For many Oregonians, managing household budgets has become a delicate balancing act. The cost of living continues to climb, and unfortunately, essential expenses like car insurance are often part of that upward trend.
This trend is often gradual, as in the case of an upcoming 3.4% rate increase from Garrison Property and Casualty Insurance Company, a USAA subsidiary. But just because the increase is small doesn’t mean you need to accept it. There’s still time to shop around and avoid rising rates.
What’s Happening?
Effective October 3, 2025, Garrison Property and Casualty Insurance Company is set to implement an average increase of 3.4% on its auto insurance premiums for renewal business in Oregon.
This adjustment will increase total written premiums by over $2 million across the state– an average increase of $68 per policy. It’s set to impact roughly 28,270 policyholders.
Shop now and save!
Why Insurance Premiums Are on the Rise
Insurance companies, at their core, are in the business of assessing and managing risk. When their costs increase, insurers must adjust their rates to remain financially sound and continue providing reliable coverage. Several key factors contribute to rising premiums in auto insurance, particularly in states like Oregon:
Soaring Repair and Replacement Costs: Modern vehicles are increasingly complex, packed with sophisticated technology from advanced safety sensors to intricate computer systems. While these features enhance safety, they also make repairs significantly more expensive. A seemingly minor fender bender can now involve replacing costly components, driving up the overall cost of claims. Furthermore, supply chain disruptions can lead to delays and increased prices for auto parts, and the cost of labor for skilled technicians continues to rise.
Increased Frequency and Severity of Accidents: Unfortunately, some areas are experiencing a rise in both the number of accidents and the severity of injuries sustained in those accidents. Factors such as distracted driving, increased traffic volume as people return to pre-pandemic commuting habits, and even more aggressive driving behaviors can contribute to more frequent and more impactful collisions. More accidents naturally lead to more claims, which necessitates higher premiums to cover these payouts.
Rising Medical Expenses: Beyond vehicle damage, the cost of medical care for accident-related injuries continues to climb. Hospital stays, surgical procedures, rehabilitation, and long-term care can be incredibly expensive, directly impacting the payouts insurers must make.
Inflation Across the Board: Just like the cost of everyday goods and services, inflation impacts every aspect of the insurance industry. This includes the cost of administrative operations, legal services, and even the rental cars provided to policyholders while their vehicles are being repaired. Insurers must factor these broader economic shifts into their rate calculations.
Severe Weather Events: Oregon, like many other states, can be susceptible to various natural events, from ice storms to wildfires and heavy rainfall. An increase in claims due to these widespread natural disasters can impact rates across a region as insurers need to cover these significant losses.
Changes in Driving Habits and Demographics: Shifts in population density, commuting distances, and the age distribution of drivers in a particular area can all influence risk assessments. For example, if a region sees an influx of new, less experienced drivers, the overall risk profile may increase.
These factors create a complex environment for insurance companies, requiring them to constantly analyze data and adjust rates to reflect the current reality of risk and cost. While this 3.4% increase from USAA might be unwelcome news, understanding these underlying dynamics is the first step in managing your insurance costs.
How Oregon Drivers Can Mitigate Cost Increases
Even if your insurance company is gearing up to raise rates, you don’t necessarily need to brace for higher costs. Instead, there are several proactive strategies you can employ to offset these increases and find affordable coverage.
Re-Quote Your Policy: If your policy renewal date falls after October 3, 2025, contact Garrison before that date. By asking for a new quote or an early renewal based on your current policy, you might be able to lock in a rate that doesn’t fully reflect the upcoming increase for your next policy term. This is not always a guarantee, but it’s definitely worth exploring.
Shop Around with Other Carriers: Even if you’ve been a loyal USAA member for years, the insurance market in Oregon is competitive. Different insurance companies have different risk assessment models and pricing structures. What might be an increase for one insurer could still be a more affordable rate from another. Use a comparison tool to easily obtain quotes from at least three to five other insurance providers in order to secure the best deal.
Review and Adjust Your Coverage: Your insurance needs can change over time. Now is an excellent opportunity to assess your current policy:
Increase Your Deductible: If you have an emergency fund and can comfortably afford a higher out-of-pocket expense in the event of a claim, increasing your collision and comprehensive deductibles will almost certainly lower your premium.
Drop Unnecessary Coverage: For older vehicles (generally those 10+ years old) that are fully paid off, consider if collision and comprehensive coverage are still financially prudent. If your car’s market value is less than the annual cost of these coverages plus your deductible, it might be more economical to drop them and save that money for potential repairs or replacement.
Adjust Liability Limits: While you should always carry adequate liability coverage, review your current limits. If your financial situation has changed, you might explore adjusting limits, but do so cautiously and with a full understanding of the risks.
Maximize All Available Discounts: Don’t leave money on the table! Contact your current and prospective insurers and ask for a comprehensive list of all available discounts. Common discounts include:
Multi-Policy/Bundling Discounts: Insuring your car and home (or renters) insurance with the same company.
Safe Driver/Accident-Free Discounts: For maintaining a clean driving record over a certain period.
Good Student Discounts: For young drivers who maintain good grades.
Low Mileage Discounts: If you drive fewer miles than average (e.g., working from home).
Anti-Theft Device Discounts: For vehicles equipped with alarms or tracking systems.
Defensive Driving Course Discounts: Completing an approved driver safety course.
Payment Discounts: For paying your premium in full annually or setting up automatic payments.
Vehicle Safety Feature Discounts: For cars with advanced safety features.
Maintain a Clean Driving Record: This is the most enduring and impactful strategy for keeping your insurance rates low. Avoiding accidents and traffic violations directly signals to your insurer that you are a lower risk, which translates to better rates over time.
Improve Your Credit Score: In Oregon, your credit-based insurance score can influence your rates. A higher credit score often correlates with lower insurance premiums, as insurers associate it with greater financial responsibility.
Explore Usage-Based Insurance Programs: Some insurers offer programs that monitor your driving habits (e.g., mileage, braking, acceleration) via a telematics device or app. If you’re a safe, low-mileage driver, these programs can offer significant discounts.
Your Path to Affordable Car Insurance in Oregon
Don’t wait for your insurance renewal offer to find out about an upcoming rate adjustment. Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.