Car insurance laws in Hawaii are a little different than in some states. For starters, Hawaii is a no-fault state. There are, however, some complications in how it works. First of all, the no-fault part applies to injuries but not to property damage. All drivers are still required to have minimum liability coverage, but the state also requires injury protection, also known as PIP coverage. In contrast, many wrongful or tort states require only basic liability coverage.
The financial fallout from auto accidents can be bad enough even with insurance, but they are often unmanageable without insurance. From medical bills to property damage, car accidents can be financially perilous for those without sufficient coverage. Looking at some of the numbers below can help highlight why states generally require auto insurance for all drivers.
Car Insurance Laws in Hawaii
Car Insurance Requirements in Hawaii specify that all drivers must carry minimum liability insurance and bodily injury insurance. Hawaii’s minimum auto insurance includes basic liability, which covers damage to others and their property. In contrast, personal injury coverage covers injuries to yourself and your passengers. Hawaii being a no-fault state, lawsuits between drivers can only take place in the event of serious injuries.
- Minimum Liability
- Bodily injury: $20,000 per person and $40,000 per accident
- Property damage: $10,000 per accident
- Injury Protection
Liability insurance in Hawaii
Like most states, Hawaiian insurance laws require some level of minimum liability coverage. However, this coverage may not always be enough. Although it complies with the law, it can still leave drivers with more costs than they can afford. Due to limits surrounding minimum coverage, some drivers choose to expand their coverage limits or add other types of policies to their auto insurance plan.
Collision and comprehensive insurance are two of the most popular types of coverage. Each of these can add layers of financial protection that are missing from a minimum coverage plan. Comprehensive insurance provides financial protection against damage your vehicle sustains when not in use. For example, if it were to be damaged while parked in the driveway or in a parking lot. Collision insurance covers damage to your car while in use, such as hitting a tree, another vehicle, curb or other objects while driving. A lot of best car insurance companies offer these types of fonts.
Is Hawaii a no-fault state?
Hawaii is a no-fault state. For Hawaii drivers, this means your own insurance will pay your medical bills and those of your passengers in most accidents. In Hawaii, no-fault rules only apply to personal injury, not property damage. Suppose you are responsible for an accident. In this case, your policy will pay your medical expenses and the other driver’s property costs. Specifically, your personal injury protection will cover medical expenses for you and your passengers. At the same time, your property damage liability will pay for damage to the other driver’s vehicle.
Penalties for driving without insurance in Hawaii
Driving without insurance in Hawaii is illegal and can result in serious consequences. For the first offense, drivers will be fined $500. For each violation after the first committed within five years of the previous violation, the driver will be subject to a fine of at least $1,500. The first offense may result in a three-month license suspension, while further offenses may result in a one-year license suspension. Repeat offenses can even lead to imprisonment.
While car insurance can be expensive, driving without insurance in Hawaii can be more expensive. If you are responsible for an accident and you are not insured, you could end up with unmanageable costs. Not only does your policy protect you against financial loss in the event of an accident, it protects you against those legal fines and penalties.
Additional Car Insurance Coverage Options in Hawaii
Although Hawaii auto insurance laws require basic liability and injury protection, there are also other types of auto coverage to consider. Some drivers choose to extend beyond the mandatory coverage to gain additional financial security. Two of the most popular types of auto coverage are medical payment coverage and uninsured motorist coverage.
- Coverage of medical expenses covers the medical expenses of the insured driver and his passengers. These policies generally have no deductible and follow the driver instead of the vehicle. Tracking the driver in this way means this policy can help with medical bills even when they are not the result of a car accident.
- Although all drivers in Hawaii are required by law to have at least minimal coverage, not all do. To deal with the risk of uninsured drivers, some people buy coverage for uninsured or underinsured motorists. These policies can replace the other driver’s basic liability coverage when they are at fault but do not have enough insurance to meet their financial obligation.
Frequently Asked Questions
What is the best car insurance company in Hawaii?
Auto insurance can be a very nuanced and personalized industry, which makes these questions difficult to answer conclusively. The best auto insurance companies vary by driver. Different drivers have different needs but also receive varying rates. Consider starting with the Bankrate guide to the best car insurance companies in hawaii for 2021.
What is the cheapest car insurance in Hawaii?
Car insurance companies offer different rates for different drivers. This discrepancy is due to the way they calculate the rates. Providers use many detailed personal data points to determine premiums. Variables such as age, location, vehicle, driving record, insurance score, etc. are generally used. Nevertheless, some companies in Hawaii offer cheaper rates on average than others.
How much does car insurance cost in Hawaii?
Hawaii is a bit below the national average for car insurance costs. In Hawaii, on average, a comprehensive insurance policy costs $1,127 per year. In contrast, the average annual cost in the United States for a full coverage plan is $1,674. A minimum coverage plan in Hawaii costs an average of $345 per year.