Hawaii Car Insurance
All residents and the state of Hawaii are required to carry continuous automobile insurance. Any driver with a registered vehicle in the state who fails to comply with this mandatory law, may be punished in the form of hefty fines or short-term suspensions.
Anyone new to the state or not familiar with insurance laws should take the time to learn about coverage requirements, optional coverage types, auto insurance companies in Hawaii, and discounts available in the state.
Read this guide to Hawaii car insurance, and learn everything that you need to know. You can also use the FREE comparison tool located above to guarantee you're getting the best deal!
Coverage Requirements in the State of Hawaii
Each state has its own a unique set of required automobile coverages that all drivers must carry. While auto insurance companies can set their own rates, these rates must be approved by the insurance commissioner to protect consumers from high rate charges that are not justified.
All companies that are licensed to do business in the state, must offer the coverage of that is required by Hawaii officials at a minimum.
Hawaii is referred to as a no fault state. This means that your own insurance company will pay for your bills if you are injured or your vehicle was damaged in a covered accident. Fault is still used to assess risk and surcharge rates. You must carry personal injury protection (PIP) to satisfy compulsory insurance laws.
All policyholders must have at least $10,000 in personal injury protection benefits to cover themselves and their passengers. In addition to this, drivers must carry $20,000 per person and $40,000 per accident and bodily injury as well as $10,000 per accident in property damage.
Consequences for Failing to Carry Insurance
If you fail to comply with the insurance laws and Hawaii, you will be cited. If convicted of driving without insurance, you will have a misdemeanor on your record. You will also be ordered to pay a fine and to file proof of financial responsibility (SR22) with the Department of Motor Vehicles which can cost money through your insurer.
If you are a repeat offender, you may have your license or your registration suspended. A reinstatement fee must be paid before you can have your driving privilege reinstated. People who are convicted several times may even face up to six months jail time.
It is much more affordable to simply carry Hawaii car insurance so that you can protect your reputation, your assets, and get peace of mind as you drive.
What Types of Auto Insurance Coverage Is Available in Hawaii?
Carrying mandatory coverage will satisfy the insurance laws, but you should consider all of your options when you are building a policy. You have the option to purchase higher limits and optional coverage types that will provide you with extra protection on the road.
Here are some of the benefits that you can elect to carry:
Additional Personal Injury Protection Benefits
While some may feel comfortable with $10,000 in coverage for medical and rehabilitative costs, many will raise this limit for more protection. You can even elect to receive more benefits so that you can recover from a loss when you were injured and cannot return to work.
All insurance companies in Hawaii must offer you the option to add wage loss, death benefits, alternative healing options, managed care, funeral benefits, and the option to choose a deductible to keep your rates down.
Uninsured/Underinsured Motorist
According to the Insurance Journal, one in eight drivers in the state of Hawaii are not insured. In order to protect yourself against the damage that is caused by an uninsured driver, insurance companies offer Uninsured Motorist protection.
UM will pay for you and your passengers' medical bills if you are hit by an uninsured driver and hurt. It will also kick in when the driver has lower limits that will not cover all of your bills. All companies must offer you this form of coverage in Hawaii. You do have the option to reject this coverage in writing if you do not want to pay additional premiums.
Comprehensive and Collision
If your vehicle is financed released, you are required to carry what is referred to as a full coverage. Full coverage is technically carrying both comprehensive and collision cover.
Comprehensive is physical damage coverage that will pay for losses that are caused by fire, theft, vandalism, explosion, hail, wind, and other non-moving perils. Collision will pay for damage sustained in a moving claim up to the fair market value of the vehicle.
Rental Car
You also have the option to purchase rental car cover as an add-on to your policy that has full coverage. This will only pay for the cost of a replacement car while your vehicle is being repaired because of damaged sustained in a covered loss.
You will select the limit per day, which will determine how much you will pay.
How to Select the Best Insurer in Hawaii
Not all insurers licensed to do business in Hawaii are created equal. You will need to do your homework if you want to select a top-rated insurer to do business with.
It is especially important to research a company in a no-fault state because you will be entrusting your insurer to pay your medical bills and approve your claims quickly so that you can rehabilitate and receive medical care. The very first step to researching an insurer is verifying their financial standing through a credit ranking agency like AM Best.
Once you verify the company has the money to pay claims, you can proceed and look up complaints or reviews.
Review Complaints and Consumer Reviews
Complaints that are filed against insurers licensed to do business in Hawaii are public record. Using these public records can help you steer clear of companies who are known to delay the claims handling process. By using the Complaint History Search tool through the Department of Commerce and Consumer Affairs you can see if there are official complaints on file and if the department disciplined the insurer or the case was closed.
You can cross any company with a pattern of complaints off of your list. Once you have done this, use a third-party review site to see if there is a pattern of poor customer service so that you can avoid companies who do not offer excellent service.
What Discounts Are Available in the State?
As you shop for coverage, you should always look for discounts. All insurers in Hawaii offer discounts to applicants who qualify. You should ask your agent or review a rate comparison tool to apply discounts that you believe that you are eligible for.
Here is a list of some of the discounts you may be able to lower your premiums with:
Multi-car or Extra Car
If you have multiple cars on your policy, you may receive multi-car discounts on each car. Some companies will offer what is called an extra car discount as well. This means that you have more cars than drivers on the policy and the car that is not primarily used by a driver will have a lower rating.
Driver Education
Young drivers and mature drivers may be able to lower their rates by taking an optional driver education class that is approved by the insurer. Each discount is applied for a period of 3 years and can be renewed if the driver is eligible.
Accident-free or Good Driver
If you have no accidents or tickets on your record, you may receive a Good Driver discount.
You must have at 3 years of driving experience and maintain a clean record to maintain this discount. A violation or at-fault accident will lead to a loss of the discount and a surcharge.
Good Student
Full-time students who are 25 or younger and maintain an acceptable Grade Point Average will receive a Good Student Discount each year when proof is submitted.
Your child's detailed transcript will be considered acceptable proof by most insurers.
Low Mileage and Pleasure Usage
If you drive for pleasure around the island and you do not drive more than 3000 miles per year, you may qualify for low mileage ratings that can save money. The insurer will verify that you still qualify for a low mileage rates every year by asking for an updated odometer reading.
As a consumer, it is important to know what you are buying before you buy it. Now that you know more about Hawaii car insurance, you can go into the process of comparison shopping equipped to make the best purchasing decision.
Buying a plan that will protect you while you are on the road from a reputable company that will offer great service is key. Make sure to use a comparison tool, enter your information, and find the perfect insurance plan today.
Make sure you compare all of your options by using the FREE search tool located at the bottom of this page.