Oregon Now Requires Insurers to Explain Car Insurance Premium Increases

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Oregon drivers whose personal auto premium rises at renewal on or after September 1, 2026, can demand a written explanation from their insurer. House Bill 2563 requires the insurer to respond within 20 days with the specific factors that drove the increase. The law does not guarantee a lower price, but it gives drivers a documented answer.

What does Oregon’s new law require insurers to do?

Oregon’s House Bill 2563 requires insurers to provide a clear and reasonable written explanation of the factors that drove a premium increase at renewal. The law applies to qualifying renewals on or after September 1, 2026. The insurer must respond within 20 days of receiving a written request from the policyholder. The explanation must identify at least one but no more than four factors that most significantly contributed to the increase.

The implementing rules from the Oregon Division of Financial Regulation (DFR) took effect April 1, 2026. A factor is “significant” if the portion of the premium increase attributable to it exceeds 2% of the current policy premium and it ranks among the top four dollar-impact contributors. The explanation must identify and explain each factor that meets both conditions.

The explanation itself must contain specific information: the insurer’s licensed name, address, and NAIC number; the insured’s name, policy type, policy number, policy period, and effective date; the date of the explanation; and instructions on how to contact the insurer with questions. This gives the driver a way to verify that the response is complete.

Who is covered and who is not?

The right covers personal auto insurance policies, along with homeowner and dwelling fire policies, when the policy is a “qualified policy” under Oregon law. A legislative staff summary notes that the final amendment added “personal insurance” and removed “motor vehicle liability insurance” from the definition of a qualified policy. In practice, that means the right is aimed at personal auto policies, not at commercial motor vehicle liability policies.

The law applies to qualified insurers — those whose combined written premium in the qualifying lines (personal auto, home, and dwelling) is $1 million or more in a calendar year. If your insurer writes less than that in Oregon, the law’s explanation requirement may not apply. Most major auto insurers meet this threshold, but drivers with a small regional carrier should confirm.

It does not cover every type of vehicle policy. Motorcycle, boat, recreational-vehicle, and off-road-vehicle policies are excluded, as are collector antique and specialty-use vehicles. The law also excludes new-policy applications, purchases, and changes that the insured initiates to coverage or premium amount.

What should Oregon drivers do now?

If your Oregon personal auto policy renews at a higher price on or after September 1, 2026, you can send a written request to your insurer. The request must include your name and address as the insured, the policy number and policy type, and a clear statement that you are requesting an explanation of the renewal premium increase. You can submit the request by postal mail, email, hand delivery, or an available insurer portal.

Why are Oregon rates going up?

Oregon auto insurance rates have been rising sharply. A 2026 report from The Zebra projected that Oregon would see the highest auto insurance rate increases in the nation, with some forecasts pointing to increases of roughly 9% to 17% in the first quarter and 14% to 17% in the second quarter of 2026 compared with the prior period. These are projections, not final rate actions. If you want to understand the broader reasons why rates rise even for drivers with clean records, our guide to why car insurance goes up with a clean record explains the common factors.

Lawmakers passed HB 2563 in 2025 to give consumers a clearer picture of why their own renewal premiums are changing, rather than leaving them to guess. The DFR’s rules, adopted in early 2026, turn that legislative intent into a specific process with deadlines and content requirements.

What happens next, and what if the insurer does not respond?

The law is already operative for qualifying renewals on or after September 1, 2026. The DFR’s implementing rules took effect April 1, 2026, so the process is in place now. Insurers must include the required notice on renewal offers and on the first invoice after renewal. If a driver submits a written request for a renewal that qualifies, the 20-day clock starts when the insurer receives it. No further legislative action is needed for the right to apply.

If the insurer does not respond within 20 days, you can contact the Oregon Division of Financial Regulation’s consumer advocacy team for help. The DFR oversees insurers in Oregon and can review complaints about compliance with the new law.

Frequently Asked Questions About Oregon’s New Law

Does this apply to my motorcycle policy?

No. The law excludes motorcycle, boat, recreational-vehicle, and off-road-vehicle policies, as well as collector antique and specialty-use vehicles.

Can I just call my insurer and ask?

A phone call alone is not enough. The law requires a written request. You can send it by mail, email, hand delivery, or an insurer portal, but it must be in writing and include the required details.

What if the insurer says the increase is due to “market conditions”?

The explanation must identify and explain the specific factors that significantly contributed to the increase, not just a general phrase. The rule requires the insurer to explain each factor that meets the 2% threshold and ranks among the top four dollar-impact contributors.