Updated July 2026
What Is Personal Injury Protection Insurance?
Personal Injury Protection pays your medical expenses, lost income, and essential services costs after a car accident, no matter who was at fault. Oregon law requires insurers to offer PIP with a minimum $15,000 limit, but you can reject it in writing. If you reject PIP, you give up the right to sue another driver for non-economic damages like pain and suffering unless your injuries meet Oregon's serious injury threshold: death, serious permanent disfigurement, or impairment preventing normal activities for 90 days or more.
- You lose control on a wet road and hit a tree. You have a concussion and miss three weeks of work. Your PIP coverage pays your emergency room bill, follow-up doctor visits, and replaces 70% of your lost wages up to your policy limit. Because you caused the accident, liability coverage won't help you, but PIP does.
- Another driver rear-ends you at a red light. You have whiplash and need physical therapy. Your PIP pays your medical bills immediately without waiting for the other driver's insurer to accept fault or process your claim. You can still pursue a claim against the at-fault driver's liability coverage, but PIP gets you treated faster.
- You rejected PIP to save money. Another driver runs a stop sign and hits you. You have soft tissue injuries and miss two weeks of work. The at-fault driver's liability coverage pays your medical bills and lost wages, but you can't sue for pain and suffering because your injuries don't meet Oregon's serious injury threshold. If you'd kept PIP, you'd have faster payment and preserved lawsuit rights.
Who Needs Personal Injury Protection Insurance?
PIP makes sense if you don't have health insurance or carry a high-deductible health plan, because it pays medical bills immediately without waiting for fault determination. It's valuable for self-employed drivers or gig workers who need lost-wage replacement without employer-provided disability coverage. If you want to preserve the right to sue for pain and suffering after an accident without meeting Oregon's serious injury threshold, keeping PIP is the only way to do it.
Compare your PIP premium to your health insurance deductible and out-of-pocket maximum. If PIP costs less annually than your health plan's gap, it's worth keeping. If you're self-employed or lack disability insurance, PIP's wage replacement justifies the cost. If you want full lawsuit rights without meeting a serious injury threshold, don't reject PIP.
How Much Does Personal Injury Protection Insurance Cost?
PIP typically adds $8 to $25 per month to an Oregon auto insurance premium, depending on your coverage limit and deductible.
- Coverage limit: Oregon's minimum is $15,000, but you can buy $25,000, $50,000, or higher limits, which increase your premium.
- Deductible choice: A $500 or $1,000 deductible lowers your monthly cost compared to zero-deductible PIP.
- Driving record: Drivers with at-fault accidents or claims history pay more for PIP because insurers expect higher claim frequency.
- Stacked coverage: If you insure multiple vehicles, stacking PIP limits across policies raises your cost but increases total available coverage.
- Age and location: Younger drivers and those in Portland metro areas with higher accident rates pay more for PIP than rural Oregon drivers.