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 the drivers medical expenses and your passengers’ injuries up to the personal injury protection benefits “PIP” limit. All drivers in Hawaii are required to operate a vehicle with at least liability coverage which includes Personal Injury Protection (PIP), bodily injury liability (BI) and per occupancy property damage liability (PO).

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.  Keep in mind you cannot sue or be sued unless there are serious injuries because “no-fault” applies to injuries only and not to damaged vehicles or property. The driver-at-fault in an accident is responsible for damages to vehicle and property. 

Required Auto Insurance Coverage in Hawaii

The State of Hawaii requires liability insurance and Personal Injury Protection (PIP). The minimum for liability insurance in Hawaii is 20/40/10, meaning drivers are required to carry $20,000 per person involved in an accident, $40,000per accident bodily injury liability, and $10,000 per occurrence property damage liability. Mandatory PIP coverage must include protection for your and your passengers of $10,000 per person. This pays for your medical and rehabilitative costs.

The State of Hawaii also recommends optional coverage’s and options you may purchase. These optional auto insurance coverage’s and options include: collision and comprehensive, uninsured “UM” and underinsured “UIM” coverage’s, wage loss, alternative care, death benefits (coverage’s range from $25,000 to $100,000, funeral benefits (coverage is $2,000), PIP deductible and PIP managed care.

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

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For other Hawaii Insurance Resources, See:

• Hawaii Health Insurance
• Hawaii Home Insurance

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