Hawaii Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in Hawaii?

• In Hawaii, all motorists must carry minimum levels of liability coverage. The minimum levels are $20,000 per person for bodily injury, $40,000 per accident for bodily injury, $10,000 per accident for property damage, and $10,000 personal injury protection (PIP).
• Before registering any vehicle in Hawaii, you must show proof of coverage.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts)?

If you buy automobile insurance in Hawaii, your policy must include minimum liability coverage of:

$20,000 per person for bodily injury
$40,000 per accident for bodily injury
$10,000 per accident for property damage
and
$10,000 personal injury protection (PIP)

What are the Rental Car Insurance Requirements?

In Hawaii, all vehicles must carry at least the minimum liability coverages. If your current auto insurance or credit card does not cover car rentals, you must purchase insurance from the rental company. A copy of your rental agreement outlining the insurance coverage should be carried at all times. It is important to note that if you off-road, you will be in violation of your rental agreement. If you violate your rental agreement, this means that you void ALL your insurance, no matter who it's with, including rental insurance you are using from back home.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Under Hawaii’s No Fault system, the state does not require its citizens to carry Comprehensive and Collision insurance or Uninsured/Underinsured Motorist coverage, but the state does require that motorists carry a minimum $10,000 personal injury protection (PIP).

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the Hawaii, it is a common practice for insurance companies to exclude a driver from an auto insurance policy for a variety of legitimate reasons under the law. Such exclusions must be stated in the policy or by endorsement. The driver’s coverage is not valid while a specifically excluded driver is allowed to drive the vehicle, so it is important to be aware of all policy driver restrictions. Additionally, because exclusions in Hawaii auto insurance policies can be ambiguous, it is important to review your insurance policy carefully before signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

In Hawaii, if you allow your insurance to lapse, this means that you are driving without insurance. You must carry the minimum levels stated under Hawaii law and there are no exceptions this rule. Insurance companies will notify the corresponding county government if your insurance cancels or lapse. Fines for driving without insurance are stiff. For the first offense, you will pay a fine of $1,000 and for a second offense, you could pay up to $3,000. Other penalties include suspension of your driver’s license, imprisonment, and you might have to surrender your registration certificate and license plates. 

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In Hawaii, Personal Credit History can be used to determine rates and offers for certain auto insurance products. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

Hawaii is a No Fault state, but a rather confusing one. It is important to keep in mind that it is “No Fault” only when it comes to bodily injury. Additionally, Hawaii has a monetary threshold of $5,000. This means that if the medical bills you incur exceed $5,000, you may be able to file a claim for damages against the other driver if they are found to be at fault in the accident. Under Hawaii’s No Fault system, the state does not require its citizens to carry Comprehensive and Collision insurance or uninsured motorist insurance, but the state does require that motorists carry a minimum $10,000 personal injury protection (PIP).

What is the average auto insurance premium in Hawaii? As of what year?

As of 2006, Hawaii’s resident’s average insurance premium was approximately $853, the 15th most expensive in the nation. This was up 0.8% from the previous year. The national average was $817.

Sources

Insurance Information Institute
Hawaii Department of Commerce and Consumer Affairs