Underinsured Motorist Coverage
Oregon requires that drivers carry a minimum of $25,000 in underinsured motorist coverage. This coverage is enacted if you have a personal injury claim that is worth more than the at-fault driver’s insurance coverage and your recovery from teh at-fault driver is less than your own underinsured motorist limits. Unfortunately, in Oregon underinsured motorist coverage does not “stack". In other words, if you have a personal injury claim against a driver with the same insurance coverage as your own underinsured coverage, you do not receive any benefits unless those liability limits are partially or entirely paid to someone else.
Real Life: If you incurred $50,000 in medical expenses and the at-fault driver's insurance pays you their minimum$25,000 liability policy and your underinsured motorist coverage was the minimum $25,000, you receive nothing from your own insurance carrier. This may seem unfair, since you’ve paid premiums for a policy worth $50,000 but can only receive $25,000 since you’ve already been paid $25,000 from the liability carrier. If, however, you have $50,000 in underinsured coverage, the most you can recover from your own insurance carrier is$25,000 if you've already received $25,000 from the at-fault driver's insurance carrier.