon's Financial Responsibility Law. The current law requires all automobile insurance policies carry at least $10,000 in Liability coverage for “injury to or destruction of the property of others in any one accident.” HB 2326 increases the required minimum amount of acceptable coverage from $10,000 to $20,000.

Under the Insurance Code, the passage of HB 2326 also increases the minimum amount of optional Uninsured Motorist coverage for Property Damage (UMPD) that must be offered on private passenger motor vehicles not more than 12 years old from $10,000 to $20,000.

So the limit of $10,000 Property Damage Liability and Uninsured Motorist Property Damage will no longer be available, the new minimum limit will be $20,000 for new policies issued and for policies renewed on or after January 1, 2010. This will make the minimum Liability limits for car insurance policies in Oregon to be 25/50/20. And if someone purchases the optional UMPD coverage it will also be for $20,000.

The other change to car insurance that HB 2326 does is significantly increase the maximum amount of lost income a PIP eligible claimant may recover. PIP coverage is a mandatory part of a motorist auto insurance policy.

Under ORS 742.524, a PIP eligible claimant who is usually engaged in a remunerative occupation (i.e., a job that pays), but is unable to perform that occupation for at least 14 days because of a motor vehicle accident, is allowed to receive 70% of his or her lost income or $1,250 per month, whichever is less. HB 2326 has changed the maximum monthly recoverable amount from $1,250 per month to $3,000 per month. Thus, the yearly maximum will increase from $15,000 to $36,000 in 2010.

This change to PIP in OR means that as of Jan. 1, 2010, if you have been injured in a car accident and due to your injuries 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.

This new law has thus 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 annual amount you can collect as of 1/1/2010 will be $36,000.

The amendments to ORS 742.524 and 806.070 by the 2009 Act under House Bill 2326 applies to motor vehicle insurance policies issued or renewed on or after the effective date of January 1, 2010.

Other House Bills that affect motor vehicle insurance include HB 2369 and HB 2370.

House Bill 2369 continues the rights of the motor vehicle liability insurer who provides PIP benefits to recover those payments from the responsible person's insurer if there is a settlement within 60 days after the accident. The bill requires insurers to state these rights in the release signed by the injured person and provide other disclosures to the injured person. The effective date will be January 1, 2010.

House Bill 2370 requires insurers offering Liability, PIP, or Collision coverage to offer a premium discount to the principal operator of a motorcycle who has completed a motorcycle rider education program. In accordance with Oregon law, the Oregon Department of Transportation, in a cooperative venture with TEAM OREGON and Oregon State University, established this motorcycle rider education program that brings about the discount.

The new law states that only one motorcycle per principal operator is eligible for the discount and the motorcycle must not be used for business. If an insurance policy covers motorcycles and other vehicles, the premium discount is limited to the motorcycle portions of the policy. This bill applies to motor vehicle insurance policies issued or renewed on or after the effective date of 1/1/2010.

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