Buying car insurance in Hawaii: rates, requirements and how to find the best policy

When most people think of cars and Hawaii, they think of renting a convertible on a vacation and letting the island breezes rush through their sun-bleached hair. But if you happen to live in Hawaii, having a car and ensuring its proper protection is part of everyday life. Buying car insurance in Hawaii requires attention to rates, requirements and some keys to getting the best policy.

Like a handful of other states, Hawaii is considered a “no-fault state” for the purposes of car insurance coverage. Essentially what this means is that drivers are required to carry insurance that will cover the cost of accidents, regardless of who is at fault, and there is no need to take a case to court to prove whom the responsible party in an accident is. Even in a no-fault state like Hawaii, it is important to know the minimum legal requirements and consider adding additional levels of coverage.

The most basic auto insurance coverage requirements for state of Hawaii are:

• $20,000 bodily injury liability for a single person
• $40,000 bodily injury liability total for one or more persons
• $10,000 property damage liability

Because the state is no-fault, drivers must also carry a minimum of  $10,000 in personal injury protection (PIP) coverage.

Though not required by law, the state of Hawaii sets the following suggested levels of additional coverage for drivers and car owners in the state:

• $20,000/$40,000 in underinsured motorist coverage
• $20,000/$40,000 in uninsured motorist coverage

Car owners who purchase a package of coverage that meets these minimum state requirements and suggestions will find that there overall rates will be lower. Speaking of rates, while many products and services are cost more in Hawaii due to its rather remote location, car insurance doesn’t appear to be one of those. The National Association of Insurance Commissioners estimates that the average cost of auto insurance in Hawaii is actually one of the lowest in the country. Other surveys place the state in the middle of the pack overall, though with the additional requirement of PIP coverage, that average can flatten out. Estimates for the average annual costs for car insurance coverage for the average Hawaii car owner/driver range from between $1,350 to $1,750.

Some of the factors that will go into the calculation of your specific car insurance costs for Hawaii car insurance coverage include:

• Age – drivers over the age of 25 are considered to pose less of a risk than those younger than 25
• Gender – based on current trends and actuarial tables, females are generally considered safer drivers and will pay less, on average, than their male counterparts
• Marital status – a married person will sometimes pay less than an unmarried person, depending on the policy plan and the insurance company
• Location – rural areas statistically poses less risk to drivers than crowded city settings and your coverage costs may reflect that
• Vehicle type – there are certain types, styles and models of vehicles that cost more to insure than others due to cost of replacement parts and labor required during any repair work
• Driving record – if a driver has had several accident claims in the past, they are seen to be more likely to be involved in a future accident than someone who has never been in one at all

Though many of the items listed above are beyond your control, there are steps you can take to help lower the cost of your Hawaii car insurance coverage:

• Theft protection devices – be sure to let your insurance company know if you have a security system or alarm in your vehicle as many companies offer discounts for these devices
• Multiple policies – if you list several vehicles under the same policy or combine other types of insurance (homeowner's, renter's, life, etc.) this often results in a discount on all policies
• Lowering limits – while you want to consider this step carefully, lowering your coverage limits will generally result in a lower monthly cost; however, choosing a limit that is too low may result in a larger out-of-pocket expense later on (and you will always want to remain in compliance with the state’s minimum coverage requirements)
• Increasing deductible – setting a larger deductible will also result in a lower monthly cost as you agree to pay a higher amount in the event that an accident claim is made

Though there are many things to consider while obtaining car insurance in Hawaii, it does not have to be a confusing process. Getting the right advice will help and Reply! can be of service by connecting you with local insurance professionals experienced in the type of coverage you will need to drive well-protected in paradise.