Hawaii's Auto Insurance: Understanding No-Fault Policies And Claims

Hawaii is a no-fault state, which means that each driver must have personal injury protection (PIP) insurance coverage. This type of insurance covers medical expenses, lost wages, and essential services related to injuries sustained in a car accident, regardless of who caused the collision. The minimum PIP coverage requirements in Hawaii are $10,000 per person per accident for medical benefits and 85% of net income loss and reasonable expenses for services for three years after the accident, up to $1000 per month for work loss benefits.

Hawaii's no-fault insurance system

Hawaii is a no-fault state when it comes to car accidents. This means that each driver is required to pay for their own medical expenses, as well as those of their passengers, up to the limits of their Personal Injury Protection (PIP) coverage. PIP coverage takes care of the medical costs that you and your passengers incur in an accident, regardless of fault.

Hawaii law requires at least $10,000 per person in basic PIP coverage for each car. This covers medical expenses, lost wages, and essential services related to injuries sustained in a car accident. For additional premiums, you can buy optional PIP insurance that pays benefits not covered by basic PIP, such as lost wages, death benefits, and funeral expenses.

While Hawaii has a no-fault system for PIP insurance, this only covers economic damages related to medical expenses, lost wages, and essential services. For non-economic damages, such as pain and suffering, emotional distress, and loss of enjoyment of life, injured parties can only pursue claims against the at-fault driver if their injuries meet a specific "serious injury" threshold.

This "serious injury" threshold includes permanent loss of use of a body organ, member, function, or system; permanent serious disfigurement; and significant impairment. If a car accident victim's injuries meet this threshold, they may be eligible to pursue a personal injury lawsuit against the at-fault driver to seek compensation for non-economic damages, in addition to economic damages covered by PIP insurance.

It is important to note that Hawaii's no-fault auto insurance system is intended to simplify the process for drivers who wish to obtain compensation after an accident. Instead of filing a personal injury lawsuit against a negligent driver, motorists can simply file a claim with their own insurance company, allowing accident victims to claim compensation quickly.

Personal Injury Protection (PIP)

While PIP provides quick compensation for accident victims, it does not cover non-monetary losses like pain and suffering, nor does it cover vehicle and property damage. If your injuries or losses exceed the PIP policy limits, you may be able to file a personal injury claim against the at-fault party. To do so, your injuries must meet certain severity thresholds, such as significant and permanent loss of bodily function or serious, permanent disfigurement.

Hawaii's no-fault system simplifies the process of obtaining compensation after an accident, allowing residents to receive medical treatment without waiting for insurance companies to determine fault. However, the minimum insurance requirements may not be sufficient for those with serious injuries, and additional coverage may be necessary.

Claiming against the at-fault driver

Hawaii is a no-fault state when it comes to car accidents. This means that each driver is required to pay for their own medical expenses, as well as those of their passengers, up to the limits of their Personal Injury Protection (PIP) coverage. However, there may be instances where you want to claim against the at-fault driver for additional compensation.

When you're injured in a Hawaii auto accident, you first bring a claim under your own Personal Injury Protection (PIP) insurance. You can only go after the at-fault driver for compensation if your injuries meet one of Hawaii's injury severity thresholds.

Hawaii's basic PIP coverage includes:

• Medical expenses for people who've been hurt in an accident.
• $10,000 per person in basic PIP coverage for each car.

However, basic PIP does not cover:

• Lost wages.
• Amounts paid for replacement services like household or lawn care.
• Death benefits or funeral expenses.
• "General damages" for injuries like pain and suffering, emotional distress, disfigurement, etc.
• Property damages, like the cost to repair or replace your damaged car.

To get compensation for these, you have a couple of options:

• File a claim against the at-fault driver's auto insurance: You can pursue the responsible driver to recover all your damages, including those not covered by PIP.
• Make a claim under your own policy: If you have collision coverage, you can use it to repair or replace your damaged vehicle. This option might be faster than waiting for compensation from the at-fault driver's insurer, but you'll have to pay your collision deductible.

In addition to the above, you can file a personal injury claim against the at-fault driver if you meet certain thresholds, such as:

• Your PIP payments were $5,000 or more.
• You suffered a serious or permanent injury (e.g., disfigurement) that caused immense emotional distress.
• Your injuries exceeded the threshold, making it difficult to prove a claim against the at-fault driver's insurance company.
• You have missed work due to your injuries, resulting in lost income and other financial hardships.
• The insurance company is stalling or denying your claim.
• The at-fault driver is denying liability.

In these situations, it is highly recommended to consult with an experienced Hawaii car accident attorney who can help you navigate the legal process and ensure you receive fair compensation.

Minimum insurance requirements

Hawaii is a no-fault state when it comes to car accidents. This means that each driver is required to pay for their own medical expenses, as well as those of their passengers, up to the limits of their Personal Injury Protection (PIP) coverage.

The minimum insurance requirements in Hawaii are as follows:

• Personal Injury Protection (PIP): $10,000 for you and your passengers. This covers medical expenses and rehabilitative costs.
• Bodily Injury Liability: $20,000 per person and $40,000 per accident for anyone else injured in the crash.
• Property Damage Liability: $10,000 per occurrence.

These are the minimum requirements, and it is recommended that drivers consider increasing their coverage levels, especially if they have significant assets or own a home. The minimum coverage may not be sufficient in the event of a serious accident.

In addition to the above, drivers in Hawaii are also required to carry Uninsured/Underinsured Motorist coverage. This can be purchased at a minimum of $20,000 per person and $40,000 per accident. This coverage can help in the event that a driver is hit by someone without insurance or with insufficient insurance to cover the costs of the damages.

Other optional types of insurance that drivers may want to consider include:

• Comprehensive coverage: This covers physical damage to your vehicle resulting from weather events, animal collisions, or theft.
• Collision coverage: This pays for damages resulting from a collision with another car or a stationary object, regardless of fault.
• Loan/Lease Payoff coverage: Also known as gap coverage, this pays the difference between the actual cash value of your vehicle and what you still owe on your loan if your vehicle is totalled.
• Wage loss coverage: This helps if an accident renders you unable to work and covers lost income.
• Death and Funeral Expense coverage: This helps to pay for funeral expenses in the event of a fatal car accident.
• Rental Car Reimbursement coverage: This covers the cost of a rental car if your vehicle is damaged and unable to be driven.
• Roadside Assistance coverage: This reimburses you for towing costs, flat tire fixes, and overnight stays in some situations.

It is important to note that these are the state-mandated minimum insurance requirements. If you are financing or leasing your vehicle, your bank or leasing company may require additional coverage, such as full coverage or physical damage coverage.

Optional insurance coverage

As a no-fault state, Hawaii requires all drivers to carry a minimum amount of motor vehicle insurance, including personal injury protection (PIP) benefits. This means that if you are injured in a crash, your PIP benefits will cover your injuries regardless of who is responsible for the accident. However, there are optional insurance coverages you can purchase to provide extra protection. Here is a list of some of the more common optional car insurance coverages:

• Comprehensive coverage protects your vehicle from physical damage resulting from weather events or non-collision incidents (although it does cover animal collisions). It also covers your vehicle in the event of theft.
• Collision coverage pays for damages resulting from a collision with another car or a stationary object, regardless of fault.
• Loan/Lease Payoff coverage, also known as gap coverage, helps if you finance your vehicle and it is totalled in a wreck. It pays the difference between the actual cash value (the value of your car with depreciation) and what you still owe on your loan.
• Wage loss coverage helps if an accident renders you unable to work by covering lost wages.
• Death and funeral expense coverage helps pay for funeral expenses in the event of a fatal car accident.
• Rental car reimbursement coverage pays towards the cost of a rental car if your vehicle is damaged and unable to be driven. The limits vary by carrier.
• Roadside assistance coverage can reimburse you for towing costs, flat tire fixes, and even overnight stays in some situations, although this may vary by carrier and insurance plan.
• Uninsured/Underinsured Motorist Bodily Injury coverage helps with medical expenses if you are injured by a driver with no insurance or insufficient insurance to cover your losses. This can include hospital bills and rehabilitation costs.
• Uninsured Motorist Property Damage coverage is similar to the above but helps cover the cost of damage to your vehicle or property if the at-fault driver cannot pay.

In addition to these common optional coverages, you may also be able to purchase alternative health coverage for treatments such as naturopathy, acupuncture, and faith healing.

Frequently asked questions