Hawaii's No-Fault Auto Insurance Law: Understanding The Requirements

Hawaii is a no-fault state, which means that your motor vehicle insurance company will pay the bills for your injuries and your passengers' injuries up to the personal injury protection benefits (PIP) limit. The state's no-fault insurance laws require all drivers to purchase a minimum of $10,000 in personal injury protection (PIP) to cover injuries and lost income resulting from car accidents. These benefits are paid regardless of who is at fault for the crash, up to the policy limits.

What does PIP cover?

Personal Injury Protection (PIP) insurance is mandatory in Hawaii. It covers medical expenses and lost wages for you and your passengers if you're injured in an accident, regardless of who is at fault.

PIP covers medical bills for you and anyone covered by your policy. This includes medical services and medication, surgical services and hospital expenses, rehabilitative costs, and treatment in accordance with a recognised religion. It also covers lost income and essential services benefits, such as household services like childcare, house cleaning, or yard work.

In the state of Hawaii, you can also add the following as optional PIP benefits:

• Wage loss: If you are unable to work due to your injuries, wage loss coverage ensures compensation for lost income. You may receive up to $500/month, capped at $3,000 per accident.
• Death benefit: In the event of your death from an accident, your surviving spouse, dependents, or estate will receive a minimum of $25,000. Coverage is also available up to $100,000.
• Funeral expenses: This benefit helps cover funeral and burial expenses for any covered person who passes away due to injuries from the accident. The starting benefit is $2,000, but higher amounts are also available.

It's important to note that PIP doesn't cover damages to your vehicle, theft of your vehicle, or damage to someone else's property. For these types of coverage, you would need to add comprehensive car insurance, auto collision coverage, or property damage liability coverage, respectively.

What does PIP not cover?

Hawaii is a no-fault state, which means that your insurance company will pay for your injuries and your passengers' injuries up to the personal injury protection (PIP) limit. PIP insurance covers medical expenses, lost wages, and other related costs if you or your passengers are injured in an auto accident, regardless of who is at fault.

However, there are some important exceptions to what PIP covers. PIP insurance does not cover:

• Bodily injuries to the other driver and their passengers.
• Injuries sustained while driving for work purposes.
• Injuries sustained while committing a crime.
• Damage to someone else's property.
• Damage to your vehicle.

In addition, Hawaii's basic PIP doesn't cover lost wages, amounts paid for replacement services like household or lawn care, death benefits, or funeral expenses. However, you can add these as optional PIP benefits for an additional premium.

What are the minimum insurance requirements in Hawaii?

Hawaii is a no-fault state, which means that each driver is required to pay for their own and their passengers' medical expenses up to the limits of their personal injury protection (PIP) coverage. This coverage is mandatory and must be at least $10,000 per person. PIP covers medical costs resulting from an accident, regardless of fault.

In addition to the required PIP insurance, for as long as your vehicle is registered in Hawaii, you must also insure it with at least the following minimum liability insurance coverages:

• $20,000 for bodily injury to, or the death of, one person in an accident
• $40,000 for bodily injuries to, or the deaths of, two or more people in an accident
• $10,000 for property damage in an accident

Hawaii law also requires drivers to have a valid insurance ID card in their vehicle at all times. This can be written or electronic.

If you don't have insurance on your motor vehicle, you must surrender the registration certificate and license plates to the county director of finance. You will not be able to drive the vehicle.

What are the penalties for driving without insurance in Hawaii?

Driving without insurance in Hawaii is considered a serious offence and can result in various penalties, including fines, community service, license suspension, vehicle impoundment, and even jail time. The specific penalties depend on whether it is a first-time or repeat violation.

For a first-time violation, the penalties include a fine of at least $500, a minimum of 75 to 100 hours of community service in lieu of the fine, and a license suspension for a minimum of three months or until proof of insurance is provided. The court may waive the suspension if the offender agrees to purchase a non-refundable insurance policy covering their vehicle for at least six months.

For a second violation within a five-year period, the penalties become more severe. The fine increases to a range of $1,500 to $5,000, and the community service requirement increases to 200 to 275 hours. The license suspension period is extended to one year, and the offender may also face up to 30 days in jail.

If an individual is caught driving without insurance multiple times within a five-year period, Hawaii imposes even stricter penalties. In addition to the fine, community service, and license suspension, the offender may face vehicle impoundment and vehicle registration suspension or revocation.

It is important to note that these penalties apply regardless of fault in an accident. If an uninsured driver is at fault, they will be responsible for paying any damages, including car repairs and medical bills, out of pocket.

What are the benefits and limitations of PIP?

Personal Injury Protection (PIP) insurance is a requirement in Hawaii as it is a no-fault state. This means that your insurance company will pay for your injuries and your passengers' injuries up to the PIP limit, regardless of who is at fault. PIP insurance covers medical expenses, lost wages, and other related costs if you or your passengers are injured in an auto accident.

Benefits of PIP

• It covers medical expenses, including ambulance services, medical and surgical treatment, hospital stays, nursing, medication, medical supplies, X-rays, rehabilitation, prostheses, dental care, optical treatment, and chiropractic services.
• It covers lost wages if you are unable to work due to your injuries.
• It can cover funeral expenses and survivor benefits in the event of death.
• It can cover replacement services for tasks you cannot perform due to your injuries, such as childcare, house cleaning, and lawn care.
• It guarantees the right to medical benefits for Hawaiian motorists.
• It provides prompt payment for car accident injuries, regardless of who caused the accident.

Limitations of PIP

• It does not cover bodily injuries to the other driver and their passengers.
• It does not cover injuries if you are driving for work purposes or if you are committing a crime.
• It does not cover damage to someone else's property or your own vehicle.
• It does not cover general damages for injuries like pain and suffering, emotional distress, or disfigurement.
• It has limited tort rights, restricting your ability to sue for car crash injuries.
• It does not cover what are called "general damages" for injuries like pain and suffering, emotional distress, and disfigurement.

Frequently asked questions