The good news for 917,000 licensed Hawaiian drivers is that car insurance rates are cheap in this state. Both the average costs of state required minimum coverage and full coverage policies are much lower than the US average and full coverage policies are relatively more affordable. And perhaps because of it, the ratio of uninsured motorists is moderate at 9.3% and below the national average.
Automobile Insurance Laws in HI
Minimum Liability coverage requirements in Hawaii are;
- $20,000 for bodily injury per person.
- $40,000 total for bodily injury per accident.
- $10,000 for property damage.
Hawaii No-Fault Auto Insurance Requirements: Minimum coverage must include Personal Injury Protection (PIP) at;
- PIP: $10,000 per accident.
Hawaii is a no-fault state for car insurance, meaning your insurer pays for yours and your passengers’ injury costs, up to the Personal Injury Protection benefits limit. Lawsuits are limited unless injuries are serious. Damage to vehicles/property is the at-fault driver’s responsibility.
Hawaii prohibits credit checks for determining vehicle insurance premiums, unlike the large majority of states. Additionally, the state bans the use of gender in car insurance pricing.
Hawaii’s susceptibility to natural disasters like tsunamis, volcanic activity, hurricanes, floods, and earthquakes makes optional Comprehensive coverage advisable. Adding Collision and Comprehensive coverage to your auto insurance policy is usually affordable and safeguards against these perils, along with collisions. Motorists should check to make sure there are no exclusions for certain perils on their policies.
Car Insurance Prices in Hawaii
The average state required minimum coverage costs $344 in Hawaii and it is $278 cheaper than the national average. The average full coverage automobile insurance premium is $1,275, which is $739 lower than the US average. These are surprisingly low premiums and makes this state one of the cheapest states for vehicle insurance.
Cheap Automobile Insurers in Hawaii
Although average rates are fairly affordable, below companies offer highly competitive rates in this state. Finding the cheapest insurer for your circumstances not only reduces your premiums but gives you a chance to afford better coverage within your budget.
- Geico
- Island Insurance
- State Farm
- Farmers
These most competitive vehicle insurance companies offer low rates across the state including Honolulu. Car insurance rates in Hawaii show minimal variation across different cities. The difference between the most and least expensive locations is slight.
Notable Hawaii Automobile Insurance and Driving Facts
- Automobile insurers must offer Uninsured/Underinsured Motorist Bodily Injury Coverage (UM/UIM BI). The minimum is $20,000 per person and $40,000 per accident. This coverage can be declined in writing.
- Driving without insurance in Hawaii leads to fines, potential loss of driver’s license until proof of insurance is provided, and for repeat offenses, possible vehicle registration suspension, along with the risk of a jail sentence of up to 30 days.
- Hawaii doesn’t use a license-points system for driving offenses. Nevertheless, violations are still added to your driving record, visible to insurers. Serious or repeated moving violations can still lead to driver’s license suspension.
- Hawaiians enjoy quieter roads because beeping is considered impolite unless it is a real emergency.
- Living in a constant tourist destination is pricey due to high land costs and dependence on imported food, making HI one of the most expensive US states to reside in.
- According to Forbes, having a DUI on your record in Hawaii leads to an average auto insurance increase of 140%, which is one of the highest increases in the country.
- According to NHTSA, Hawaii has one of the highest estimated seat belt usage in the country with 94.3% of people buckling up.
- According to The Hartford, due to the limited space on a cluster of small islands, there is minimal availability for rural roads. Instead, roadways are concentrated around urban regions. As a result, a significant 82.2% of vehicle miles driven in Hawaii take place on urban roads.
Even with low premiums, motorists should actively seek even lower insurance quotes. It’s recommended to periodically shop around to maintain low rates. Failing to compare quotes could mean missing out on better coverage and more affordable prices in HI.