Auto Insurance In Hawaii: Minimum Coverage Requirements

In the state of Hawaii, it is essential to have motor vehicle insurance to own a car. Hawaii has specific requirements for auto insurance coverage, and drivers must carry a certain amount of liability insurance to comply with the law. The minimum coverage includes bodily injury liability, property damage liability, and personal injury protection. This means that drivers need to have insurance that covers medical expenses and property damage in the event of an accident, regardless of who is at fault. The specific minimum requirements for auto insurance in Hawaii are important to understand to ensure that drivers are properly insured and compliant with the law.

Minimum liability coverage

In the state of Hawaii, drivers are required to carry a minimum amount of auto insurance coverage. This includes liability insurance, which covers injuries and property damage caused to others in an accident. The minimum liability coverage limits in Hawaii are often referred to as 20/40/10, which can be broken down as follows:

• $20,000 in bodily injury coverage per person: This is the maximum amount that your insurer will pay towards injuries caused to another driver or their passengers in an accident where you are at fault.
• $40,000 in bodily injury coverage per accident: This is the total amount available from your insurer to pay for all injuries caused in a single accident where you are at fault.
• $10,000 in property damage coverage per accident: This is the limit of what your insurance company will pay to fix property that is damaged in an accident for which you are at fault.

It is important to note that these limits are the minimum required by the state of Hawaii. Depending on your circumstances, you may want to consider purchasing additional coverage to ensure you are adequately protected. For example, if you are financing or leasing your vehicle, your bank or leasing company may require full coverage, including physical damage coverage.

Additionally, Hawaii is a "no-fault state," which means your insurance company will pay for your injuries and your passengers' injuries up to the personal injury protection (PIP) limit, regardless of who is at fault in the accident. The minimum PIP coverage required in Hawaii is $10,000 per person.

Hawaii takes insurance requirements seriously, and there are consequences for driving without the necessary coverage. These can include fines, license suspension, and even jail time for repeat offenses.

Personal injury protection (PIP)

In Hawaii, the minimum amount of PIP coverage required is $10,000. This means that if you are injured in a car accident and require medical treatment, your PIP coverage will pay up to $10,000 towards those expenses. If the cost of medical care exceeds this limit, health insurance may cover the additional expenses.

PIP offers several benefits to accident victims. It allows them to obtain coverage for their medical expenses and lost income much sooner than if they were to file a personal injury lawsuit against the at-fault driver's insurance company. Litigation can often take months or even years to resolve, whereas PIP benefits can be claimed and received much faster. Additionally, PIP reduces the number of lawsuits filed in Hawaii's courts, which can help expedite the cases that do go to court.

However, it's important to note that PIP has some limitations. It does not cover non-monetary losses, such as pain and suffering, and it also does not cover vehicle or property damage. If you need compensation for these types of losses, you would need to go through the at-fault driver's insurance company.

While PIP is a mandatory component of auto insurance in Hawaii, it is important for drivers to understand its limitations and consider additional coverages to ensure they have adequate protection in the event of an accident.

Liability coverage

In the state of Hawaii, liability coverage is legally required for all drivers. This coverage pays the other driver if you are found at fault in an accident, covering their injuries, lost wages, and damage to their vehicle. The minimum coverage requirements in Hawaii are $20,000 for bodily injury per person, $40,000 for bodily injury per accident, and $10,000 for property damage per accident. These limits are often referred to as 20/40/10.

The minimum coverage requirements in Hawaii are meant to protect both you and other drivers. While these limits can be increased for a moderate increase in your premium, they may not provide enough coverage in the event of a serious accident. For example, the $20,000 limit for bodily injury per person can be reached quickly if the injuries are severe. Similarly, the $40,000 total for all injured parties may not be sufficient if multiple people are facing injuries. Additionally, the $10,000 coverage for property damage may not be enough to replace a new vehicle in the US.

As such, it is recommended to increase your liability coverage limits to the highest amount you can reasonably afford. This is especially important if you have significant assets or own a home. By having adequate liability coverage, you can protect yourself financially and ensure that you can cover the costs of any damages or injuries you may cause in an accident.

In addition to liability coverage, Hawaii also requires drivers to have personal injury protection (PIP) with a minimum limit of $10,000 per person. This coverage pays for your medical expenses and those of your passengers, regardless of who is at fault in the accident.

Collision and comprehensive coverage

While collision and comprehensive coverage are not required by Hawaii state law, they are still important supplements to your liability insurance. Collision coverage pays for damage to your vehicle if you hit an object or another car, regardless of fault. Comprehensive insurance, on the other hand, covers non-collision damage, such as weather and fire damage, as well as reimbursing you for car theft and damage from collisions with animals.

Although not mandatory, you may still want to consider purchasing collision and comprehensive coverage for your vehicle in Hawaii. This is especially true if you lease your vehicle or have taken out a loan to purchase it. Lenders and leasing companies typically require both types of insurance to protect their investment in your car. It is also worth noting that comprehensive insurance is advisable given Hawaii's unique climate and geographic conditions, which increase the risk of weather-related damage and natural disasters.

If you decide to purchase collision and comprehensive coverage, you will need to select a deductible amount. The deductible is the amount deducted from the insurance payout when you file a claim. Common deductible amounts include $250, $500, $1,000, and higher. Choosing a higher deductible will lower your insurance premium, but you will have to pay more out-of-pocket if you need to make a claim.

The cost of collision and comprehensive coverage will depend on various factors, including your age, driving history, the value of your vehicle, and your location. It is always a good idea to shop around and compare rates from different insurance companies to ensure you get the best deal.

Uninsured and underinsured motorist coverage

In Hawaii, uninsured motorist coverage (UM) covers you when you are injured by another driver who does not have car insurance. Underinsured motorist coverage (UIM) covers you when the other driver does not have enough insurance to cover your injuries and damages.

In Hawaii, it is illegal to drive without car insurance, but unfortunately, many people still do so. As a result, it is recommended that all drivers have adequate UIM coverage. The minimum UIM coverage you can purchase is $20,000 per person, but it is recommended that you have at least $100,000 in UM and UIM coverage.

One of the benefits of having UM/UIM coverage is that it can help cover your medical bills and other injury-related expenses, up to the limits of your coverage. This is especially important because your health insurance may not be enough to cover hospital stays or long-term medical care. UM/UIM coverage can also help cover lost wages and non-economic damages like pain and suffering, which health insurance does not cover.

In some cases, your insurance policy may include UM/UIM coverage, even if you have not specifically opted into it. However, to be eligible for UM/UIM benefits, you will need to prove that the other driver was at fault. Insurance companies are often reluctant to pay out large settlements, so it is essential to have an experienced attorney to help you negotiate for fair coverage.

If your UM/UIM insurance claim is denied, an attorney can help you file an appeal or seek compensation through an alternate route. They can review the details of your policy and negotiate with the insurance provider to get you the coverage you need.

Frequently asked questions