Portland Legal Services - Joanne Reisman, Attorney at Law
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New Oregon Law improves UM UIM Auto Insurance Coverage IF your policy is issued or renewed on or after January 1, 2016!

Very Very Important - All Oregonians will want to make sure their automobile policy is technically renewed or issued as close to January 1, 2016 as they can get it done.  Why?  

Well there was a new law passed this year that goes into effect as of January 1, 2016.   Known as Oregon Senate Bill 411, or referred to by us attorneys as the "UIM stacking legislation", this new law will actually improve your auto insurance coverage if your policy is  issued or renewed on or after January 1, 2016.   The law specifically increases the protection you have if you are in an accident where the other driver is at fault and the other driver's insurance is less then your insurance coverage or the other driver doesn't have insurance.

By law all auto insurance policies issued in Oregon have always been required to include a minimum amount of coverage called UM/UIM which is what pays your personal injury damages when the other driver has no insurance of lower insurance coverage limits. (Think of UM/ UIM as "under-insured" or "uninsured motorist protection") Currently all Oregon Auto Insurance policies must contain coverage of at least $25,000 per person/ $50,000 per accident.  (This means all policies will pay up to $25,000 to each individual that makes a claim but no more then a total of $50,000 for all payments made to all persons involved in the same accident.)  

Prior to this new law, the mandatory UM/UIM insurance, included in your automobile policy, usually did not pay you the full amount that the policy said it would pay.  This is because the law as, previously written, allowed your insurance company to first consider how much insurance the other driver had available to pay you, and count that insurance first, and then only pay you the difference. 

For example, if your UM/UIM coverage, that you had paid premiums to have, was say, $100,000.00, and you were in an accident where the at fault driver had $50,000 of liability coverage, you might think that you can expect both the $50,000, plus the $100,000, a total of $150,000, to be the total amount of funds to pay your damages.  (Assuming your injuries were such that you deserved that level of damages.)  But under the current law, your insurance company would tell you that you only have a maximum of $100,000 available consisting of the $50,000 from the other driver's insurance plus $50,000 more from your policy.  You don't get the full $100,000 you paid for on your policy because they treat the total amount as a guarantee of the amount you will get, including what you get from the other driver, so they don't have to pay you what you can get from the other driver.

This all changes as of January 1, 2016.  You will now legally be entitled to get, under the above example situation,  both the $50,000 from the at fault driver plus your full limit of $100,000 for a total of $150,000.   (Again, you have to still prove that your injuries are worth the full $150,000, but assuming you can do that, you have a larger fund to draw from.)   THE CATCH IS: The new law will not apply to you until your policy is actually renewed or newly issued in 2016!  So don't wait for your actual renewal date sometime later in 2016.  Call you insurance agent and find out what you can do to trigger an earlier renewal.


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