Teen Driver Insurance in Oregon

Tojocu Editorial Team | Last verified: April 2026

Before drivers younger than 18 can obtain a full, unrestricted driver's license, Oregon requires them to hold a provisional instruction permit and then a provisional driver license. The state has created a graduated licensing program designed to give new, young drivers the training they need to operate a vehicle safely. The graduated licensing program is a three-stage system: Stage 1 is the Learner Permit for age 15 and up, Stage 2 is the Intermediate Permit at age 16, and Stage 3 is the Full License at age 17. Each licensing step has its own requirements and restrictions, with restrictions applying for the first year or until the driver turns 18 years old, whichever comes first.

Licensing Timeline

To apply for a provisional instruction permit, a person must be at least 15 and younger than 18 years of age. To apply for a provisional driver license, a driver must be at least 16 and younger than 18 years old. Teens must hold an instruction permit for at least 6 months before applying and must complete at least 50 hours of supervised driving with an ODOT-approved traffic safety education course OR at least 100 hours of supervised driving. Teens must pass a drive test, though DMV may waive the drive test if a teen has completed the ODOT-approved driver education course.

GDL Restrictions

For the first 6 months, provisional license holders cannot have passengers under 20 years of age unless they are a member of their immediate family, and no driving between midnight and 5 AM unless for specific exceptions. For the second 6 months, they cannot have more than 3 passengers under 20 years of age unless they are a member of their immediate family and no driving between midnight and 5 AM unless for exceptions. Exceptions to driving between midnight and 5 a.m. include driving between home and work, driving between home and a school event for which there is no other transportation available, driving for employment purposes, or when accompanied by a licensed driver who is at least 25 years of age. It is unlawful to operate a motor vehicle while using any mobile electronic device, including texting or talking on a cell phone even with hands-free accessory, using an mp3 player, or operating any other portable device.

Permit holding period: <cite index="3-49,10-21">6 months or until age 16, whichever comes later</cite>. Nighttime restriction: <cite index="6-4,8-16,8-17">Between midnight and 5 a.m. for first year</cite>. Passenger restriction: <cite index="6-2,8-16">First 6 months: no passengers under 20 years of age unless immediate family member</cite>. <cite index="6-3,8-17">Second 6 months: no more than 3 passengers under 20 years of age unless immediate family members</cite>. Cell phone restriction: <cite index="8-14,8-15">Unlawful to operate a motor vehicle while using any mobile device, including texting, talking, even with hands-free accessory, using mp3 player, or operating any other portable device</cite>. Supervisor requirement: <cite index="3-35,3-36,10-6">Licensed driver at least 21 years old seated in front seat next to permit holder</cite>. Nighttime exceptions include: <cite index="6-4">driving between home and place of employment</cite>, <cite index="6-4,10-13">driving between home and a school event for which there is no other transportation available</cite>, <cite index="10-14">driving for employment purposes</cite>, <cite index="10-15,6-6">when accompanied by a licensed driver who is at least 25 years of age</cite>. Passenger exceptions include: <cite index="6-2">members of holder's immediate family</cite>, <cite index="6-7">when in vehicle with instructor as part of certified traffic safety education course</cite>, <cite index="6-7">certain employment-related transportation</cite>.

Insurance Requirements

Oregon law requires all drivers to carry liability, personal injury protection, and uninsured motorist insurance coverage, and even drivers holding a learner's permit or provisional driver's license must carry proof of minimum insurance requirements. The minimum requirements are $25,000 per person and $50,000 per crash for bodily injury to others, $20,000 per crash for damage to others' property, $15,000 per person for personal injury protection, and $25,000 per person and $50,000 per crash for uninsured motorist coverage. Oregon requires each driver to pay for their own medical expenses after an accident, as well as those of their passengers, up to the limits of their Personal Injury Protection coverage, which takes care of medical costs regardless of fault. Oregon is not a no-fault insurance state but is a fault-based state, where the party found at fault for damage or injury resulting from an accident is financially liable for them.

Minimum liability limits: $25,000 bodily injury per person / $50,000 per accident / $20,000 property damage. Insurance system: at-fault. Personal Injury Protection (PIP) is required at $15,000. Uninsured/underinsured motorist coverage is required. <cite index="12-5">$25,000 per person; $50,000 per crash for bodily injury</cite>.

Insurance Considerations for Teen Drivers

Teen drivers typically face significantly higher insurance premiums due to their inexperience and higher risk profile. Oregon's requirement for Personal Injury Protection and uninsured motorist coverage provides additional financial protection but also increases costs. Families can often reduce premiums by adding teens to existing policies rather than purchasing separate coverage, taking advantage of good student discounts, and completing approved driver education courses which may qualify for additional rate reductions.

Practice Paths to Licensure

Option 1: With approved driver education course. 50 supervised hours required; driver education required; road test required.

Option 2: Without driver education course. 100 supervised hours required; road test required.

Fees

Permit fee: $30. License fee: $64. <cite index="22-20,22-23">Knowledge test $7, skills test $45</cite>.