Pay-As-You-Drive (PAYD) Auto Insurance, which charges insurance premiums by the mile, is coming soon to Oregon. This could save low-mileage drivers a fortune in insurance costs, but until PAYD is fully implemented, Oregon drivers will have to compare auto insurance rates like everyone else to find the best deal.
In Oregon, an insurance company can place a driver into one of three categories. Preferred drivers haven't been in an accident or filed a claim in the last three years, so they get the best rates. Standard drivers usually drive "family" cars and have a clean driving record, but it's not perfect. They get the next best insurance rate. Nonstandard is the name for the lowest level. These are people who have a bad driving record, are under 25 years old, or have been caught driving under the influence of drugs or alcohol. Their auto insurance premiums are the highest.
Obviously, if you want to save money on auto insurance in Oregon and get a discount, you need to be in one of the top two groups.
A driver who has been convicted of drunk driving or driving under the influence of drugs won't be able to change his or her insurance classification for a few years. However, a driver under 25 who stays in school and gets good grades can get a discount on auto insurance premiums. These students can get a discount for being good students.
Other things that directly affect the rate you pay for auto insurance include the type of car you drive (sports cars and high-performance cars have the highest rates), where you live (people who live in cities pay more than those who live in less crowded areas), how many miles you drive every day, and your driving history. Even your credit score can have an effect on how much your auto insurance costs, but Oregon law limits how much of an effect it can have.
Today, people in Oregon who want to buy auto insurance can go online and compare the prices offered by almost all of the state's auto insurance companies. Spending an hour or two on one of the many sites that let you compare rates is a good way for the average Oregon driver to find the right discount auto insurance.
