Oregon Legislature Weighs Increase in Motor Vehicle Liaiblity Coverage

February 6, 2009

The Oregon House is evaluating a bill, HB 2326, that would increase the amount of motor vehicle liability coverage required for property damage and certain personal injury protection benefits.

According to bill text, PIP benefits required by law for the injury or death of each person, and include reasonable and necessary medical, hospital, dental, surgical, ambulance and prosthetic services incurred within one year after the date of the person’s injury, but not more than $15,000 in the aggregate. If the injured person is unable to work for at least 14 days, then the bill proposes 70 percent of the loss of income from work during the period of the disability until the date the person is able to return to his or her usual occupation is eligible for benefits, subject to a maximum of $5,000 per month and a maximum period of 52 weeks. This amount was increased from $1,250 per month.

Additionally, the bill proposes payments because of injury to or destruction of property of others in any one accident be increased from $10,000 to $25,000.

According to the Independent Insurance Agents and Brokers of Oregon’s Executive Director Jim Perucca, the bill would affect lower-income individuals more because of their lack of ability to buy higher benefits, whereas “most people purchase more than the minimum coverage.”

For more information, visit http://landru.leg.state.or.us/09reg/measpdf/hb2300.dir/hb2326.intro.pdf.

Source: Oregon Legislature

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