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Oregon Teen Driver & Young Driver Auto Insurance

Oregon requires 25/50/20 liability coverage and is an at-fault state.

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Oregon at a Glance

25/50/20

Minimum liability limits, in thousands of dollars (per person / per accident / property)

At-fault

The at-fault driver's insurance pays for the damage they cause

Required

PIP and Uninsured motorist coverage must be on every policy

15

Minimum learner's permit age, 50 supervised driving hours

Source: state DMV, insurance department and statute records, verified July 2026

Minimum Coverage Requirements in Oregon

Teen drivers progress through a graduated licensing system beginning at age 15 with a learner's permit, advancing to a restricted provisional license at 16, and reaching an unrestricted license at 17 after completing six months with no traffic violations. Oregon law mandates that insurers offer good student discounts to drivers under 25 who maintain a B average or better, making this one of the few states where the discount is legally required rather than voluntary.

Liability Insurance

Parents adding a teen driver should consider increasing bodily injury limits to at least 100/300, as teen drivers are statistically more likely to cause accidents and the parent's assets are at risk if the teen is at fault. Adding a teen to a policy with state minimum limits keeps premiums lower but offers minimal financial protection.

Uninsured/Underinsured Motorist Coverage

Oregon requires insurers to offer uninsured/underinsured motorist (UM/UIM) coverage at the same limits as liability, though drivers can waive it in writing. For parents with teen drivers, UM/UIM coverage protects the family if the teen is hit by an uninsured driver—especially important given that teens are more likely to be involved in accidents during the first year of driving.

Personal Injury Protection (PIP)

Parents can reject PIP in writing, but keeping it provides immediate medical coverage for a teen driver injured in an accident without waiting for liability determination. PIP is particularly valuable for families without comprehensive health insurance, as it covers expenses health plans may exclude such as rehabilitation and essential services.

Collision Coverage

Collision coverage pays for damage to the teen's vehicle regardless of fault and is typically required by lenders if the car is financed or leased. Parents often place teen drivers in older, paid-off vehicles to avoid the high cost of collision coverage on a new car—collision premiums for teen drivers can be 2–3 times the adult rate.

Comprehensive Coverage

Comprehensive coverage protects against non-collision damage including theft, vandalism, weather, and animal strikes—common risks in Oregon given the state's rural areas and wildlife. For teen drivers in vehicles with significant value or in higher-crime zip codes in Portland, Salem, or Eugene, comprehensive coverage is typically more affordable than collision and protects against theft, a risk that increases when inexperienced drivers park in unfamiliar areas.

What Drivers Pay in Oregon

$221–$435/mo

Typical monthly rate in Oregon, adding a driver aged 16–19 to a parent's policy

Rate data: Insurify and ValuePenguin, 2025

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Rules for new drivers

Night driving

midnight-5am

Passengers

no passengers younger than 20 first 6 months, then max 3 (family exempt)

Source: IIHS and state DMV records, verified July 2026

Coverage Types

Adding Teen to Parent's Policy vs. Separate Policy

The primary decision for Oregon parents is whether to add the teen to an existing policy or purchase a standalone policy. Adding to a parent's policy is cheaper in approximately 90% of cases, as the teen benefits from the parent's multi-car, multi-policy, and tenure discounts.

Full Coverage for Financed Vehicles

Full coverage (liability + collision + comprehensive) is required by lenders if the teen's vehicle is financed or leased. For a teen driver in Oregon, full coverage on a financed vehicle can add $250–$500/mo to a parent's policy.

Good Student Discount (Oregon-Mandated)

Oregon law requires insurers to offer good student discounts to drivers under 25 who maintain a B average (3.0 GPA) or equivalent. This is a state-mandated discount, not a voluntary program.

Telematics Programs for Teen Drivers

Usage-based insurance programs monitor driving behavior through smartphone apps or plug-in devices, rewarding safe driving with premium discounts. Teen drivers who avoid hard braking, high speeds, and late-night driving can earn discounts of 15–30%.

Uninsured Motorist Coverage for Teen Drivers

Oregon requires insurers to offer UM/UIM coverage, and parents can reject it only in writing. Given the state's uninsured driver rate of approximately 14%, UM/UIM protects the family if the teen is hit by an uninsured or underinsured driver.

SR-22 for Young Drivers with Violations

Teen drivers who receive DUI convictions, multiple violations, or drive without insurance may be required by the Oregon DMV to file an SR-22 certificate of financial responsibility for three years. SR-22 itself is an administrative filing, but the underlying violation increases premiums significantly.

Find Your City in Oregon

Portland

urban

Eugene

urban

Salem

urban

Gresham

suburban

Hillsboro

suburban

Bend

urban

Medford

urban

Springfield

suburban