Hawaii Auto Insurance
Hawaii Auto Insurance
Hawaii is a no fault state, as opposed to a “tort” state. This means that when a driver has an accident, the car insurance policy pays medical expenses. All drivers in Hawaii are required to operate a vehicle with at least liability coverage.
Since Hawaii auto insurance policies cover personal injury regardless of fault, there are limitations to when you can sue someone if you are injured in an accident. Generally, only the severe injury cases are allowed suit according to Hawaiian insurance laws.
Required Auto Insurance Coverage in Hawaii
The State of Hawaii requires liability insurance and Personal Injury Protection (PIP). The minimum is 20/40/10, meaning drivers are required to carry $20,000 per person involved in an accident, $40,000 for all people involved, and $10,000 for property damages. $10,000 for PIP insurance is also required by the state of Hawaii.
The minimums are not the suggested amounts of coverage that drivers in Hawaii should carry. It is always advisable to increase coverage to protect yourself in the instance of a major accident, especially considering that your ability to recover damages in the event of an accident are rather limited.
Insurance companies offer add-ons for Hawaii auto insurance policies, including collision insurance, comprehensive coverage, uninsured motorist protection plans.
Hawaii Auto Insurance Rates
In the year 2003, Hawaii ranked 23rd in the country in amount of money spent annual on car insurance, averaging $774.39 per person. This was an increase from $699.99 per person from 1999. Also in 2003, Hawaii drivers paid on average $513.44 for liability coverage, $268.44 for collision coverage, and $98.85 for comprehensive coverage.
So how do insurance companies figure out auto insurance rates in Hawaii? Insurance companies figure out how much it would cost to insure the entire state, then determine the individual driver’s portion by using a formula with variables such as age, gender, location, type of car you drive, driving history, and even marital status. The location variable is especially influential for the various islands of Hawaii. In November of 2005, on Maui it was shown to cost $806 for coverage, while the same person would only have to pay $631 on Kauai through the same company (figures are based on clean record coverage through AIG).
Hawaii Auto Insurance Companies
Each insurance company calculates premium amounts differently, mainly because they also include the cost to do business in the state as a variable of how much it would cost to insure the state. So to find the best Hawaii car insurance rate, you may have to shop around.
More Information on Hawaii Auto Insurance Coverage
Hawaii Insurance Division
P.O. Box 3614
Honolulu, Hawaii 96811
Phone: (808) 586-2790
For other Hawaii Insurance Resources, See:
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