Tell lawmakers to vote NO on legislation that risks higher insurance rates
New legislation could force Oregon families to pay $1,100 more per year for insurance,* while driving higher auto, small business, and rental housing costs statewide. Affordability is already at an all-time low in Oregon, and we can’t absorb additional increases. Together, we can help prevent this legislation.
Oregon can’t afford frivolous lawsuits.
Oregonians are already finding it harder to get affordable insurance for their homes, vehicles, and businesses. Premiums are up, existing policies are being non-renewed, and in some communities, it is hard to access coverage at all due to wildfires and natural disasters. But instead of protecting Oregon consumers with legislation that promotes an affordable insurance market, new legislation adds the threat of costly litigation. Lawsuits are a primary driver of insurance price increases, which means everyone may pay more or be unable to access insurance.
Lawmakers in Salem could make homeowners, auto, property and business insurance more expensive by enabling frivolous lawsuits – even when claims are dismissed. We can’t afford for Oregon to become the next California, where some insurers have stopped selling new policies and are exiting the state altogether.
Who pays more when insurance rates go up?
Families:
The average Oregon family that owns a home and has two cars could see rates climb as much as 16% due to this bill - that’s about $1,100 added to your expenses each year. Wildfires and natural disasters are already spiking rates and causing non-renewal. Families can’t absorb another increase.
Renters:
Housing providers raise rent to cover insurance cost increases. Nationally, 58% of housing providers say they plan to raise rent to cover insurance costs.
Drivers:
This legislation could spike car insurance rates even higher, and they’ve already risen 28% in the last two years. When rates go up, low-income Oregonians face a heavier financial strain.
Small businesses:
Premiums are skyrocketing for small businesses, which employ more than half of Oregon’s workers. Higher insurance costs would stifle growth, prevent hiring and cause higher prices to be passed to Oregon consumers.
The Facts
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New Legislation Risks Raising Insurance Premiums
This legislation opens the door for excessive and frivolous lawsuits, because it allows two lawsuits for a single insurance claim – one seeking damages from an at-fault party, then another against the insurer for how they resolved the claim.
A recent study by Milliman found that this legislation would cost Oregon consumers $0.6-1.4 billion, an estimated 7% to 16% rise in premiums paid by Oregon residents and businesses. That’s an extra $1100 or more each year that families may have to pay if this bill passes.
Other states that have adopted these policies have seen rates rise, such as California.
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Wildfires Are Already Driving Insurance Costs Higher
Wildfires are already driving rate increases and policy non-renewals across Oregon. Many families are stretched thin and can’t take on higher costs.
In wildfire-prone communities, some homeowners have seen premiums rise more than 600%.
In Central and Southern Oregon, policies that were once easy to renew are no longer being offered, leaving homeowners with fewer choices.
As private coverage disappears, more families are turning to the state’s insurer of last resort, which has grown by 50% since 2022.
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Oregon Cannot Afford This, Especially Now
In 2025, Oregon declared an affordable housing insurance premium emergency and allocated millions to help pay for premiums.
Passing a bill that raises premiums doesn’t make sense, as that would further exacerbate the affordability crisis in Oregon.
The consequence? Rural families, retirees, working people, and vulnerable families could face skyrocketing insurance rates or even policy non-renewals that will stretch wallets even further.
“Insurance premium inflation will cause irreparable harm to existing affordable housing communities.” - Gov. Kotek’s Housing Production Advisory Committee report.
