Can an Insurance Company Raise Rates after a Crash?

As an Oregon Personal Injury Lawyer, I often am asked by clients if the crash will affect their rates even if they were not at fault. There is not a clear answer on that issue. Oregon Law prohibits an Insurer from considering an individual’s employment driving record or nonemployment driving record in determining rates for, or whether to issue or renew, a policy of personal insurance. Personal insurance includes individual automobile liability and damage coverage. See ORS 746.260

However, the insurer can consider an “abstract of nonemployment driving record.” See ORS 746.265. Under ORS 802.220 an “abstract” contains any crash or conviction for violation of motor vehicles laws that occurred less than three years immediately preceding the insurer’s request for the abstract, any suspension ordered by the DMV for reasons other than Failure to Appear, and any diversion agreement (think DUII) that occurred within three years before the insurer requested the abstract. Additionally, the insurer cannot consider any traffic violation convictions, non-driving-related suspensions, or diversion agreements that were more than three years prior to considering the policy renewal or insurance rates.

Here is the text of the Law ORS 746.260:

ORS 746.260

Driving record not to be considered in the issuance of motor vehicle insurance

(1)As used in this section, “employment driving record” and “nonemployment driving record” mean the employment driving record and nonemployment driving record described in ORS 802.200 (Required records).

(2)Except as provided in subsection (4) of this section, an insurer may not consider an individual’s employment driving record or nonemployment driving record in determining rates for, or whether to issue or renew, a policy of personal insurance, as defined in ORS 746.600 (Definitions for ORS 746.600 to 746.690), that provides, for the individual, automobile liability coverage, uninsured motorist coverage, automobile medical payments coverage or automobile physical damage coverage on an individually owned passenger vehicle, including pickup and panel trucks and station wagons. An insurer may not cancel the policy or discriminate in regard to other terms or conditions of the policy based upon the individual’s employment driving record or nonemployment driving record.

(3)This section does not affect the enforcement of the motor vehicle laws.

(4)An insurer may use the abstract of the individual’s nonemployment driving record as authorized under ORS 746.265 (Purposes for which abstract of nonemployment driving record may be considered). [1973 c.113 §2; 1979 c.662 §2; 1983 c.338 §969; 1987 c.5 §6; 2015 c.76 §1]

Here is the text of ORS 746.265

Purposes for which abstract of nonemployment driving record may be considered

(1)Subject to subsection (2) of this section, an insurer may consider the abstract of an individual’s nonemployment driving record under ORS 802.220 (Availability of records) when evaluating the individual’s application to obtain or renew personal insurance, as defined in ORS 746.600 (Definitions for ORS 746.600 to 746.690), that provides automobile liability coverage, uninsured motorist coverage, automobile medical payments coverage or automobile physical damage coverage on an individually owned passenger vehicle, including pickup and panel trucks and station wagons:

(a)For the purpose of determining whether to issue or renew the individual’s policy.

(b)For the purpose of determining the rates of the individual’s policy.

(2)For the purposes specified in subsection (1) of this section, an insurer that issues or renews a policy described in subsection (1) of this section may not consider any:

(a)Accident or conviction for violation of motor vehicle laws that occurred more than three years immediately preceding the application for the policy or for renewal of the policy;

(b)Diversion agreements under ORS 813.220 (Matters to be considered by court in determining to allow diversion agreement) that were entered into more than three years immediately preceding the application for the policy or for renewal of the policy; or

(c)Suspension of driving privileges pursuant to ORS 809.280 (Department procedures following court order of suspension or revocation) (6) or (8) if the suspension is based on a nondriving offense.

(3)Subsection (2) of this section does not apply if an insurer considers an individual’s nonemployment driving record under ORS 802.220 (Availability of records) for the purpose of providing a discount to the individual. [1987 c.5 §5; 1989 c.853 §1; 1991 c.860 §7; 1999 c.59 §231; 2001 c.327 §1; 2011 c.355 §25; 2015 c.76 §2]

Please remember that this blog is for informational purposes only and there may be other reasons that an insurer raises rates. Please also remember that although Jeremiah Ross is an Oregon Personal Injury lawyer, that this post is not to be considered legal advice. Please call Ross Law LLC at 503.224.1658 if you have been injured in a car crash or car accident and have questions about insurance. Please also remember that the law is constantly changing, so please do not rely solely on this post for information and the language of the law on Driving Records to Be Considered.