Oregon Towers Must Provide Proof of Insurance

Oregon’s Department of Transportation Services (DMV) is alerting insurance producers that write towing companies of a new requirement for towers to maintain proof of insurance.

In 2007, the state Legislature passed Senate Bill 116, which regulates towing company practices. There were a number of changes for towers including notice requirements, disclosure of pricing and restrictions on monitoring of parking facilities, which became effective on Jan. 1, 2008.

Under the new law, the tower must provide an original certificate of insurance to the DMV at the time they apply for or renew their towing business certificate. The certificate of insurance must include the policy number, expiration date, vehicle identification number, show that the person is insured by a policy that provides the minimum amounts and limits of coverage required by ORS825, and be issued by an insurer licensed in Oregon.

The law also increased amount of insurance coverage the tower must maintain for cargo transported by the person from $15,000 to $50,000. And insurance companies must provide the department with a written notice of cancellation of a tower’s insurance policy.

Notices of cancellation should be sent to:

To view the bill detailing requirements, visit: www.leg.state.or.us/bills_laws/. Select Senate Bill 116 in either html or pdf format. Questions also can be directed to DMV Vehicle Programs at 503-945-5243.

Topics Oregon