Oregon Auto Insurance Regulations
Consumer guide to
Auto Insurance
Oregon Insurance Division
About the Oregon Insurance Division
The mission of the Insurance Division is to administer the Insurance Code for the protection of the insurance-
buying public while supporting a positive business climate.
We ensure the financial soundness of insurers, the availability and affordability of insurance, and the fair treat-
ment of consumers by doing the following:
· Licensing insurance companies and monitoring their solvency
· Reviewing insurance products and premium rates for compliance
· Licensing insurance agents and consultants
· Resolving consumer complaints
· Investigating and penalizing companies and agents for violations of insurance law
· Monitoring the marketplace conduct of insurers and agents
· Educating the public about insurance issues
· Advocating reforms that protect the insurance-buying public
Call us for help
Consumer Protection Section -- (503) 947-7984 or (888) 877-4894 (toll-free in Oregon)
You have the right to seek assistance from the Insurance Division at any time by filing a formal complaint
against an insurance company or agent. A copy of the complaint is sent to the insurance company. A re-
sponse from the insurance company or agent must be received at the Insurance Division within 21 days. If
the response is not adequate, a consumer advocate will work with you and the insurance company to try to
resolve the problem. The Insurance Division will forward a copy of the insurance company's response to
you. If a law has been broken, the matter may be referred to the Insurance Division's Investigations Unit.
Company Section -- (503) 947-7982
To find out if a company is authorized to sell insurance in Oregon, call our Company Section or visit our
Web site, insurance.oregon.gov; click on company information.
Agent Licensing Unit -- (503) 947-7981
To find out if your insurance agent is licensed to do business in Oregon, call our Agent Licensing Unit or
visit our Web site, insurance.oregon.gov; click on agent information.
Senior Health Insurance Benefits Assistance (SHIBA) -- (503) 947-7984 or (800) 722-4134
(toll-free in Oregon)
Call SHIBA for information about Medicare and other health insurance for Medicare-eligible people, or visit
SHIBA's Web site, oregonshiba.org.
Visit our Web site
The Oregon Insurance Division's Web site includes all of our publications as well as other useful information
for consumers. You can file a complaint against an insurance company or agent, check to see if an insurer is
authorized to do business in Oregon, and find out if your insurance agent is licensed in Oregon. Our Web ad-
dress: insurance.oregon.gov.
Table of contents
Choosing an insurer ........................................................................................................2
Auto insurance basics ..................................................................................................2-4
Underwriting standards ..............................................................................................................2
Credit scoring ...............................................................................................................................2
Rating categories ..........................................................................................................................3
Types of coverage .........................................................................................................................3
Extra liability coverage ................................................................................................................4
Your right to be treated fairly .....................................................................................................4
What to do if you can't get coverage ..........................................................................................4
A safety net for consumers .........................................................................................................4
Oregon requirements ......................................................................................................5
Required coverages ......................................................................................................................5
Proof of insurance ........................................................................................................................5
Filing a claim ....................................................................................................................6
Dealing with total-loss claims ................................................................................... 6-7
Saving money on auto insurance .............................................................................. 7-8
Auto-insurance questions & answers .......................................................................8-9
Price comparisons .................................................................................................... 10-14
Using the price comparisons ....................................................................................................10
Example 1 -- Tire family ...........................................................................................................11
Example 2 -- Bill & Barbara Bumper .......................................................................................12
Example 3 -- Kyle Klutch ..........................................................................................................13
Example 4 -- Lloyd & Linda Lugnut .......................................................................................14
Company information ............................................................................................. 15-18
Glossary ...........................................................................................................................19
Insurance publications ................................................................................................. 20
1
Choosing an insurer
Auto insurance helps protect you and your family
companies. Companies may charge a fee for these
from losses resulting from motor vehicle accidents.
services.
Oregon law requires every car to be covered by
A.M. Best Company
automobile insurance.
(908) 439-2200
The cost for coverage varies widely among
www.ambest.com
companies doing business in Oregon. That's why it's
Fitch, Inc.
important to shop around when choosing an insur-
(800) 853-4824
ance company.
www.fitchratings.com
This booklet can help you make an informed deci-
Moody's Investor Services
sion. It includes information about what kinds of
(212) 553-0377
coverage are required, how to shop for insurance,
www.moodys.com
and tips to hold down your costs. It also allows you
to compare rates for the major auto insurance com-
Standard & Poor's Rating Information Services
panies doing business in Oregon.
(212) 438-2400
www.standardandpoors.com
The rate comparisons in this booklet are designed
to be used as a guide and don't cover all situations.
Weiss Ratings, Inc.
For specific information about rates, you'll need to
(800) 289-9222
contact individual agents or companies.
www.weissratings.com
Comparison shopping takes a little more time, but it
One source of information about how companies
can save you money!
treat their policyholders is the Consumer Guide to
Oregon Insurance Complaints, which annually ranks
However, cost is just one factor to consider when
insurers from best to worst based on the number of
choosing an insurance company. It's also important
consumer complaints received by the Insurance Di-
to look at the company's financial condition and
vision. To request a copy, call (503) 947-7984 or (888)
how it treats its policyholders.
877-4894 (toll-free in Oregon). The guide is also on
A company's financial information is available
our Web site, insurance.oregon.gov; click on publi-
from the following organizations that rate insurance
cations.
Auto insurance basics
Underwriting standards
Credit scoring
Underwriting standards are rules insurance compa-
Many insurance companies look at a consumer's
nies use to decide whether to insure you. A compa-
credit history to decide whether to issue or renew
ny may reject your application for coverage if your
an auto or home insurance policy or how much to
circumstances do not meet the company's under-
charge. This practice is known as credit scoring or
writing standards or risk factors. Drivers with the
insurance scoring.
lowest risk factors are least likely to have a claim, so
they receive the lowest rates for insurance.
Insurance scoring has been controversial, and a
number of states, including Oregon, have placed
Insurance companies typically review the following
limits on its use. In Oregon, insurers can't use a
when deciding whether to insure you:
policyholder's credit information to raise premiums.
· driving record
Also, the law prohibits insurers from canceling or
· car make and model
refusing to renew existing policies because of credit
history problems.
· prior insurance coverage
Insurers can use credit information when deciding
· consumer credit history
whether to issue a new policy, but only if they can
2
Auto insurance basics
document that it helps them predict future claim
ers with little experience, drivers with histories of
costs and price their products fairly. At the same
tickets or accidents, drivers with poor premium-
time, they must demonstrate that credit informa-
payment records, and drivers with convictions for
tion is used as part of an evaluation system that also
driving recklessly or under the influence of alcohol
relies on other relevant factors.
or other drugs.
Oregon insurers and agents must tel consumers how
the company uses credit information before running
Types of coverage
credit checks. If a company uses credit information
When you purchase an auto insurance policy, you're
to prescreen applicants, the company must notify
really buying several types of coverage. There are
you of this before running a credit check.
seven basic types of coverage:
If an insurer uses credit information to make an "ad-
· Bodily injury liability coverage pays for dam-
verse" decision, such as not to offer the best rate or
ages other people incur if you or someone you
not to offer a policy, the insurer must give you spe-
allow to drive your car causes an auto accident.
cific reasons for the adverse action. You have a right
Examples of damages include medical expenses,
to a free copy of your credit report from the credit
rehabilitation, funeral costs, settlement of law-
bureau. If you find an error in your credit report and
suits, and legal expenses.
arrange with the credit bureau to correct it, you can
ask the insurer to reconsider
· Property damage liability coverage pays for
damage to other people's property if you or
Credit information is available from three credit
someone you let drive your car causes an auto
bureaus:
accident. It usually pays for repair or actual cash
Equifax --
value (ACV) of others' property and your legal
www.credit.equifax.com or (800) 685-1111
expenses.
Experian --
· Personal injury protection (PIP) coverage pays
www.experian.com or (888) 397-3742
for medical, rehabilitation, funeral, and child-
Trans Union --
care expenses as well as for loss of earnings and
www.transunion.com or (800) 888-4213
in-home assistance if you and your passengers
If there are mistakes, ask the credit bureau to correct
are injured in an accident, regardless of who is at
the information.
fault.
· Uninsured motorist bodily injury coverage pays
Rating categories
medical, rehabilitation, and funeral expenses, loss
of earnings, and other damages if you or your
If you are approved for coverage, the insurance com-
family are involved in a vehicle, bicycle, or pedes-
pany wil place you in one of three basic categories of
trian accident caused by an uninsured motorist or
drivers: preferred, standard, or nonstandard.
a hit-and-run driver.
Preferred: This category is for drivers considered the
· Uninsured motorist property damage coverage
best risks, which usually means the safest drivers.
pays for damage to your auto caused by an un-
Preferred drivers have maintained clean driving
insured driver. This optional coverage generally
records for the past three years and pay the lowest
duplicates your collision coverage, but may be a
rates.
good buy if you have a high deductible on your
Standard: This category is for drivers considered
collision coverage or don't have collision coverage.
moderate risks. Rates for standard drivers are higher
· Collision coverage pays for repairing your vehicle
than those for preferred drivers. People in this cat-
in a collision or rollover.
egory usually drive "family" cars and have reason-
ably clean driving records.
· Comprehensive coverage pays for damage to
your vehicle resulting from theft, vandalism,
Nonstandard: This category is for drivers considered
windstorms, fire, hail, etc.
high risk. They pay the highest rates for insurance.
This category may include drivers under 25, driv-
3
Auto insurance basics
Extra liability coverage
What to do if you
You can buy a separate personal umbrella policy
can't get coverage
to provide extra liability protection if you are sued.
An umbrella policy benefit will start paying when
If you are an individual or company having difficulty
your other policy's liability limits are exhausted. For
buying automobile liability insurance, you may qual-
example, let's say you lose control of your car and
ify for coverage under the assigned risk pool through
cause an accident that kills one person, seriously
the Automobile Insurance Plan of Oregon.
injures four others, and damages seven vehicles and
Additional information or assistance can be
one residence. The liability damages sustained in
obtained by contacting your insurance agent or bro-
this accident are likely to exhaust the limits of your
ker or Western Association Automobile
auto policy. A personal umbrella policy provides ad-
Insurance Plans. P.O. Box 7917, San Francisco, CA
ditional liability protection.
97104, (800) 227-4659.
Your right to be treated fairly
A safety net for consumers
An insurance company cannot deny, refuse to re-
Most states, including Oregon, have a safety net to
new, limit, or charge more for coverage because of
protect insurance consumers from financial loss if
your race, color, religion, or national origin.
an insurance company becomes insolvent and is
A company also cannot deny, refuse to renew, limit
unable to pay claims. Oregon's safety net is called
or charge more for coverage because of your age,
the Oregon Insurance Guaranty Association. The
gender, marital status, disability, or partial disability
association was established by state law and is gen-
unless the refusal, limitation, or higher rate is "based
erally composed of licensed insurance companies
on sound underwriting or actuarial principles."
doing business in the state. It pays covered claims
of Oregon policyholders and other claimants up to
In addition, a company cannot unfairly discriminate
$300,000 if an Oregon-licensed insurance company
between individuals of the same (rate) class and
becomes insolvent. Claims are paid according to the
essentially the same hazard (risk) in its rates, policy
terms of the original insurance policy, and the asso-
terms, benefits or in any other manner unless the
ciation won't pay any claim the insurance company
refusal, limitation, or higher rate is "based on sound
would not have paid.
actuarial principles."
4
Oregon requirements
Required coverages
Funeral expenses: You will be paid for reasonable
Oregon law requires every vehicle to be covered by
and necessary funeral expenses within one year
auto insurance. Nevertheless, millions of dollars in
of the date of injury up to a maximum benefit of
damage is caused each year by uninsured drivers.
$2,500.
This includes damage to vehicles and medical care
Oregon law and your insurance policy al ow PIP
for those injured in accidents.
benefit disputes to be resolved by arbitration as long
Oregon's mandatory-insurance law requires that
as both parties agree at the time of the dispute.
drivers have at least these minimum coverages:
Know your PIP limit. Review this coverage care-
fully and consider raising your limit.
· Bodily injury (BI) liability
$25,000 per person, $50,000 per accident for bodily
· Uninsured motorist bodily injury
injury to others.
(UMBI) coverage
· Property damage (PD) liability
$25,000 per person, $50,000 per accident for bodily
injury to you and your passengers
$10,000 per accident for damage to the property of
caused by an uninsured driver.
others.
UMBI coverage requires your insurance company
· Personal injury protection (PIP)
to pay all expenses that would normally be paid
PIP is Oregon's version of no-fault insurance. It al-
by the other person's company if you are hurt by
lows you and your passengers, regardless of who
an uninsured motorist.
caused an accident, to have insurance coverage
Consider increasing this coverage on your policy,
for "reasonable and necessary" medical, dental,
because an uninsured motorist probably cannot
hospital, surgical, ambulance, and prosthetic ser-
compensate you for your losses.
vices incurred within one year after the date of an
injury up to a maximum of $15,000.
Remember, these are the minimum coverages
required by Oregon law, not levels of coverage
In Oregon, minimum PIP benefits include limited
recommended by the Insurance Division.
coverage for loss of earnings, funeral expenses,
essential services, and child care.
Proof of insurance
Medical services: Treatment is considered rea-
sonable and necessary unless a provider receives
Oregon law requires drivers to carry proof of liabil-
a denial notice within 60 calendar days of claim
ity insurance. The law also requires your insurance
notice. After that, the burden of proving that
company to send you an insurance card that shows
treatment was not reasonable and necessary is
the effective date and expiration date of your policy.
on the insurance company.
Keep this card in your vehicle at al times.
Loss of earnings: This benefit is available if your
Driving without liability insurance could result
injury prevents you from returning to work. It
in fines, suspension of driving privileges, and im-
begins on the 14th day of your disability. You re-
pounding of your vehicle.
ceive up to 70 percent of wages up to a maximum
If a judge convicts you of driving uninsured, you
benefit of $1,250 a month for 52 weeks.
will have to file proof of financial responsibility
Essential services: If you are not employed, you
with the Driver and Motor Vehicle Services (DMV)
are entitled to reimbursement of reasonably in-
for three years or face suspension of your license.
curred expenses for the essential services that you
This is in addition to any fines you must pay.
would normally perform. You will receive up to
$30 a day for up to 52 weeks. This benefit begins
on the 14th day of disability.
5
Filing a claim
Step 1: Understand your policy
vehicle. If you use the other driver's company, you
Before you have a loss, sit down and carefully read
won't have a claim on your automobile policy and
your insurance policy. If you have any questions
you won't have to pay a deductible.
about what is or is not covered, call your agent or
company.
Step 6: Don't release insurers too early
Don't relieve your insurance company of its
Step 2: Exchange information
responsibility until the damages are settled to your
If you are involved in an accident, get the other
satisfaction. For example, revert to your insurance
driver's name, address, phone number, insurance
coverage if the other party's insurance company
carrier, and insurer's phone number. Be prepared
questions its policyholder's negligence or offers an
to give the same information about yourself to the
unacceptable settlement.
other driver. You can find insurers' telephone num-
bers on proof-of-insurance cards.
Step 7: Consider these settlement factors
· Bodily injuries: You may be entitled to a mon-
Step 3: Identify witnesses
etary settlement for injuries caused by another
Ask witnesses to the accident for their names and
liable party. It can take several days for some
phone numbers in case their account of the accident
injuries to become apparent.
is needed.
· Damages: The insurance company is responsible
to pay for the reasonable cost of repairs to your
Step 4: File an accident report
vehicle. An insurance adjuster will assess the
If the accident causes any injury or death, or
damage. Usually, insurance companies and auto
more than $1,500 damage to your vehicle or any
body shops negotiate disagreements about what
property, or more than $1,500 damage to any
should be repaired. If you disagree with their
vehicle and a vehicle is towed from the accident,
conclusions, you have the right to obtain another
Oregon law requires you to file an Oregon Accident
appraisal at any auto body shop.
and Insurance Report directly with DMV within
72 hours (three days). Accident report forms
· Appraisal clause: Most auto insurance policies
and detailed instructions are available at police
include an appraisal clause, which can be used to
departments, sheriff offices, DMV field offices, and
help settle disputes about physical damage claims
on DMV's Web site http:/ www.oregon.gov/ODOT/
between you and your insurance company. (The
DMV/driverid/accidentresp.shtml.
appraisal clause doesn't apply for claims you file
with the other party's insurance company.) If you
can't reach an agreement with your company, you
Step 5: Notify your insurer
or your insurer can initiate the appraisal clause.
Contact your insurance company about the acci-
Your appraiser and your insurer's appraiser then
dent as soon as possible. An insurance adjuster will
select an independent umpire to try to resolve the
determine who caused the accident. If the accident
dispute. Check your policy or ask your agent or
wasn't your fault, you can have either your insur-
insurance company for more information about the
ance company or the at-fault driver's insurance
appraisal clause.
company handle the repair or replacement of your
Dealing with total-loss claims
A total loss is declared when it would cost more to
Insurers must use a fair and reasonable method to
restore a vehicle to its original condition than to buy
determine the value of your car. They also must tell
a similar replacement vehicle on the market. An
you how they determined the value if you request
insurance company may provide reimbursement for
this information.
a vehicle that is a total loss by offering a comparable
vehicle in your local area, or by paying a cash settle-
ment based on your vehicle's fair market value.
6
Dealing with total-loss claims
There are several sources, usually available through
within 35 days of receiving payment if you can-
your local library, to help determine the fair mar-
not locate a comparable vehicle for the settlement
ket value of your vehicle and to locate comparable
amount. Your insurance company may either:
vehicles in your area:
· Pay the difference between the market value of
· CCC Information Services, Inc., www.cccis.com
your vehicle and the cost of a comparable vehicle
or (800) 621-8070
that you locate.
· ADP Autosource, www.adpclaims.com or
· Locate a comparable vehicle for you.
(800) 351-3133
· Offer a replacement vehicle of the same make and
· National Automobile Dealers Association's Used Car
year (or newer). It must be of similar body style,
Guide, www.nada.com
have similar options and mileage, and be
· Kel ey Blue Book, www.kbb.com
in as good or better overall condition than the
vehicle destroyed. You have the right to inspect
Finalize the settlement
the vehicle before accepting it.
Your claim is closed once you accept the insurance
· Initiate the appraisal clause in your policy.
payment or sign an insurance settlement form.
(See Appraisal clause, Page 6).
There is an exception for first-party claims (claims
The exception doesn't apply for third-party
you file with your insurance company). You can
claims (claims you file with the other party's
ask your insurance company to reopen your claim
insurance company).
Saving money on auto insurance
Before you buy
Discounts
Talk with your agent or insurance company about
You can save money on auto insurance by taking
insurance costs before you buy a car. Certain makes
advantage of discounts. Ask your agent or company
and models, especially sports cars, are higher risks
if you qualify for discounts for any of the fol owing:
for insurance companies and cost more to insure.
· You insure two or more cars on a policy.
Comparison shopping
· Your auto and home insurance are on the same
Ask several companies for quotes. By shopping
policy or with the same company.
around, you may find several hundred dollars' dif-
· Your child is under 25 and has good grades
ference between quotes. Be sure to compare identi-
in school.
cal coverages when comparing policies.
· Your child has completed a driver-education
course.
Coverages
· You've completed a defensive-driving course.
Drop collision coverage on cars that cost more to
repair than they are worth. For example, consider
· You're a mature driver between 50 and 65.
carrying only liability coverage for cars valued at
· Your vehicle has air bags, an anti-lock braking sys-
less than $1,000.
tem, other safety equipment, or anti-theft devices.
Increase your deductibles. Take the highest deduct-
· You're a low-mileage driver.
ible you can afford on collision and comprehensive
· You're in a carpool.
coverage.
· You haven't gotten any traffic tickets in three
years.
· You haven't been in any accidents in three years.
· You have a favorable credit history.
7
Saving money on auto insurance
Driving record
Check into discounts such as those listed on the
· Maintain a good driving record. Your premiums
previous page. If your young driver goes to school
are directly related to your driving record.
more than 100 miles away -- without a car -- you
· Under Oregon law, an insurance company can
may qualify for another discount.
use only the last three years of your driving record
Paying premiums
when deciding whether to issue or renew a policy
or determining your premium. If you've had an
You can save on service charges by paying premi-
accident or a violation, and your rates have gone up
ums in full rather than on a quarterly or month-to-
or your policy has been assigned to a nonstandard
month basis.
insurer, talk with your insurance agent or company.
Reviewing your policy
If it's been more than three years since your accident
Review your policy periodically and update cover-
or violation, you may qualify for a lower rate. If not,
age accordingly.
consider changing companies.
Notify your agent immediately if you move, sub-
· Take a defensive-driving course.
stantially reduce your annual mileage, sell your car,
Older drivers
change your marital status, or change the number of
Drivers 55 and older must be given a discount if
drivers in your household.
they complete a state-certified safe driving course.
Young singles on their own
Parents of teenagers
Avoid performance or "turbo cars." A turbo engine
If your teenagers don't own cars, make sure your
can add more than 10 percent to your premium.
insurer understands which cars they are going to be
driving and whether it will be occasional or princi-
pal use. If they do own cars, consider covering them
under your policy. Otherwise, they'll probably have
to pay higher premiums.
Auto-insurance questions & answers
Q: Why does my insurance cost more than my
If you told your insurance agent you have a perfect
agent said it would?
driving record, and you don't, your insurance com-
A:
pany will charge higher premiums than your agent
This is called a misquote. Determining your
quotes.
premium depends on many factors, includ-
ing where you live, the kind of car you drive, how
To avoid misquotes, provide accurate information
much you drive, how much coverage you want, your
about your driving record and any other facts affect-
driving record, and your age.
ing the cost of insurance, such as the make of your
If an error is made in reporting any of these facts,
car or how far you commute to work. Verify all
your rates won't be quoted correctly. Misquotes can
information before signing the application.
also happen if your agent makes a mistake in ap-
plying the company's rating system. Auto insurance
Q
: How does my driving record affect my
misquotes can happen when your application infor-
insurance premium?
mation differs from actual driving record.
Companies ask states' motor-vehicle divisions to
A
: The premium you pay is a direct reflection
verify the records of drivers they insure.
of your driving record for the past three
years. Insurance companies order driving records
from the Oregon DMV and from other states where
8
Auto-insurance questions & answers
you've been licensed. Statistics show that drivers
with tickets and accidents are more likely to have
Q: What happens if my loan was more than my
insurance company says my car was worth?
accidents than drivers with clean records.
Q:
A
: Sometimes the value of a car is less than the
Why is it harder to get insurance if drivers in
balance on your car loan. There can be sev-
my household have bad driving records?
eral reasons for this. Interest rate changes may have
increased the amount of your loan. Rebates may not
A: Many companies won't insure you if you
have applied to the purchase price, or poor mainte-
live with a relative who has a poor driving
nance of the auto may have reduced its value. The
record. If your teenager has a poor driving record,
insurance company bases its payments on the actual
you may have trouble getting a preferred rate
cash value (ACV) of the car, not the amount of your
because he or she is defined as an "insured" un-
loan. You may be able to purchase a special type of
der your policy. Some companies will exclude this
insurance, known as guaranteed auto protection
person by name from the insurance policy. Many
(GAP), when you buy a car. GAP insurance covers
companies won't insure anyone in the family unless
the difference between the ACV and your loan balance.
every driver in the household meets their requirements.
Q:
Q
: Why didn't I get a notice that my insurance
What do insurance companies consider when
policy was canceled?
they decide whether to cancel or not renew
policies?
A: Your company must send you notice at least
10 days in advance of canceling your policy
A: Insurance companies evaluate the risks
for nonpayment. If your policy has been canceled or
associated with each policyholder to de-
"non-renewed" for a reason other than nonpayment,
termine if you are a "good risk" or if your policy
the company must give you at least 30 days' advance
should be canceled or not renewed. Some of the
notice. An explanation of the reasons for the cancel-
areas insurance companies review:
lation or non-renewal must be part of or accompany
· Claims. Do you file claims frequently or for
the notice.
large amounts?
Under Oregon law, insurance companies must be
· Driving record: Do you have a bad driving record
able to prove notice was sent but not that you re-
(speeding, DUI, etc.)
ceived it. It's your responsibility to tell your insur-
· Credit history. Do you have bad credit? Have you
ance company if your address changes. Keep track
filed for bankruptcy?
of your payments.
Q: My car was "totaled." Why didn't my policy
Q
: What's the difference between comprehensive
pay what I think my car was worth?
and collision coverage?
A: Most auto insurance policies pay the actual
cash value (ACV) of a vehicle totaled in an
A: Comprehensive coverage typically covers
damage from fire, theft, explosion, glass
accident. The ACV is equal to the market value of an breakage, animal collision, and other incidents not
auto immediately before the accident.
covered by collision coverage. Collision is usually
Insurers must use a fair and reasonable method to
defined as colliding with another object or overturn-
determine the value of your car. They also must tell
ing. Most auto policies have lower deductibles for
you in writing that information about how they de-
comprehensive coverage than for collision coverage.
termined the value is available if you request it.
If you have an older car that may cost more to repair
than it's worth, consider the following to save money:
Tell the insurance company what you believe makes
your car worth more than the insurer is willing to
· Raise your deductibles.
pay you. It may come down to negotiations between
· Drop your collision or comprehensive coverage.
you and the insurance company. But remember, an
· Drop both your collision and comprehensive
insurance company won't compensate you for your
coverage.
car's sentimental value.
9
Using the price comparisons
Auto insurance costs vary widely among the more
The coverages limits in this comparison are the
than 200 companies doing business in Oregon. The
minimums required by Oregon law: They are not
premium comparison charts on the following pages
recommended levels of coverage. The coverage lim-
show how important it is to shop around for auto-
its quoted in this comparison:
mobile insurance.
· Bodily injury (BI) liability coverage of $25,000 per
The key to comparison shopping is to know what
person, $50,000 per occurrence (injury caused to
insurance coverage you need before you start and
other parties).
to find out how much the coverage will cost from a
· Property damage (PD) liability coverage of $10,000
number of insurers. You need to make sure that all
(damage caused to property belonging to others).
quotes are for the same amount of coverage. Large
variances in premiums may be attributable to differ-
· Personal injury protection (PIP) of $15,000 per
ent limits or deductibles.
person (no-fault).
For this guide, we asked the 25 largest auto insurers
· Uninsured motorist bodily injury (UMBI) cover-
in Oregon to quote annual premiums for four types
age of $25,000 per person and $50,000 per occur-
of drivers in seven cities. Participating companies
rence for bodily injury.
are listed in alphabetical order, beginning on Page
Although price is a major factor in choosing insurance,
11.
it's also important to look closely at policy provisions,
Please note that premiums are quoted as of Nov.
coverage limits, and the quality of service.
1, 2002, and changes are likely to have occurred
One source of information about the quality of ser-
since then. The quotes are included in this guide to
vice is the Consumer Guide to Oregon Insurance Com-
demonstrate that premiums can vary widely from
plaints, which annually rates insurers based on the
company to company.
number of consumer complaints to the Insurance
Also, please note that rate comparisons in this guide
Division. To request a copy, call (503) 947-7984 or
don't cover all situations. For specific information
(888) 877-4894 (toll-free in Oregon). The guide is also
about rates, contact individual insurance agents or
on our Web site, insurance.oregon.gov; click
companies.
on publications.
10
Price comparisons
Example 1
ay
Tire family
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Tom and Tammy Tire,
both 44, are married.
1. Allstate Indemnity
------------------------Not eligible ------------------------------
Tom drives a 2000
2. Allstate Property & Casualty
350
327
398
339
279
510
471
Toyota Camry (4 cyl.)
five miles each way
3. American Family Mutual
269
312
281
269
268
482
363
to work, five days a
4. American Standard of Wisconsin ------------------------Not eligible ------------------------------
week. Tammy drives
a 2000 Dodge Cara-
5. Country Mutual
395
449
441
395
357
724
545
van (6 cyl.) 10 miles
6. Farmers of Oregon
384
399
384
408
303
683
518
each way to work,
five days a week.
7. GEICO General
476
486
504
476
415
638
538
Neither has had an
8. Liberty Mutual Fire
333
377
356
333
323
506
429
accident or moving
9. Mid-Century
------------------------Not eligible ------------------------------
violation in the past
three years. Their old- 10. Mutual of Enumclaw
472
389
482
394
296
716
482
est of three children, 11. Nationwide Mutual
393
410
384
393
358
548
495
16-year-old Ty, just
got his driver license. 12. Nationwide Mutual Fire
364
379
355
364
332
506
458
He has had no tickets 13. North Pacific
392
414
399
334
298
565
420
or accidents, has a 3.0
grade point average, 14. Oregon Mutual
480
465
469
465
438
533
475
and only drives oc-
15. Progressive Halcyon
398
418
412
401
384
519
466
casionally.
16. Progressive Northern
276
327
318
287
259
524
407
17. State Farm Fire & Casualty
477
501
512
477
463
739
623
18. State Farm Mutual Auto
470
494
505
470
457
728
614
19. United Services Auto Assoc.
420
454
454
431
393
551
545
20. USAA Casualty
434
469
469
445
406
569
563
21. Western Protectors Preferred
379
369
372
369
350
418
377
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
11
Price comparisons
Example 2
ay
Bill & Barbara
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Bumper
1. Allstate Indemnity
------------------------Not eligible ------------------------------
Bil and Barbara Bum-
per, both 35, are mar- 2. Allstate Property & Casualty
216
203
245
212
176
314
290
ried. Bil drives a 2001 3. American Family Mutual
180
207
187
180
179
318
240
Ford Explorer (6 cyl.)
two miles each way
4. American Standard of Wisconsin ------------------------Not eligible ------------------------------
to work, five days
5. Country Mutual
190
215
211
190
173
341
259
a week. He hasn't
had an accident or
6. Farmers of Oregon
302
311
299
313
251
520
407
moving violation in
7. GEICO General
262
267
277
262
230
348
295
the past three years.
Barbara drives a 1998 8. Liberty Mutual Fire
243 274
259
243
236
364
310
Dodge Neon (4 cyl.)
9. Mid-Century
------------------------Not eligible ------------------------------
five miles each way
10. Mutual of Enumclaw
346
287
354
289
221
519
354
to work, five days a
week. She hasn't had 11. Nationwide Mutual
260
270
254
260
237
358
324
an accident in the
12. Nationwide Mutual Fire
241
251
235
241
220
331
301
past three years, but
was cited one year
13. North Pacific
229
241
235
196
175
328
246
ago for speeding (45 14. Oregon Mutual
308
293
297
293
266
361
303
mph in a 30-mph
zone).
15. Progressive Halcyon
451
475
470
453
437
592
531
16. Progressive Northern
309
367
358
320
287
586
458
17. State Farm Fire & Casualty
320
336
343
320
311
490
415
18. State Farm Mutual Auto
282
296
303
282
274
434
367
19. United Services Auto Assoc.
257
276
275
263
242
328
325
20. USAA Casualty
256
274
273
261
241
325
322
21. Western Protectors
------------------------Not eligible ------------------------------
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
12
Price comparisons
Example 3
ay
Kyle Klutch
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Kyle is a single male,
age 23. He drives
1. Allstate Indemnity
820
732
941
839
654
1378 1192
a 1999 GMC Sierra
2. Allstate Property & Casualty
------------------------Not eligible ------------------------------
1500 (1/2 ton, 8 cyl.)
10 miles each way
3. American Family Mutual
------------------------Not eligible ------------------------------
to work, five days a
4. American Standard of Wisconsin 844
928
867
844
842
1260 1028
week. He's had two
speeding tickets
5. Country Mutual
------------------------Not eligible ------------------------------
within the past two
6. Farmers of Oregon
------------------------Not eligible ------------------------------
years (both 75 mph
in a 55-mph zone)
7. GEICO General
------------------------Not eligible ------------------------------
and was cited one
8. Liberty Mutual Fire
------------------------Not eligible ------------------------------
year ago for driving
9. Mid-Century
975 1023
949
1032
691
1682 1251
under the influence
of alcohol (DUI). He
10. Mutual of Enumclaw
------------------------Not eligible ------------------------------
has had no other
11. Nationwide Mutual
------------------------Not eligible ------------------------------
moving violations or
accidents, and there
12. Nationwide Mutual Fire
------------------------Not eligible ------------------------------
are no other drivers
13. North Pacific
------------------------Not eligible ------------------------------
in the household.
Kyle needs an
14. Oregon Mutual
------------------------Not eligible ------------------------------
SR-22 filing,
15. Progressive Halcyon
383
434
425
387
350
678
547
which provides
proof of financial
16. Progressive Northern
307
364
355
315
285
574
449
responsibility.
17. State Farm Fire & Casualty
------------------------Not eligible ------------------------------
18. State Farm Mutual Auto
------------------------Not eligible ------------------------------
19. United Services Auto Assoc.
------------------------Not eligible ------------------------------
20. USAA Casualty
------------------------Not eligible ------------------------------
21. Western Protectors
------------------------Not eligible ------------------------------
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
13
Price comparisons
Example 4
ay
Lloyd & Linda
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Lugnut
Lloyd and Linda,
1. Allstate Indemnity
------------------------Not eligible ------------------------------
both 67, are married. 2. Allstate Property & Casualty
111
104
125
108
90
161
149
They drive a 1999
3. American Family Mutual
78
90
82
78
78
138
104
Buick Century four-
door sedan (6 cyl.)
4. American Standard of Wisconsin ------------------------Not eligible ------------------------------
for pleasure. Their
5. Country Mutual
128
145
142
128
116
231
175
annual mileage is less
than 7,500. They have 6. Farmers of Oregon
95
95
102
101
99
181
146
had no accidents or
7. GEICO General
127
130
134
127
112
169
143
moving violations in
the past three years.
8. Liberty Mutual Fire
128
144
137
128
125
191
163
9. Mid-Century
------------------------Not eligible ------------------------------
10. Mutual of Enumclaw
172
143
176
145
110
259
176
11. Nationwide Mutual
138
144
135
138
126
190
173
12. Nationwide Mutual Fire
128
133
125
128
117
177
160
13. North Pacific
123
130
126
105
94
177
132
14. Oregon Mutual
150
136
140
135
110
202
146
15. Progressive Halcyon
227
252
247
229
211
374
309
16. Progressive Northern
183
217
212
188
169
346
270
17. State Farm Fire & Casualty
128
134
137
128
124
195
165
18. State Farm Mutual Auto
122
128
130
122
119
186
158
19. United Services Auto Assoc.
122
130
130
124
114
154
153
20. USAA Casualty
121
129
129
124
114
153
151
21. Western Protectors
122
110
114
110
90
165
119
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
14
Company information
The following companies provided additional information about their rate quotes.
1. Allstate Indemnity Co.
Example 2: Multiple-vehicle, airbag, and Auto and
Credit scoring: Allstate uses insurance scores, along
Home Premium Advantage discounts were applied
with other policy information, in the underwriting
to both vehicles.
and premium-determination processes.
Example 4: The Lugnut family received airbag and
Examples 1, 2, and 4: These risks would be written
Auto and Home Premium Advantage discounts.
in Allstate Property & Casualty Co., not Allstate
Indemnity Co.
4. American Standard Insurance Co.
Example 3: A driving record surcharge, certified
of Wisconsin
risk surcharge, anti-lock brake discount, and
Credit scoring: American Standard does not use
passive restraint discount have been applied.
credit scoring.
Examples 1, 2, and 4: These risks would be written
2. Allstate Property & Casualty Ins. Co.
in American Family Mutual Insurance Co., not in
Credit scoring: Allstate uses insurance scores, along
American Standard Insurance Co. of Wisconsin.
with other policy information, in the underwriting
and premium-determination processes.
Example 3: An airbag discount was applied.
Example 1: Sixteen-year-old Ty is assigned as a
restricted operator to the 2000 Dodge Caravan. A
5. Country Mutual Insurance Co.
good-student discount and an inexperienced-opera-
Credit scoring: Country Mutual uses credit scores
tor surcharge have been applied to the Caravan. A
for new business underwriting eligibility in con-
passive restraint discount, premier discount, and
junction with other criteria, as well as for rating.
Tier Factors Discount were applied to both vehicles.
Credit scores are only used on renewal business at
the insured's request.
Example 2: The 2001 Ford Explorer received
an anti-lock brake discount. A passive restraint dis-
Other notes:
count and Tier Factors Discount were applied
Example 1: The Tire family has been given our
to both vehicles.
multi-line policy discount and the Select Customer
Discount. We assumed that Ty Tire has maintained
Example 3: This risk would be written in Allstate
his 3.0 grade point average for at least two semes-
Indemnity Co., not Allstate Property & Casualty
ters.
Insurance Co.
Example 2: Bill and Barbara Bumper have been
Example 4: A passive restraint discount, premier
given our multi-line policy discount and the Select
discount, anti-lock brake discount, and Tier Factors
Customer Discount.
Discount were applied.
Example 4: Lloyd and Linda Lugnut have been
given our multi-line policy discount. We assumed
3. American Family Mutual Insurance Co.
the Lugnuts have completed an approved course of
Credit scoring: American Family does not use
traffic safety, and have given them our defensive-
credit scoring.
driving discount.
Example 1: The Tire Family received multiple-vehi-
cle and airbag discounts for both vehicles. The Auto
and Home Premium Advantage was applied to the
2000 Toyota. Ty was rated as an occasional operator
on the 2000 Dodge and a good-student discount was
applied.
15
Company information
6. Farmers Insurance Co. of Oregon
9. Mid-Century Insurance Co.
Credit scoring: Farmers Insurance Co. of Oregon
Credit scoring: Please see Farmers Insurance Co.
and Mid-Century Insurance Co. use credit infor-
of Oregon.
mation in the rating process. We use an insurance
bureau score developed by Fair, Isaac and Co., Inc.
Other notes:
The Farmers Auto Risk Assessment (FARA) code is
Example 3: An additional $15 fee has been added
determined from scores received from Fair Isaac.
to the quoted premium for the Financial Responsi-
Associated discounts are given based on a FARA
bility Filing (SR-22) required in this example.
code.
Insurance bureau scores are not used to make
10. Mutual of Enumclaw
acceptability decisions. These scores are used to
Credit scoring: Mutual of Enumclaw uses credit
determine premiums, but are never used as the
scoring in the underwriting of new business.
sole source to determine premiums. Many other
traditional pricing factors still are used in conjunc-
tion with insurance bureau scores, (territory, vehicle
11. Nationwide Mutual Insurance Co. and
type, driving record, etc.).
12. Nationwide Mutual Fire Insurance Co.
Credit scoring: Nationwide uses credit scores as a
Farmers and Mid-Century currently offer several
factor when determining whether to accept or de-
FARA discounts in Oregon. Customers may be eli-
cline a risk. Nationwide does not use credit scores to
gible for a FARA discount ranging from 4 to 36 per-
determine rates in Oregon.
cent. The FARA discount was introduced in Oregon
in March 2000.
13. North Pacific Insurance Co.
Other notes:
Credit scoring: North Pacific does not use credit
Example 3: Kyle Klutch would be quoted in Mid-
scoring.
Century Insurance Co., not Farmers Insurance Co. of
Oregon.
14. Oregon Mutual Insurance Co.
7. GEICO General
Credit scoring: We require a minimum score for
new business eligibility. Credit history is used in the
Credit scoring: GEICO uses credit in the underwrit-
underwriting renewal process to qualify policyhold-
ing process for new business.
ers who may not otherwise be renewed. Credit his-
Other notes:
tory also is used to qualify reinstatement of policies
Example 3: Kyle Klutch is not eligible for GEICO
that are canceled for nonpayment. A positive score is
General, but would qualify for one of the other
often the deciding factor when determining whether
GEICO companies.
to allow reinstatement. Credit history is not a factor
in pricing or rating decisions. There are no discounts
associated with a consumer's credit history.
8. Liberty Mutual Fire Insurance Co.
Other notes:
Credit scoring: Liberty Mutual Fire Insurance Co.
Example 1: The Tire family received dual air bag,
uses credit scores, in association with other charac-
anti-lock brake, and multi-car discounts. The 16-
teristics, in the underwriting and rating of new poli-
year-old son was quoted on the higher-rated vehicle
cies and the underwriting of renewal business.
(Toyota) and was given a good-student discount.
Other notes:
Example 2: The Bumper family received dual air
Example 1: Homeowner and good-student discounts
bag, anti-lock brake, and multi-car discounts.
were applied.
Example 4: The Lugnut family received dual
Examples 2 and 4: A homeowner discount was ap-
air bag, anti-lock brake, and defensive-driving dis-
plied.
counts for mature drivers.
16
Company information
15. Progressive Halcyon Insurance Co.
Other notes:
Credit scoring: Financial responsibility is part of
Example 1: We assumed that Ty occasionally
the initial underwriting to become a Progressive
drives the Camry and qualifies for a good student
policyholder. In no case is financial responsibil-
discount. We didn't assume that the drivers qualify
ity used to deny coverage, cancel, or non-renew a
for a multiple-line discount, which would lower
policy. Once a customer has been with Progressive
their premiums.
for two years, we may review the policy and reas-
sess financial responsibility in order to determine if
Examples 2 and 4: We didn't assume that the driv-
the policy is eligible for a better underwriting group.
ers qualify for a multiple-line discount, which
However, we will not make changes that result in a
would lower their premiums.
worse underwriting group.
18. State Farm Mutual Auto Insurance Co.
Other notes:
Example 2: Rates were based on a 2001 Ford
Credit scoring: Credit scores are a component of our
Explorer XLT (6 cyl.)
underwriting scoring model, which we use for de-
termining underwriting eligibility of new business.
Example: 3: Kyle Klutch was rated with
We do not use it in our policy-renewal process.
$50,000/$100,000 liability limits due to the DUI. A
$15 SR-22 filing fee is included in the rates, which
Other notes:
are based on the DUI occurring one year ago.
Example 1: We assumed that Ty qualifies for a
good student discount and occasionally drives the
Camry, that the Dodge Caravan qualifies for a new
16. Progressive Northern Insurance Co.
business discount, and that both vehicles are driven
Credit scoring: Please see Progressive Halcyon
more than 7,500 miles annually. We didn't assume
Insurance Co.
the Tire family qualified for a multiple-line discount,
which would lower their premiums.
Other notes:
Example 2: Rates were based on a 2001 Ford
Example 2: We assumed Barbara drives a 1998
Explorer XLT 4 X 2 model.
Dodge Neon Highline 2-door sedan and that both
vehicles are driven more than 7,500 miles annu-
Example: 3: Kyle Klutch was rated with $50,000-
ally. We didn't assume the Bumpers qualified for
$100,000 liability limits due to the DUI. A $15 SR-22
a multiple-line discount, which would lower their
filing fee is included in the rates, which are based on
premiums.
the DUI occurring one year ago. Rates also are based
on a 1999 GMC Sierra 1500 4 X 2.
Example 4: We assumed that all drivers qualify for
a new-business discount. We didn't assume the Lug-
nuts qualified for a multiple-line discount, which
17. State Farm Fire & Casualty Co.
would lower their premiums.
Credit scoring: Credit scores are a component of
our underwriting scoring model, which we use for
19. United Services Automobile Association
determining underwriting eligibility of new busi-
ness. We do not use it in our policy-renewal process.
(USAA) and 20. USAA Casualty Insurance
Co. (USAA-CIC))
Credit scoring: A credit score is only ordered on
new business and is considered along with other
risk factors to determine tier placement.
17
Company information
21. Western Protectors Insurance, Preferred
Other notes:
Customer Program
Example 1: The Tire family received dual-air-bag,
Credit scoring: We require a minimum score for
anti-lock brakes, and multi-car discounts. Ty was
new business eligibility. Credit history is used in
quoted on the higher-rated vehicle (Toyota) and was
the underwriting renewal process to qualify policy-
given a good-student discount.
holders who may not otherwise be renewed. Credit
Example 4: The Lugnut family received dual-air-
history is used to qualify reinstatement of policies
bag, anti-lock-brake, and defensive-driving
that are canceled for nonpayment. A positive score is
discounts for mature drivers.
often the deciding factor when determining whether
to allow reinstatement. An insured with tickets and/
or losses may qualify for insurance if he or she has a
positive credit history. Credit history is not a factor
in pricing or rating decisions. There are no discounts
associated with credit history.
18
Glossary
Actual cash value (ACV)
Financial responsibility law
The market value of your car.
If a judge convicts you of driving uninsured, you
will need to file proof of future financial responsibil-
Adjuster
ity with Oregon Driver and Motor Vehicle Services
A representative of an insurance company whose
(DMV) for three years or face suspension of your
job is to determine and "adjust" the amount of a loss
driving privileges. This is in addition to any fines
and decide how much the company will pay for it.
you must pay. Your insurance company can make a
Binder
financial responsibility filing for you by sending an
SR-22 insurance certificate to the DMV to show that
An acknowledgment that the insurance for which
you have liability insurance.
you applied is in force, whether or not you have paid
for it or received a policy.
Liability coverage
Cancellation
This coverage pays for losses to other people and
If you don't pay your premiums, an insurance com-
their property caused by negligence on your part.
pany can cancel your personal auto policy by giving
Preferred risk
10 days' written notice. The company is required
to give you 30 days' written notice if it is canceling
A person less likely than the average person to make
your policy for any other reason.
a claim. A preferred risk usually qualifies
for a lower premium.
Collision coverage
Proof of loss
This coverage pays for physical damage caused
when your car collides with another car or object
An estimate of damages you provide to an insur-
or if it overturns.
ance company to support your claim. Insurance
companies often use this document to figure how
Comprehensive coverage
much they will pay.
This coverage pays for damage to your vehicle not
SR-22
covered by collision coverage, such as fire, theft, or
vandalism.
An SR-22 is a certificate from an Oregon-licensed
insurance company certifying that you have pur-
Credit history
chased motor vehicle liability insurance as required
Many personal auto and homeowner insurance
by the state's financial responsibility law.
companies look at consumer credit information
to decide whether to issue or renew an insurance
Underwriting
policy and how much to charge.
The basic role of an insurance company: examining
and accepting or rejecting risks, and classifying the
Deductible
ones that are accepted to determine premiums.
The deductible is the amount you agree to pay on
each loss before your insurance company pays. Gen-
Uninsured motorist bodily injury (UMBI) and
erally, the larger your deductible, the smaller your
Underinsured motorist (UIM) coverage
premium.
Coverage for bodily injury to you and your pas-
sengers caused by an uninsured or underinsured
Diminution of value
driver.
The difference between a vehicle's value before it
was in an accident and after it has been repaired.
Uninsured motorist property damage
coverage (UMPD)
Coverage for damage to your auto caused by an un-
insured driver, "phantom vehicle," or a hit-and-run
driver.
19
Insurance publications
A variety of consumer publications are available
· Ayuda Gratuita con Medicare y Otros Seguros
from the Oregon Insurance Division. You may view
para la Salud
these publications on our Web site, or request a copy
Una lista de organizaciones locales que le ayudan
by:
a beneficiarios de Medicare hacer mejores decisio-
nes en cuanto a seguro para la salud.
Mail:
Publications
Oregon Insurance Division
· Oregon Insurance Rights for Consumers
P.O. Box 14480
Describes some important consumer rights that
Salem, OR 97309-0405
are protected by law.
Telephone: (503) 947-7984 or
· Oregon Consumer Guide to Medigap and
(888) 877-4894 (toll-free in Oregon)
Medicare + Choice Plans
E-mail:
dcbs.insmail
Compares Medicare supplement policies and
explains Medicare + Choice options.
There is no charge for copies of publications,
unless otherwise noted. Publications are also
· Oregon Insurance Division - Protecting the
available on our Web site, insurance.oregon.gov;
Insurance-buying Public
click on publications.
An overview of services provided by the
Insurance Division and where to call for
· Consumer Guide to Auto Insurance
answers to common insurance questions.
Compares auto insurance premiums and
provides money-saving tips for drivers.
· La División de Aseguradoras - Protegiendo al
Público en la Compra de Seguros
· Guía Básica de Oregon para seguro de autos
Una sintesis de servicios provistos por la
Explica los requisitos en Oregon para seguro de
División de Seguros y a donde llamar para ob-
autos.
tener respuestas acerca de comunes preguntas de
seguros.
· Consumer Guide to Health Insurance
Provides an overview of health insurance and
· A Shopper's Guide to Long-Term-Care Insurance
your health-care rights.
Provides an overview of long-term-care insurance,
including costs and benefits. Published by the Na-
· Consumer Guide to Homeowner and
tional Association of Insurance Commissioners.
Tenant Insurance
Compares premiums and provides money-saving
· Oregon Long-Term-Care Insurance
tips for homeowners and renters.
Describes long-term-care insurance and lists pro-
viders doing business in Oregon.
· Consumer Guide to Oregon Insurance Complaints
Ranks insurers from best to worst, based on the
number of consumer complaints to the Insurance
Division.
· Free Help with Medicare and Other Health
Insurance
Lists local organizations that help Medicare
beneficiaries make better health-insurance
decisions. Identifies volunteer assistance and
volunteer opportunities.
20
In compliance with the Americans with Disabilities Act
(ADA), this publication is available in alternative formats.
Call (503) 947-7980 or 947-7280 (TTY).
Information in this publication is in the public domain and
may be reprinted without permission.
Insurance Division
P.O. Box 14480
Salem, Oregon 97309-0405
440-2085 (4/05/COM)
Auto Insurance
Oregon Insurance Division
About the Oregon Insurance Division
The mission of the Insurance Division is to administer the Insurance Code for the protection of the insurance-
buying public while supporting a positive business climate.
We ensure the financial soundness of insurers, the availability and affordability of insurance, and the fair treat-
ment of consumers by doing the following:
· Licensing insurance companies and monitoring their solvency
· Reviewing insurance products and premium rates for compliance
· Licensing insurance agents and consultants
· Resolving consumer complaints
· Investigating and penalizing companies and agents for violations of insurance law
· Monitoring the marketplace conduct of insurers and agents
· Educating the public about insurance issues
· Advocating reforms that protect the insurance-buying public
Call us for help
Consumer Protection Section -- (503) 947-7984 or (888) 877-4894 (toll-free in Oregon)
You have the right to seek assistance from the Insurance Division at any time by filing a formal complaint
against an insurance company or agent. A copy of the complaint is sent to the insurance company. A re-
sponse from the insurance company or agent must be received at the Insurance Division within 21 days. If
the response is not adequate, a consumer advocate will work with you and the insurance company to try to
resolve the problem. The Insurance Division will forward a copy of the insurance company's response to
you. If a law has been broken, the matter may be referred to the Insurance Division's Investigations Unit.
Company Section -- (503) 947-7982
To find out if a company is authorized to sell insurance in Oregon, call our Company Section or visit our
Web site, insurance.oregon.gov; click on company information.
Agent Licensing Unit -- (503) 947-7981
To find out if your insurance agent is licensed to do business in Oregon, call our Agent Licensing Unit or
visit our Web site, insurance.oregon.gov; click on agent information.
Senior Health Insurance Benefits Assistance (SHIBA) -- (503) 947-7984 or (800) 722-4134
(toll-free in Oregon)
Call SHIBA for information about Medicare and other health insurance for Medicare-eligible people, or visit
SHIBA's Web site, oregonshiba.org.
Visit our Web site
The Oregon Insurance Division's Web site includes all of our publications as well as other useful information
for consumers. You can file a complaint against an insurance company or agent, check to see if an insurer is
authorized to do business in Oregon, and find out if your insurance agent is licensed in Oregon. Our Web ad-
dress: insurance.oregon.gov.
Table of contents
Choosing an insurer ........................................................................................................2
Auto insurance basics ..................................................................................................2-4
Underwriting standards ..............................................................................................................2
Credit scoring ...............................................................................................................................2
Rating categories ..........................................................................................................................3
Types of coverage .........................................................................................................................3
Extra liability coverage ................................................................................................................4
Your right to be treated fairly .....................................................................................................4
What to do if you can't get coverage ..........................................................................................4
A safety net for consumers .........................................................................................................4
Oregon requirements ......................................................................................................5
Required coverages ......................................................................................................................5
Proof of insurance ........................................................................................................................5
Filing a claim ....................................................................................................................6
Dealing with total-loss claims ................................................................................... 6-7
Saving money on auto insurance .............................................................................. 7-8
Auto-insurance questions & answers .......................................................................8-9
Price comparisons .................................................................................................... 10-14
Using the price comparisons ....................................................................................................10
Example 1 -- Tire family ...........................................................................................................11
Example 2 -- Bill & Barbara Bumper .......................................................................................12
Example 3 -- Kyle Klutch ..........................................................................................................13
Example 4 -- Lloyd & Linda Lugnut .......................................................................................14
Company information ............................................................................................. 15-18
Glossary ...........................................................................................................................19
Insurance publications ................................................................................................. 20
1
Choosing an insurer
Auto insurance helps protect you and your family
companies. Companies may charge a fee for these
from losses resulting from motor vehicle accidents.
services.
Oregon law requires every car to be covered by
A.M. Best Company
automobile insurance.
(908) 439-2200
The cost for coverage varies widely among
www.ambest.com
companies doing business in Oregon. That's why it's
Fitch, Inc.
important to shop around when choosing an insur-
(800) 853-4824
ance company.
www.fitchratings.com
This booklet can help you make an informed deci-
Moody's Investor Services
sion. It includes information about what kinds of
(212) 553-0377
coverage are required, how to shop for insurance,
www.moodys.com
and tips to hold down your costs. It also allows you
to compare rates for the major auto insurance com-
Standard & Poor's Rating Information Services
panies doing business in Oregon.
(212) 438-2400
www.standardandpoors.com
The rate comparisons in this booklet are designed
to be used as a guide and don't cover all situations.
Weiss Ratings, Inc.
For specific information about rates, you'll need to
(800) 289-9222
contact individual agents or companies.
www.weissratings.com
Comparison shopping takes a little more time, but it
One source of information about how companies
can save you money!
treat their policyholders is the Consumer Guide to
Oregon Insurance Complaints, which annually ranks
However, cost is just one factor to consider when
insurers from best to worst based on the number of
choosing an insurance company. It's also important
consumer complaints received by the Insurance Di-
to look at the company's financial condition and
vision. To request a copy, call (503) 947-7984 or (888)
how it treats its policyholders.
877-4894 (toll-free in Oregon). The guide is also on
A company's financial information is available
our Web site, insurance.oregon.gov; click on publi-
from the following organizations that rate insurance
cations.
Auto insurance basics
Underwriting standards
Credit scoring
Underwriting standards are rules insurance compa-
Many insurance companies look at a consumer's
nies use to decide whether to insure you. A compa-
credit history to decide whether to issue or renew
ny may reject your application for coverage if your
an auto or home insurance policy or how much to
circumstances do not meet the company's under-
charge. This practice is known as credit scoring or
writing standards or risk factors. Drivers with the
insurance scoring.
lowest risk factors are least likely to have a claim, so
they receive the lowest rates for insurance.
Insurance scoring has been controversial, and a
number of states, including Oregon, have placed
Insurance companies typically review the following
limits on its use. In Oregon, insurers can't use a
when deciding whether to insure you:
policyholder's credit information to raise premiums.
· driving record
Also, the law prohibits insurers from canceling or
· car make and model
refusing to renew existing policies because of credit
history problems.
· prior insurance coverage
Insurers can use credit information when deciding
· consumer credit history
whether to issue a new policy, but only if they can
2
Auto insurance basics
document that it helps them predict future claim
ers with little experience, drivers with histories of
costs and price their products fairly. At the same
tickets or accidents, drivers with poor premium-
time, they must demonstrate that credit informa-
payment records, and drivers with convictions for
tion is used as part of an evaluation system that also
driving recklessly or under the influence of alcohol
relies on other relevant factors.
or other drugs.
Oregon insurers and agents must tel consumers how
the company uses credit information before running
Types of coverage
credit checks. If a company uses credit information
When you purchase an auto insurance policy, you're
to prescreen applicants, the company must notify
really buying several types of coverage. There are
you of this before running a credit check.
seven basic types of coverage:
If an insurer uses credit information to make an "ad-
· Bodily injury liability coverage pays for dam-
verse" decision, such as not to offer the best rate or
ages other people incur if you or someone you
not to offer a policy, the insurer must give you spe-
allow to drive your car causes an auto accident.
cific reasons for the adverse action. You have a right
Examples of damages include medical expenses,
to a free copy of your credit report from the credit
rehabilitation, funeral costs, settlement of law-
bureau. If you find an error in your credit report and
suits, and legal expenses.
arrange with the credit bureau to correct it, you can
ask the insurer to reconsider
· Property damage liability coverage pays for
damage to other people's property if you or
Credit information is available from three credit
someone you let drive your car causes an auto
bureaus:
accident. It usually pays for repair or actual cash
Equifax --
value (ACV) of others' property and your legal
www.credit.equifax.com or (800) 685-1111
expenses.
Experian --
· Personal injury protection (PIP) coverage pays
www.experian.com or (888) 397-3742
for medical, rehabilitation, funeral, and child-
Trans Union --
care expenses as well as for loss of earnings and
www.transunion.com or (800) 888-4213
in-home assistance if you and your passengers
If there are mistakes, ask the credit bureau to correct
are injured in an accident, regardless of who is at
the information.
fault.
· Uninsured motorist bodily injury coverage pays
Rating categories
medical, rehabilitation, and funeral expenses, loss
of earnings, and other damages if you or your
If you are approved for coverage, the insurance com-
family are involved in a vehicle, bicycle, or pedes-
pany wil place you in one of three basic categories of
trian accident caused by an uninsured motorist or
drivers: preferred, standard, or nonstandard.
a hit-and-run driver.
Preferred: This category is for drivers considered the
· Uninsured motorist property damage coverage
best risks, which usually means the safest drivers.
pays for damage to your auto caused by an un-
Preferred drivers have maintained clean driving
insured driver. This optional coverage generally
records for the past three years and pay the lowest
duplicates your collision coverage, but may be a
rates.
good buy if you have a high deductible on your
Standard: This category is for drivers considered
collision coverage or don't have collision coverage.
moderate risks. Rates for standard drivers are higher
· Collision coverage pays for repairing your vehicle
than those for preferred drivers. People in this cat-
in a collision or rollover.
egory usually drive "family" cars and have reason-
ably clean driving records.
· Comprehensive coverage pays for damage to
your vehicle resulting from theft, vandalism,
Nonstandard: This category is for drivers considered
windstorms, fire, hail, etc.
high risk. They pay the highest rates for insurance.
This category may include drivers under 25, driv-
3
Auto insurance basics
Extra liability coverage
What to do if you
You can buy a separate personal umbrella policy
can't get coverage
to provide extra liability protection if you are sued.
An umbrella policy benefit will start paying when
If you are an individual or company having difficulty
your other policy's liability limits are exhausted. For
buying automobile liability insurance, you may qual-
example, let's say you lose control of your car and
ify for coverage under the assigned risk pool through
cause an accident that kills one person, seriously
the Automobile Insurance Plan of Oregon.
injures four others, and damages seven vehicles and
Additional information or assistance can be
one residence. The liability damages sustained in
obtained by contacting your insurance agent or bro-
this accident are likely to exhaust the limits of your
ker or Western Association Automobile
auto policy. A personal umbrella policy provides ad-
Insurance Plans. P.O. Box 7917, San Francisco, CA
ditional liability protection.
97104, (800) 227-4659.
Your right to be treated fairly
A safety net for consumers
An insurance company cannot deny, refuse to re-
Most states, including Oregon, have a safety net to
new, limit, or charge more for coverage because of
protect insurance consumers from financial loss if
your race, color, religion, or national origin.
an insurance company becomes insolvent and is
A company also cannot deny, refuse to renew, limit
unable to pay claims. Oregon's safety net is called
or charge more for coverage because of your age,
the Oregon Insurance Guaranty Association. The
gender, marital status, disability, or partial disability
association was established by state law and is gen-
unless the refusal, limitation, or higher rate is "based
erally composed of licensed insurance companies
on sound underwriting or actuarial principles."
doing business in the state. It pays covered claims
of Oregon policyholders and other claimants up to
In addition, a company cannot unfairly discriminate
$300,000 if an Oregon-licensed insurance company
between individuals of the same (rate) class and
becomes insolvent. Claims are paid according to the
essentially the same hazard (risk) in its rates, policy
terms of the original insurance policy, and the asso-
terms, benefits or in any other manner unless the
ciation won't pay any claim the insurance company
refusal, limitation, or higher rate is "based on sound
would not have paid.
actuarial principles."
4
Oregon requirements
Required coverages
Funeral expenses: You will be paid for reasonable
Oregon law requires every vehicle to be covered by
and necessary funeral expenses within one year
auto insurance. Nevertheless, millions of dollars in
of the date of injury up to a maximum benefit of
damage is caused each year by uninsured drivers.
$2,500.
This includes damage to vehicles and medical care
Oregon law and your insurance policy al ow PIP
for those injured in accidents.
benefit disputes to be resolved by arbitration as long
Oregon's mandatory-insurance law requires that
as both parties agree at the time of the dispute.
drivers have at least these minimum coverages:
Know your PIP limit. Review this coverage care-
fully and consider raising your limit.
· Bodily injury (BI) liability
$25,000 per person, $50,000 per accident for bodily
· Uninsured motorist bodily injury
injury to others.
(UMBI) coverage
· Property damage (PD) liability
$25,000 per person, $50,000 per accident for bodily
injury to you and your passengers
$10,000 per accident for damage to the property of
caused by an uninsured driver.
others.
UMBI coverage requires your insurance company
· Personal injury protection (PIP)
to pay all expenses that would normally be paid
PIP is Oregon's version of no-fault insurance. It al-
by the other person's company if you are hurt by
lows you and your passengers, regardless of who
an uninsured motorist.
caused an accident, to have insurance coverage
Consider increasing this coverage on your policy,
for "reasonable and necessary" medical, dental,
because an uninsured motorist probably cannot
hospital, surgical, ambulance, and prosthetic ser-
compensate you for your losses.
vices incurred within one year after the date of an
injury up to a maximum of $15,000.
Remember, these are the minimum coverages
required by Oregon law, not levels of coverage
In Oregon, minimum PIP benefits include limited
recommended by the Insurance Division.
coverage for loss of earnings, funeral expenses,
essential services, and child care.
Proof of insurance
Medical services: Treatment is considered rea-
sonable and necessary unless a provider receives
Oregon law requires drivers to carry proof of liabil-
a denial notice within 60 calendar days of claim
ity insurance. The law also requires your insurance
notice. After that, the burden of proving that
company to send you an insurance card that shows
treatment was not reasonable and necessary is
the effective date and expiration date of your policy.
on the insurance company.
Keep this card in your vehicle at al times.
Loss of earnings: This benefit is available if your
Driving without liability insurance could result
injury prevents you from returning to work. It
in fines, suspension of driving privileges, and im-
begins on the 14th day of your disability. You re-
pounding of your vehicle.
ceive up to 70 percent of wages up to a maximum
If a judge convicts you of driving uninsured, you
benefit of $1,250 a month for 52 weeks.
will have to file proof of financial responsibility
Essential services: If you are not employed, you
with the Driver and Motor Vehicle Services (DMV)
are entitled to reimbursement of reasonably in-
for three years or face suspension of your license.
curred expenses for the essential services that you
This is in addition to any fines you must pay.
would normally perform. You will receive up to
$30 a day for up to 52 weeks. This benefit begins
on the 14th day of disability.
5
Filing a claim
Step 1: Understand your policy
vehicle. If you use the other driver's company, you
Before you have a loss, sit down and carefully read
won't have a claim on your automobile policy and
your insurance policy. If you have any questions
you won't have to pay a deductible.
about what is or is not covered, call your agent or
company.
Step 6: Don't release insurers too early
Don't relieve your insurance company of its
Step 2: Exchange information
responsibility until the damages are settled to your
If you are involved in an accident, get the other
satisfaction. For example, revert to your insurance
driver's name, address, phone number, insurance
coverage if the other party's insurance company
carrier, and insurer's phone number. Be prepared
questions its policyholder's negligence or offers an
to give the same information about yourself to the
unacceptable settlement.
other driver. You can find insurers' telephone num-
bers on proof-of-insurance cards.
Step 7: Consider these settlement factors
· Bodily injuries: You may be entitled to a mon-
Step 3: Identify witnesses
etary settlement for injuries caused by another
Ask witnesses to the accident for their names and
liable party. It can take several days for some
phone numbers in case their account of the accident
injuries to become apparent.
is needed.
· Damages: The insurance company is responsible
to pay for the reasonable cost of repairs to your
Step 4: File an accident report
vehicle. An insurance adjuster will assess the
If the accident causes any injury or death, or
damage. Usually, insurance companies and auto
more than $1,500 damage to your vehicle or any
body shops negotiate disagreements about what
property, or more than $1,500 damage to any
should be repaired. If you disagree with their
vehicle and a vehicle is towed from the accident,
conclusions, you have the right to obtain another
Oregon law requires you to file an Oregon Accident
appraisal at any auto body shop.
and Insurance Report directly with DMV within
72 hours (three days). Accident report forms
· Appraisal clause: Most auto insurance policies
and detailed instructions are available at police
include an appraisal clause, which can be used to
departments, sheriff offices, DMV field offices, and
help settle disputes about physical damage claims
on DMV's Web site http:/ www.oregon.gov/ODOT/
between you and your insurance company. (The
DMV/driverid/accidentresp.shtml.
appraisal clause doesn't apply for claims you file
with the other party's insurance company.) If you
can't reach an agreement with your company, you
Step 5: Notify your insurer
or your insurer can initiate the appraisal clause.
Contact your insurance company about the acci-
Your appraiser and your insurer's appraiser then
dent as soon as possible. An insurance adjuster will
select an independent umpire to try to resolve the
determine who caused the accident. If the accident
dispute. Check your policy or ask your agent or
wasn't your fault, you can have either your insur-
insurance company for more information about the
ance company or the at-fault driver's insurance
appraisal clause.
company handle the repair or replacement of your
Dealing with total-loss claims
A total loss is declared when it would cost more to
Insurers must use a fair and reasonable method to
restore a vehicle to its original condition than to buy
determine the value of your car. They also must tell
a similar replacement vehicle on the market. An
you how they determined the value if you request
insurance company may provide reimbursement for
this information.
a vehicle that is a total loss by offering a comparable
vehicle in your local area, or by paying a cash settle-
ment based on your vehicle's fair market value.
6
Dealing with total-loss claims
There are several sources, usually available through
within 35 days of receiving payment if you can-
your local library, to help determine the fair mar-
not locate a comparable vehicle for the settlement
ket value of your vehicle and to locate comparable
amount. Your insurance company may either:
vehicles in your area:
· Pay the difference between the market value of
· CCC Information Services, Inc., www.cccis.com
your vehicle and the cost of a comparable vehicle
or (800) 621-8070
that you locate.
· ADP Autosource, www.adpclaims.com or
· Locate a comparable vehicle for you.
(800) 351-3133
· Offer a replacement vehicle of the same make and
· National Automobile Dealers Association's Used Car
year (or newer). It must be of similar body style,
Guide, www.nada.com
have similar options and mileage, and be
· Kel ey Blue Book, www.kbb.com
in as good or better overall condition than the
vehicle destroyed. You have the right to inspect
Finalize the settlement
the vehicle before accepting it.
Your claim is closed once you accept the insurance
· Initiate the appraisal clause in your policy.
payment or sign an insurance settlement form.
(See Appraisal clause, Page 6).
There is an exception for first-party claims (claims
The exception doesn't apply for third-party
you file with your insurance company). You can
claims (claims you file with the other party's
ask your insurance company to reopen your claim
insurance company).
Saving money on auto insurance
Before you buy
Discounts
Talk with your agent or insurance company about
You can save money on auto insurance by taking
insurance costs before you buy a car. Certain makes
advantage of discounts. Ask your agent or company
and models, especially sports cars, are higher risks
if you qualify for discounts for any of the fol owing:
for insurance companies and cost more to insure.
· You insure two or more cars on a policy.
Comparison shopping
· Your auto and home insurance are on the same
Ask several companies for quotes. By shopping
policy or with the same company.
around, you may find several hundred dollars' dif-
· Your child is under 25 and has good grades
ference between quotes. Be sure to compare identi-
in school.
cal coverages when comparing policies.
· Your child has completed a driver-education
course.
Coverages
· You've completed a defensive-driving course.
Drop collision coverage on cars that cost more to
repair than they are worth. For example, consider
· You're a mature driver between 50 and 65.
carrying only liability coverage for cars valued at
· Your vehicle has air bags, an anti-lock braking sys-
less than $1,000.
tem, other safety equipment, or anti-theft devices.
Increase your deductibles. Take the highest deduct-
· You're a low-mileage driver.
ible you can afford on collision and comprehensive
· You're in a carpool.
coverage.
· You haven't gotten any traffic tickets in three
years.
· You haven't been in any accidents in three years.
· You have a favorable credit history.
7
Saving money on auto insurance
Driving record
Check into discounts such as those listed on the
· Maintain a good driving record. Your premiums
previous page. If your young driver goes to school
are directly related to your driving record.
more than 100 miles away -- without a car -- you
· Under Oregon law, an insurance company can
may qualify for another discount.
use only the last three years of your driving record
Paying premiums
when deciding whether to issue or renew a policy
or determining your premium. If you've had an
You can save on service charges by paying premi-
accident or a violation, and your rates have gone up
ums in full rather than on a quarterly or month-to-
or your policy has been assigned to a nonstandard
month basis.
insurer, talk with your insurance agent or company.
Reviewing your policy
If it's been more than three years since your accident
Review your policy periodically and update cover-
or violation, you may qualify for a lower rate. If not,
age accordingly.
consider changing companies.
Notify your agent immediately if you move, sub-
· Take a defensive-driving course.
stantially reduce your annual mileage, sell your car,
Older drivers
change your marital status, or change the number of
Drivers 55 and older must be given a discount if
drivers in your household.
they complete a state-certified safe driving course.
Young singles on their own
Parents of teenagers
Avoid performance or "turbo cars." A turbo engine
If your teenagers don't own cars, make sure your
can add more than 10 percent to your premium.
insurer understands which cars they are going to be
driving and whether it will be occasional or princi-
pal use. If they do own cars, consider covering them
under your policy. Otherwise, they'll probably have
to pay higher premiums.
Auto-insurance questions & answers
Q: Why does my insurance cost more than my
If you told your insurance agent you have a perfect
agent said it would?
driving record, and you don't, your insurance com-
A:
pany will charge higher premiums than your agent
This is called a misquote. Determining your
quotes.
premium depends on many factors, includ-
ing where you live, the kind of car you drive, how
To avoid misquotes, provide accurate information
much you drive, how much coverage you want, your
about your driving record and any other facts affect-
driving record, and your age.
ing the cost of insurance, such as the make of your
If an error is made in reporting any of these facts,
car or how far you commute to work. Verify all
your rates won't be quoted correctly. Misquotes can
information before signing the application.
also happen if your agent makes a mistake in ap-
plying the company's rating system. Auto insurance
Q
: How does my driving record affect my
misquotes can happen when your application infor-
insurance premium?
mation differs from actual driving record.
Companies ask states' motor-vehicle divisions to
A
: The premium you pay is a direct reflection
verify the records of drivers they insure.
of your driving record for the past three
years. Insurance companies order driving records
from the Oregon DMV and from other states where
8
Auto-insurance questions & answers
you've been licensed. Statistics show that drivers
with tickets and accidents are more likely to have
Q: What happens if my loan was more than my
insurance company says my car was worth?
accidents than drivers with clean records.
Q:
A
: Sometimes the value of a car is less than the
Why is it harder to get insurance if drivers in
balance on your car loan. There can be sev-
my household have bad driving records?
eral reasons for this. Interest rate changes may have
increased the amount of your loan. Rebates may not
A: Many companies won't insure you if you
have applied to the purchase price, or poor mainte-
live with a relative who has a poor driving
nance of the auto may have reduced its value. The
record. If your teenager has a poor driving record,
insurance company bases its payments on the actual
you may have trouble getting a preferred rate
cash value (ACV) of the car, not the amount of your
because he or she is defined as an "insured" un-
loan. You may be able to purchase a special type of
der your policy. Some companies will exclude this
insurance, known as guaranteed auto protection
person by name from the insurance policy. Many
(GAP), when you buy a car. GAP insurance covers
companies won't insure anyone in the family unless
the difference between the ACV and your loan balance.
every driver in the household meets their requirements.
Q:
Q
: Why didn't I get a notice that my insurance
What do insurance companies consider when
policy was canceled?
they decide whether to cancel or not renew
policies?
A: Your company must send you notice at least
10 days in advance of canceling your policy
A: Insurance companies evaluate the risks
for nonpayment. If your policy has been canceled or
associated with each policyholder to de-
"non-renewed" for a reason other than nonpayment,
termine if you are a "good risk" or if your policy
the company must give you at least 30 days' advance
should be canceled or not renewed. Some of the
notice. An explanation of the reasons for the cancel-
areas insurance companies review:
lation or non-renewal must be part of or accompany
· Claims. Do you file claims frequently or for
the notice.
large amounts?
Under Oregon law, insurance companies must be
· Driving record: Do you have a bad driving record
able to prove notice was sent but not that you re-
(speeding, DUI, etc.)
ceived it. It's your responsibility to tell your insur-
· Credit history. Do you have bad credit? Have you
ance company if your address changes. Keep track
filed for bankruptcy?
of your payments.
Q: My car was "totaled." Why didn't my policy
Q
: What's the difference between comprehensive
pay what I think my car was worth?
and collision coverage?
A: Most auto insurance policies pay the actual
cash value (ACV) of a vehicle totaled in an
A: Comprehensive coverage typically covers
damage from fire, theft, explosion, glass
accident. The ACV is equal to the market value of an breakage, animal collision, and other incidents not
auto immediately before the accident.
covered by collision coverage. Collision is usually
Insurers must use a fair and reasonable method to
defined as colliding with another object or overturn-
determine the value of your car. They also must tell
ing. Most auto policies have lower deductibles for
you in writing that information about how they de-
comprehensive coverage than for collision coverage.
termined the value is available if you request it.
If you have an older car that may cost more to repair
than it's worth, consider the following to save money:
Tell the insurance company what you believe makes
your car worth more than the insurer is willing to
· Raise your deductibles.
pay you. It may come down to negotiations between
· Drop your collision or comprehensive coverage.
you and the insurance company. But remember, an
· Drop both your collision and comprehensive
insurance company won't compensate you for your
coverage.
car's sentimental value.
9
Using the price comparisons
Auto insurance costs vary widely among the more
The coverages limits in this comparison are the
than 200 companies doing business in Oregon. The
minimums required by Oregon law: They are not
premium comparison charts on the following pages
recommended levels of coverage. The coverage lim-
show how important it is to shop around for auto-
its quoted in this comparison:
mobile insurance.
· Bodily injury (BI) liability coverage of $25,000 per
The key to comparison shopping is to know what
person, $50,000 per occurrence (injury caused to
insurance coverage you need before you start and
other parties).
to find out how much the coverage will cost from a
· Property damage (PD) liability coverage of $10,000
number of insurers. You need to make sure that all
(damage caused to property belonging to others).
quotes are for the same amount of coverage. Large
variances in premiums may be attributable to differ-
· Personal injury protection (PIP) of $15,000 per
ent limits or deductibles.
person (no-fault).
For this guide, we asked the 25 largest auto insurers
· Uninsured motorist bodily injury (UMBI) cover-
in Oregon to quote annual premiums for four types
age of $25,000 per person and $50,000 per occur-
of drivers in seven cities. Participating companies
rence for bodily injury.
are listed in alphabetical order, beginning on Page
Although price is a major factor in choosing insurance,
11.
it's also important to look closely at policy provisions,
Please note that premiums are quoted as of Nov.
coverage limits, and the quality of service.
1, 2002, and changes are likely to have occurred
One source of information about the quality of ser-
since then. The quotes are included in this guide to
vice is the Consumer Guide to Oregon Insurance Com-
demonstrate that premiums can vary widely from
plaints, which annually rates insurers based on the
company to company.
number of consumer complaints to the Insurance
Also, please note that rate comparisons in this guide
Division. To request a copy, call (503) 947-7984 or
don't cover all situations. For specific information
(888) 877-4894 (toll-free in Oregon). The guide is also
about rates, contact individual insurance agents or
on our Web site, insurance.oregon.gov; click
companies.
on publications.
10
Price comparisons
Example 1
ay
Tire family
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Tom and Tammy Tire,
both 44, are married.
1. Allstate Indemnity
------------------------Not eligible ------------------------------
Tom drives a 2000
2. Allstate Property & Casualty
350
327
398
339
279
510
471
Toyota Camry (4 cyl.)
five miles each way
3. American Family Mutual
269
312
281
269
268
482
363
to work, five days a
4. American Standard of Wisconsin ------------------------Not eligible ------------------------------
week. Tammy drives
a 2000 Dodge Cara-
5. Country Mutual
395
449
441
395
357
724
545
van (6 cyl.) 10 miles
6. Farmers of Oregon
384
399
384
408
303
683
518
each way to work,
five days a week.
7. GEICO General
476
486
504
476
415
638
538
Neither has had an
8. Liberty Mutual Fire
333
377
356
333
323
506
429
accident or moving
9. Mid-Century
------------------------Not eligible ------------------------------
violation in the past
three years. Their old- 10. Mutual of Enumclaw
472
389
482
394
296
716
482
est of three children, 11. Nationwide Mutual
393
410
384
393
358
548
495
16-year-old Ty, just
got his driver license. 12. Nationwide Mutual Fire
364
379
355
364
332
506
458
He has had no tickets 13. North Pacific
392
414
399
334
298
565
420
or accidents, has a 3.0
grade point average, 14. Oregon Mutual
480
465
469
465
438
533
475
and only drives oc-
15. Progressive Halcyon
398
418
412
401
384
519
466
casionally.
16. Progressive Northern
276
327
318
287
259
524
407
17. State Farm Fire & Casualty
477
501
512
477
463
739
623
18. State Farm Mutual Auto
470
494
505
470
457
728
614
19. United Services Auto Assoc.
420
454
454
431
393
551
545
20. USAA Casualty
434
469
469
445
406
569
563
21. Western Protectors Preferred
379
369
372
369
350
418
377
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
11
Price comparisons
Example 2
ay
Bill & Barbara
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Bumper
1. Allstate Indemnity
------------------------Not eligible ------------------------------
Bil and Barbara Bum-
per, both 35, are mar- 2. Allstate Property & Casualty
216
203
245
212
176
314
290
ried. Bil drives a 2001 3. American Family Mutual
180
207
187
180
179
318
240
Ford Explorer (6 cyl.)
two miles each way
4. American Standard of Wisconsin ------------------------Not eligible ------------------------------
to work, five days
5. Country Mutual
190
215
211
190
173
341
259
a week. He hasn't
had an accident or
6. Farmers of Oregon
302
311
299
313
251
520
407
moving violation in
7. GEICO General
262
267
277
262
230
348
295
the past three years.
Barbara drives a 1998 8. Liberty Mutual Fire
243 274
259
243
236
364
310
Dodge Neon (4 cyl.)
9. Mid-Century
------------------------Not eligible ------------------------------
five miles each way
10. Mutual of Enumclaw
346
287
354
289
221
519
354
to work, five days a
week. She hasn't had 11. Nationwide Mutual
260
270
254
260
237
358
324
an accident in the
12. Nationwide Mutual Fire
241
251
235
241
220
331
301
past three years, but
was cited one year
13. North Pacific
229
241
235
196
175
328
246
ago for speeding (45 14. Oregon Mutual
308
293
297
293
266
361
303
mph in a 30-mph
zone).
15. Progressive Halcyon
451
475
470
453
437
592
531
16. Progressive Northern
309
367
358
320
287
586
458
17. State Farm Fire & Casualty
320
336
343
320
311
490
415
18. State Farm Mutual Auto
282
296
303
282
274
434
367
19. United Services Auto Assoc.
257
276
275
263
242
328
325
20. USAA Casualty
256
274
273
261
241
325
322
21. Western Protectors
------------------------Not eligible ------------------------------
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
12
Price comparisons
Example 3
ay
Kyle Klutch
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Kyle is a single male,
age 23. He drives
1. Allstate Indemnity
820
732
941
839
654
1378 1192
a 1999 GMC Sierra
2. Allstate Property & Casualty
------------------------Not eligible ------------------------------
1500 (1/2 ton, 8 cyl.)
10 miles each way
3. American Family Mutual
------------------------Not eligible ------------------------------
to work, five days a
4. American Standard of Wisconsin 844
928
867
844
842
1260 1028
week. He's had two
speeding tickets
5. Country Mutual
------------------------Not eligible ------------------------------
within the past two
6. Farmers of Oregon
------------------------Not eligible ------------------------------
years (both 75 mph
in a 55-mph zone)
7. GEICO General
------------------------Not eligible ------------------------------
and was cited one
8. Liberty Mutual Fire
------------------------Not eligible ------------------------------
year ago for driving
9. Mid-Century
975 1023
949
1032
691
1682 1251
under the influence
of alcohol (DUI). He
10. Mutual of Enumclaw
------------------------Not eligible ------------------------------
has had no other
11. Nationwide Mutual
------------------------Not eligible ------------------------------
moving violations or
accidents, and there
12. Nationwide Mutual Fire
------------------------Not eligible ------------------------------
are no other drivers
13. North Pacific
------------------------Not eligible ------------------------------
in the household.
Kyle needs an
14. Oregon Mutual
------------------------Not eligible ------------------------------
SR-22 filing,
15. Progressive Halcyon
383
434
425
387
350
678
547
which provides
proof of financial
16. Progressive Northern
307
364
355
315
285
574
449
responsibility.
17. State Farm Fire & Casualty
------------------------Not eligible ------------------------------
18. State Farm Mutual Auto
------------------------Not eligible ------------------------------
19. United Services Auto Assoc.
------------------------Not eligible ------------------------------
20. USAA Casualty
------------------------Not eligible ------------------------------
21. Western Protectors
------------------------Not eligible ------------------------------
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
13
Price comparisons
Example 4
ay
Lloyd & Linda
Insurance company
Bend
97701 Coos B
97420 Eugene
97405 Medford
97501 Pendleton
97801 Portland
97211 Salem
97301
Lugnut
Lloyd and Linda,
1. Allstate Indemnity
------------------------Not eligible ------------------------------
both 67, are married. 2. Allstate Property & Casualty
111
104
125
108
90
161
149
They drive a 1999
3. American Family Mutual
78
90
82
78
78
138
104
Buick Century four-
door sedan (6 cyl.)
4. American Standard of Wisconsin ------------------------Not eligible ------------------------------
for pleasure. Their
5. Country Mutual
128
145
142
128
116
231
175
annual mileage is less
than 7,500. They have 6. Farmers of Oregon
95
95
102
101
99
181
146
had no accidents or
7. GEICO General
127
130
134
127
112
169
143
moving violations in
the past three years.
8. Liberty Mutual Fire
128
144
137
128
125
191
163
9. Mid-Century
------------------------Not eligible ------------------------------
10. Mutual of Enumclaw
172
143
176
145
110
259
176
11. Nationwide Mutual
138
144
135
138
126
190
173
12. Nationwide Mutual Fire
128
133
125
128
117
177
160
13. North Pacific
123
130
126
105
94
177
132
14. Oregon Mutual
150
136
140
135
110
202
146
15. Progressive Halcyon
227
252
247
229
211
374
309
16. Progressive Northern
183
217
212
188
169
346
270
17. State Farm Fire & Casualty
128
134
137
128
124
195
165
18. State Farm Mutual Auto
122
128
130
122
119
186
158
19. United Services Auto Assoc.
122
130
130
124
114
154
153
20. USAA Casualty
121
129
129
124
114
153
151
21. Western Protectors
122
110
114
110
90
165
119
Notes
· All figures are rounded.
· Premiums are for six months, as of Nov. 1, 2002, and changes are likely to have oc-
curred since then. The quotes are included in this guide to demonstrate that premi-
ums can vary widely from company to company.
· Please see Company information, Pages 15-18, for additional information from the
insurer.
· Rate comparisons in this guide don't cover all situations and are subject to change
without notice. For specific information about rates, contact individual insurance
agents or companies.
14
Company information
The following companies provided additional information about their rate quotes.
1. Allstate Indemnity Co.
Example 2: Multiple-vehicle, airbag, and Auto and
Credit scoring: Allstate uses insurance scores, along
Home Premium Advantage discounts were applied
with other policy information, in the underwriting
to both vehicles.
and premium-determination processes.
Example 4: The Lugnut family received airbag and
Examples 1, 2, and 4: These risks would be written
Auto and Home Premium Advantage discounts.
in Allstate Property & Casualty Co., not Allstate
Indemnity Co.
4. American Standard Insurance Co.
Example 3: A driving record surcharge, certified
of Wisconsin
risk surcharge, anti-lock brake discount, and
Credit scoring: American Standard does not use
passive restraint discount have been applied.
credit scoring.
Examples 1, 2, and 4: These risks would be written
2. Allstate Property & Casualty Ins. Co.
in American Family Mutual Insurance Co., not in
Credit scoring: Allstate uses insurance scores, along
American Standard Insurance Co. of Wisconsin.
with other policy information, in the underwriting
and premium-determination processes.
Example 3: An airbag discount was applied.
Example 1: Sixteen-year-old Ty is assigned as a
restricted operator to the 2000 Dodge Caravan. A
5. Country Mutual Insurance Co.
good-student discount and an inexperienced-opera-
Credit scoring: Country Mutual uses credit scores
tor surcharge have been applied to the Caravan. A
for new business underwriting eligibility in con-
passive restraint discount, premier discount, and
junction with other criteria, as well as for rating.
Tier Factors Discount were applied to both vehicles.
Credit scores are only used on renewal business at
the insured's request.
Example 2: The 2001 Ford Explorer received
an anti-lock brake discount. A passive restraint dis-
Other notes:
count and Tier Factors Discount were applied
Example 1: The Tire family has been given our
to both vehicles.
multi-line policy discount and the Select Customer
Discount. We assumed that Ty Tire has maintained
Example 3: This risk would be written in Allstate
his 3.0 grade point average for at least two semes-
Indemnity Co., not Allstate Property & Casualty
ters.
Insurance Co.
Example 2: Bill and Barbara Bumper have been
Example 4: A passive restraint discount, premier
given our multi-line policy discount and the Select
discount, anti-lock brake discount, and Tier Factors
Customer Discount.
Discount were applied.
Example 4: Lloyd and Linda Lugnut have been
given our multi-line policy discount. We assumed
3. American Family Mutual Insurance Co.
the Lugnuts have completed an approved course of
Credit scoring: American Family does not use
traffic safety, and have given them our defensive-
credit scoring.
driving discount.
Example 1: The Tire Family received multiple-vehi-
cle and airbag discounts for both vehicles. The Auto
and Home Premium Advantage was applied to the
2000 Toyota. Ty was rated as an occasional operator
on the 2000 Dodge and a good-student discount was
applied.
15
Company information
6. Farmers Insurance Co. of Oregon
9. Mid-Century Insurance Co.
Credit scoring: Farmers Insurance Co. of Oregon
Credit scoring: Please see Farmers Insurance Co.
and Mid-Century Insurance Co. use credit infor-
of Oregon.
mation in the rating process. We use an insurance
bureau score developed by Fair, Isaac and Co., Inc.
Other notes:
The Farmers Auto Risk Assessment (FARA) code is
Example 3: An additional $15 fee has been added
determined from scores received from Fair Isaac.
to the quoted premium for the Financial Responsi-
Associated discounts are given based on a FARA
bility Filing (SR-22) required in this example.
code.
Insurance bureau scores are not used to make
10. Mutual of Enumclaw
acceptability decisions. These scores are used to
Credit scoring: Mutual of Enumclaw uses credit
determine premiums, but are never used as the
scoring in the underwriting of new business.
sole source to determine premiums. Many other
traditional pricing factors still are used in conjunc-
tion with insurance bureau scores, (territory, vehicle
11. Nationwide Mutual Insurance Co. and
type, driving record, etc.).
12. Nationwide Mutual Fire Insurance Co.
Credit scoring: Nationwide uses credit scores as a
Farmers and Mid-Century currently offer several
factor when determining whether to accept or de-
FARA discounts in Oregon. Customers may be eli-
cline a risk. Nationwide does not use credit scores to
gible for a FARA discount ranging from 4 to 36 per-
determine rates in Oregon.
cent. The FARA discount was introduced in Oregon
in March 2000.
13. North Pacific Insurance Co.
Other notes:
Credit scoring: North Pacific does not use credit
Example 3: Kyle Klutch would be quoted in Mid-
scoring.
Century Insurance Co., not Farmers Insurance Co. of
Oregon.
14. Oregon Mutual Insurance Co.
7. GEICO General
Credit scoring: We require a minimum score for
new business eligibility. Credit history is used in the
Credit scoring: GEICO uses credit in the underwrit-
underwriting renewal process to qualify policyhold-
ing process for new business.
ers who may not otherwise be renewed. Credit his-
Other notes:
tory also is used to qualify reinstatement of policies
Example 3: Kyle Klutch is not eligible for GEICO
that are canceled for nonpayment. A positive score is
General, but would qualify for one of the other
often the deciding factor when determining whether
GEICO companies.
to allow reinstatement. Credit history is not a factor
in pricing or rating decisions. There are no discounts
associated with a consumer's credit history.
8. Liberty Mutual Fire Insurance Co.
Other notes:
Credit scoring: Liberty Mutual Fire Insurance Co.
Example 1: The Tire family received dual air bag,
uses credit scores, in association with other charac-
anti-lock brake, and multi-car discounts. The 16-
teristics, in the underwriting and rating of new poli-
year-old son was quoted on the higher-rated vehicle
cies and the underwriting of renewal business.
(Toyota) and was given a good-student discount.
Other notes:
Example 2: The Bumper family received dual air
Example 1: Homeowner and good-student discounts
bag, anti-lock brake, and multi-car discounts.
were applied.
Example 4: The Lugnut family received dual
Examples 2 and 4: A homeowner discount was ap-
air bag, anti-lock brake, and defensive-driving dis-
plied.
counts for mature drivers.
16
Company information
15. Progressive Halcyon Insurance Co.
Other notes:
Credit scoring: Financial responsibility is part of
Example 1: We assumed that Ty occasionally
the initial underwriting to become a Progressive
drives the Camry and qualifies for a good student
policyholder. In no case is financial responsibil-
discount. We didn't assume that the drivers qualify
ity used to deny coverage, cancel, or non-renew a
for a multiple-line discount, which would lower
policy. Once a customer has been with Progressive
their premiums.
for two years, we may review the policy and reas-
sess financial responsibility in order to determine if
Examples 2 and 4: We didn't assume that the driv-
the policy is eligible for a better underwriting group.
ers qualify for a multiple-line discount, which
However, we will not make changes that result in a
would lower their premiums.
worse underwriting group.
18. State Farm Mutual Auto Insurance Co.
Other notes:
Example 2: Rates were based on a 2001 Ford
Credit scoring: Credit scores are a component of our
Explorer XLT (6 cyl.)
underwriting scoring model, which we use for de-
termining underwriting eligibility of new business.
Example: 3: Kyle Klutch was rated with
We do not use it in our policy-renewal process.
$50,000/$100,000 liability limits due to the DUI. A
$15 SR-22 filing fee is included in the rates, which
Other notes:
are based on the DUI occurring one year ago.
Example 1: We assumed that Ty qualifies for a
good student discount and occasionally drives the
Camry, that the Dodge Caravan qualifies for a new
16. Progressive Northern Insurance Co.
business discount, and that both vehicles are driven
Credit scoring: Please see Progressive Halcyon
more than 7,500 miles annually. We didn't assume
Insurance Co.
the Tire family qualified for a multiple-line discount,
which would lower their premiums.
Other notes:
Example 2: Rates were based on a 2001 Ford
Example 2: We assumed Barbara drives a 1998
Explorer XLT 4 X 2 model.
Dodge Neon Highline 2-door sedan and that both
vehicles are driven more than 7,500 miles annu-
Example: 3: Kyle Klutch was rated with $50,000-
ally. We didn't assume the Bumpers qualified for
$100,000 liability limits due to the DUI. A $15 SR-22
a multiple-line discount, which would lower their
filing fee is included in the rates, which are based on
premiums.
the DUI occurring one year ago. Rates also are based
on a 1999 GMC Sierra 1500 4 X 2.
Example 4: We assumed that all drivers qualify for
a new-business discount. We didn't assume the Lug-
nuts qualified for a multiple-line discount, which
17. State Farm Fire & Casualty Co.
would lower their premiums.
Credit scoring: Credit scores are a component of
our underwriting scoring model, which we use for
19. United Services Automobile Association
determining underwriting eligibility of new busi-
ness. We do not use it in our policy-renewal process.
(USAA) and 20. USAA Casualty Insurance
Co. (USAA-CIC))
Credit scoring: A credit score is only ordered on
new business and is considered along with other
risk factors to determine tier placement.
17
Company information
21. Western Protectors Insurance, Preferred
Other notes:
Customer Program
Example 1: The Tire family received dual-air-bag,
Credit scoring: We require a minimum score for
anti-lock brakes, and multi-car discounts. Ty was
new business eligibility. Credit history is used in
quoted on the higher-rated vehicle (Toyota) and was
the underwriting renewal process to qualify policy-
given a good-student discount.
holders who may not otherwise be renewed. Credit
Example 4: The Lugnut family received dual-air-
history is used to qualify reinstatement of policies
bag, anti-lock-brake, and defensive-driving
that are canceled for nonpayment. A positive score is
discounts for mature drivers.
often the deciding factor when determining whether
to allow reinstatement. An insured with tickets and/
or losses may qualify for insurance if he or she has a
positive credit history. Credit history is not a factor
in pricing or rating decisions. There are no discounts
associated with credit history.
18
Glossary
Actual cash value (ACV)
Financial responsibility law
The market value of your car.
If a judge convicts you of driving uninsured, you
will need to file proof of future financial responsibil-
Adjuster
ity with Oregon Driver and Motor Vehicle Services
A representative of an insurance company whose
(DMV) for three years or face suspension of your
job is to determine and "adjust" the amount of a loss
driving privileges. This is in addition to any fines
and decide how much the company will pay for it.
you must pay. Your insurance company can make a
Binder
financial responsibility filing for you by sending an
SR-22 insurance certificate to the DMV to show that
An acknowledgment that the insurance for which
you have liability insurance.
you applied is in force, whether or not you have paid
for it or received a policy.
Liability coverage
Cancellation
This coverage pays for losses to other people and
If you don't pay your premiums, an insurance com-
their property caused by negligence on your part.
pany can cancel your personal auto policy by giving
Preferred risk
10 days' written notice. The company is required
to give you 30 days' written notice if it is canceling
A person less likely than the average person to make
your policy for any other reason.
a claim. A preferred risk usually qualifies
for a lower premium.
Collision coverage
Proof of loss
This coverage pays for physical damage caused
when your car collides with another car or object
An estimate of damages you provide to an insur-
or if it overturns.
ance company to support your claim. Insurance
companies often use this document to figure how
Comprehensive coverage
much they will pay.
This coverage pays for damage to your vehicle not
SR-22
covered by collision coverage, such as fire, theft, or
vandalism.
An SR-22 is a certificate from an Oregon-licensed
insurance company certifying that you have pur-
Credit history
chased motor vehicle liability insurance as required
Many personal auto and homeowner insurance
by the state's financial responsibility law.
companies look at consumer credit information
to decide whether to issue or renew an insurance
Underwriting
policy and how much to charge.
The basic role of an insurance company: examining
and accepting or rejecting risks, and classifying the
Deductible
ones that are accepted to determine premiums.
The deductible is the amount you agree to pay on
each loss before your insurance company pays. Gen-
Uninsured motorist bodily injury (UMBI) and
erally, the larger your deductible, the smaller your
Underinsured motorist (UIM) coverage
premium.
Coverage for bodily injury to you and your pas-
sengers caused by an uninsured or underinsured
Diminution of value
driver.
The difference between a vehicle's value before it
was in an accident and after it has been repaired.
Uninsured motorist property damage
coverage (UMPD)
Coverage for damage to your auto caused by an un-
insured driver, "phantom vehicle," or a hit-and-run
driver.
19
Insurance publications
A variety of consumer publications are available
· Ayuda Gratuita con Medicare y Otros Seguros
from the Oregon Insurance Division. You may view
para la Salud
these publications on our Web site, or request a copy
Una lista de organizaciones locales que le ayudan
by:
a beneficiarios de Medicare hacer mejores decisio-
nes en cuanto a seguro para la salud.
Mail:
Publications
Oregon Insurance Division
· Oregon Insurance Rights for Consumers
P.O. Box 14480
Describes some important consumer rights that
Salem, OR 97309-0405
are protected by law.
Telephone: (503) 947-7984 or
· Oregon Consumer Guide to Medigap and
(888) 877-4894 (toll-free in Oregon)
Medicare + Choice Plans
E-mail:
dcbs.insmail
Compares Medicare supplement policies and
explains Medicare + Choice options.
There is no charge for copies of publications,
unless otherwise noted. Publications are also
· Oregon Insurance Division - Protecting the
available on our Web site, insurance.oregon.gov;
Insurance-buying Public
click on publications.
An overview of services provided by the
Insurance Division and where to call for
· Consumer Guide to Auto Insurance
answers to common insurance questions.
Compares auto insurance premiums and
provides money-saving tips for drivers.
· La División de Aseguradoras - Protegiendo al
Público en la Compra de Seguros
· Guía Básica de Oregon para seguro de autos
Una sintesis de servicios provistos por la
Explica los requisitos en Oregon para seguro de
División de Seguros y a donde llamar para ob-
autos.
tener respuestas acerca de comunes preguntas de
seguros.
· Consumer Guide to Health Insurance
Provides an overview of health insurance and
· A Shopper's Guide to Long-Term-Care Insurance
your health-care rights.
Provides an overview of long-term-care insurance,
including costs and benefits. Published by the Na-
· Consumer Guide to Homeowner and
tional Association of Insurance Commissioners.
Tenant Insurance
Compares premiums and provides money-saving
· Oregon Long-Term-Care Insurance
tips for homeowners and renters.
Describes long-term-care insurance and lists pro-
viders doing business in Oregon.
· Consumer Guide to Oregon Insurance Complaints
Ranks insurers from best to worst, based on the
number of consumer complaints to the Insurance
Division.
· Free Help with Medicare and Other Health
Insurance
Lists local organizations that help Medicare
beneficiaries make better health-insurance
decisions. Identifies volunteer assistance and
volunteer opportunities.
20
In compliance with the Americans with Disabilities Act
(ADA), this publication is available in alternative formats.
Call (503) 947-7980 or 947-7280 (TTY).
Information in this publication is in the public domain and
may be reprinted without permission.
Insurance Division
P.O. Box 14480
Salem, Oregon 97309-0405
440-2085 (4/05/COM)