Hawaii Auto Insurance: What You Need To Know

Auto insurance is a necessity for car owners in Hawaii, as the state has some of the strictest laws regarding the factors that determine insurance rates. Driving without insurance can result in a fine of up to $5,000 and a license suspension. Hawaii is a no-fault state, meaning that in the event of an accident, each person involved turns to their own insurance for coverage, regardless of who is at fault. The state has minimum insurance requirements, including bodily injury liability, personal injury protection, and property damage liability. The minimum coverage amounts are $20,000 per person and $40,000 per accident for bodily injury liability, $10,000 per accident for property damage liability, and $10,000 per person for personal injury protection. These minimum requirements are set to increase in January 2026, with higher coverage amounts providing better financial protection for drivers.

Minimum insurance requirements

In the state of Hawaii, it is essential to have motor vehicle insurance to own a vehicle. The minimum insurance requirements in Hawaii are as follows:

• Bodily Injury Liability Coverage: $20,000 per person and $40,000 per accident. This covers injuries caused to others in an accident.
• Basic Personal Injury Protection: $10,000. This covers your medical costs due to an accident, plus lost wages and death benefits, regardless of who is at fault.
• Property Damage Liability Coverage: $10,000 per accident. This covers damage caused to other people's property in an accident.
• Uninsured/Underinsured Motorist Coverage: $20,000 per person and $40,000 per accident. This covers your medical expenses and property damage caused by an uninsured or underinsured driver. However, this coverage can be rejected in writing.

It is important to note that these minimum requirements are subject to change. In July 2024, the state passed Act 138, which will increase the required minimum coverage limits. Starting January 1, 2026, the new minimum requirements will be:

• Bodily Injury Liability Coverage: $40,000 per person and $80,000 per accident.
• Property Damage Liability Coverage: $20,000 per accident.

Lender requirements

If you are financing or leasing a vehicle in Hawaii, your lender will typically require you to carry both collision and comprehensive insurance. This protects their investment in your car and shields them from financial loss if your car is damaged or written off.

Collision insurance covers your vehicle's repair expenses or a full replacement if it is damaged in a collision. Comprehensive insurance is similar but covers repairs or replacement for a broader range of damage scenarios, including collisions, bad weather damage, fire, and theft.

While these coverages are not mandated by Hawaii state law, they are essential to meet lender requirements when financing or leasing a vehicle. It is also worth noting that collision and comprehensive insurance are optional for vehicle owners who have paid off their loans.

In addition to collision and comprehensive insurance, lenders in Hawaii may also require you to carry liability insurance and personal injury protection coverage. These coverages protect you financially in the event of an accident, ensuring you can cover the costs of damages or injuries you may cause to others.

The minimum coverage limits for liability insurance in Hawaii are:

• $20,000 for bodily injury liability per person
• $40,000 for bodily injury liability per accident
• $10,000 for property damage liability per accident

Personal injury protection coverage has a minimum limit of $10,000 per person in Hawaii.

It is important to note that lender requirements for auto insurance in Hawaii may vary, so it is always best to consult with your lender directly to understand their specific requirements and ensure you have the necessary coverage in place.

Individual needs

When it comes to auto insurance in Hawaii, it's important to consider your individual needs to ensure you have the right coverage for your specific situation. Here are some factors to keep in mind:

Remote Areas and Roadside Assistance

Hawaii has some remote areas, and if you frequently travel to these locations, consider adding roadside assistance to your policy. This can provide valuable peace of mind and assistance in the event of a breakdown or emergency.

Student Discounts

If you have a teen who is planning to attend college, you may want to look for insurance companies that offer distant student discounts. This can help reduce your overall insurance costs while your child is away at school.

Driving Record and High-Risk Drivers

Your driving record can impact your insurance rates and coverage options. If you have accidents or tickets on your record, be sure to disclose them when shopping for insurance. Some companies specialise in providing coverage for high-risk drivers, so look for insurers that cater to these specific needs.

Customisable Coverage

Every driver is unique, and your insurance policy should reflect that. Look for insurance companies that offer flexible coverage options and allow you to customise your policy to fit your budget and specific needs. For example, you may want to increase your coverage limits beyond the state minimums for added protection.

Bundling Opportunities

Consider whether you can bundle your auto insurance with other types of insurance, such as home, condo, or renters insurance. Many insurance companies offer discounts and added benefits when you bundle your policies, helping you save money and get more comprehensive protection.

Discounts and Added Extras

Insurers often provide various discounts and added extras, such as built-in accident forgiveness, emergency towing, and more. Explore these options to see if you qualify for any discounts or additional benefits that can enhance your coverage and save you money.

Remember, the best auto insurance policy in Hawaii is one that meets your unique needs and provides the coverage you require at a price that fits your budget. Don't hesitate to shop around, compare quotes, and ask questions to ensure you're getting the most suitable coverage for your individual circumstances.

No-fault state

Hawaii is a no-fault state, meaning that if you own a vehicle in Hawaii, you must have a no-fault auto insurance policy that satisfies Hawaii law. This law requires drivers to carry a minimum of $10,000 per person in basic personal injury protection (PIP) coverage for each car. PIP coverage pays for the medical expenses of those injured in an accident, regardless of who is at fault. This coverage extends to anyone who was driving the car with your permission, was a passenger in the car, or was injured as a pedestrian or while riding a bicycle, electric scooter, or moped.

Hawaii's basic PIP coverage does not include lost wages, replacement services, death benefits, or funeral expenses. However, you can purchase additional PIP coverage to include these benefits. It is important to note that PIP does not cover "general damages," such as pain and suffering, emotional distress, or disfigurement. To obtain compensation for these types of injuries, you would need to file a claim or lawsuit against the at-fault driver, but only if your injuries meet one of Hawaii's severity thresholds.

In addition to PIP coverage, Hawaii law also requires a minimum of $20,000 per person/$40,000 per accident in bodily injury liability coverage and $10,000 per occurrence in property damage liability coverage. These coverages are meant to protect you from financial liability if you are at fault in an accident and cause injuries or property damage to others.

As a no-fault state, Hawaii simplifies the process for drivers to obtain compensation after an accident. Instead of filing a personal injury lawsuit against the negligent driver, motorists can simply file a claim with their own insurance company, allowing them to receive medical treatment without waiting for a lengthy legal process. However, it is important to note that the minimum insurance requirements may not be sufficient for serious injuries, and additional legal action may be necessary to obtain full compensation.

Insurance companies in Hawaii

Auto insurance in Hawaii is mandatory and requires drivers to have bodily injury (BI) liability, personal injury protection (PIP), and property damage (PD) liability coverage. The minimum coverage requirements are $20,000 per person and $40,000 per accident for bodily injury liability, $10,000 per accident for property damage liability, and $10,000 for personal injury protection. Uninsured/underinsured motorist coverage is also offered and can be rejected in writing.

There are several insurance companies serving the state of Hawaii, including:

• GEICO: GEICO is the largest auto insurer in Hawaii and offers affordable coverage with great customer service. They provide fast and free car insurance quotes to ensure drivers meet the minimum requirements for Hawaii auto insurance coverage.
• Progressive: Progressive offers customizable policies to fit drivers' budget and coverage needs. They provide various coverage options, minimum requirements, and available discounts.
• State Farm: State Farm has a strong presence in Hawaii, with 22 agencies across the islands. Their local agents are familiar with the coverages drivers need in the community. They offer multiple lines of insurance, making them a good option for those looking to keep all their insurance needs under one roof.
• Allstate: Allstate is a good choice for rideshare drivers in Hawaii, as they offer rideshare coverage through their Ride for Hire program. They also have a strong digital presence with a mobile app and online policy portal.
• Farmers: Farmers stand out for their extensive list of coverage options, including new car replacement, original equipment manufacturer (OEM) coverage, and unique options for classic car owners and hobby mechanics. They have above-average scores in the J.D. Powers 2024 U.S. Insurance Digital Experience Study.
• Island Insurance: Island Insurance is the state's only locally owned P&C insurer and has been protecting Hawaii families and businesses for over 80 years. They offer benefits and discounts, flexible payment options, and superior local claims service.
• The General Insurance: This company is a licensed car insurance agency based in Nashville, Tennessee, and is known for offering auto insurance to high-risk drivers.
• PURE Insurance: PURE Insurance is a property and casualty insurer specializing in coverage for customers with a high net worth.
• Amica: Amica is one of the oldest car insurance companies in the U.S., having opened for business over a century ago.
• First Insurance Company of Hawaii: This company is known for its prompt and satisfactory claims handling, as reflected in their commitment to their customers.
• Pyramid Insurance: Pyramid Insurance has served the people of Hawaii since 1987 and has grown to become one of the largest locally owned insurance companies in the state.

Frequently asked questions