Guide to Car Insurance in Hawaii

Hawaii’s population is 1.44 million, and nearly 66 percent of these residents have driver’s licenses, with the Federal Highway Administration reporting 943,173 licensed drivers total. Each driver must meet the state’s minimum insurance requirements to operate vehicles legally.

Despite being one of the most expensive states to live in, Hawaii’s car insurance costs are reasonable. The average cost of full coverage is $1,431, which is 26 percent less than the national average. Minimum coverage costs an average of $456, about 17 percent less than the national average. We’ve compiled this guide to help you understand Hawaii’s insurance and driving laws.

Editor’s note: We have updated this page with the latest laws from the state of Hawaii regarding insurance, registration, teen drivers, and electronic device use while driving.  

Minimum Requirements for Car Insurance

Hawaii requires no-fault insurance if you’re driving a vehicle in the state. No fault means that your insurance must have personal injury protection (PIP) coverage to pay for your and your passengers’ injuries. The minimum coverage limit is $10,000 per person.

In addition to your personal injury protection, you must have minimum liability insurance. The minimum bodily injury coverage per person is $20,000, with $40,000 as the minimum bodily injury per accident. You must also have at least $10,000 in property damage liability.¹

How Much Coverage Do I Need?

While you must have the minimum insurance coverage to meet state guidelines, the state guidelines don’t necessarily mean that you will have the coverage that you need.

If you lease or finance a car, check the lease or loan agreement. You are likely required to have at least $100,000 in bodily injury protection per person, $300,000 in bodily injury protection per accident, $50,000 in property damage protection. The lender sets these requirements, not the state. Your lender will likely also require you to carry comprehensive and collision coverage.

You may also consider higher coverage limits if you have more assets. Someone is more likely to sue you if an accident results in serious injuries or property damage and you have significant assets. If you own a house and other assets, consider increasing limits to $250,000 in per-person bodily injury, $500,000 in per-accident bodily injury, and $100,000 in property damage to better protect yourself.

Whether or not you have high liability limits, consider getting full coverage. When you protect your own car too, you have full coverage.

Comprehensive coverage and collision coverage are the two add-ons you need in Hawaii to get full coverage. Comprehensive coverage pays for losses where you don’t collide with another property; those losses may be from theft, natural disasters, or vandalism. Collision coverage pays to repair or replace your car if you damage it in an at-fault accident.

Hawaii doesn’t require you to have uninsured/underinsured motorist coverage, but you can add it if you wish to provide more protection than the PIP coverage offers. Nine percent of Hawaii drivers don’t have insurance, leaving a gap in coverage for those on the road.²

There are other optional coverages to consider. Rental car coverage pays for you to get a rental car when your car is in the shop due to a comprehensive or collision claim. For just a couple of dollars more, most insurance carriers also offer roadside assistance that helps you when you’re stranded on the side of the road. Insurance policies in Hawaii also offer death benefits of up to $100,000 and funeral benefits of $2,000.

The Average Rates of Car Insurance in Hawaii

The average cost of car insurance in Hawaii is $1,431 annually for full coverage and $456 annually for minimum coverage.

However, car insurance rates in Hawaii vary widely depending on the coverage and the place you live. If you have full coverage, expect to pay more than you would for minimum. You might pay as little as $345 a year for minimum coverage.

Aside from your location, several other factors affect your car insurance rates. These factors include your age, how much driving you do, and your driving history. Younger drivers and those with a poor driving record pay more than older drivers or those with a clean driving record.

Insurance Companies in Hawaii

You have a lot of options for buying car insurance in Hawaii:

• AAA
• Allstate
• DTRIC
• Farmers
• GEICO
• Island
• Liberty Mutual
• Progressive
• State Farm
• USAA
• We recommend comparing quotes from at least three companies before buying a policy.

How to Get the Lowest Rates in Hawaii

Saving money is always a top priority. Here are some ways to reduce your car insurance premium:

1. Inquire about discounts. See if you qualify for one or more of the common discounts, which include bundling policies, insuring multiple cars, being a good student, and driving safely.
2. Raise your deductible. When you raise your deductible, you lower your premium. Choose a deductible that you can afford, but that keeps premiums reasonable.
3. Reduce coverage. Try lowering your liability limits and eliminating some optional coverage that you don’t want or need.

Proof of Car Insurance in Hawaii

If a police officer stops you or if you are in an accident, the officer or other party will ask you to provide proof of insurance. If you don’t have a physical or digital copy of your insurance, officers will issue a $500 citation for the first offense. Subsequent tickets are $1,500 to $5,000. You can also go to jail for up to 30 days and have your registration revoked for driving without insurance.⁴

Hawaii State Laws

We’ve compiled the most important driving laws in Hawaii that you need to be aware of.

No-Fault State

Hawaii is a no-fault state for auto insurance. When you have no-fault insurance, your insurance pays for the medical bills of you and your passengers. The state requires each driver to have at least $10,000 in PIP coverage. If the PIP coverage is not enough to pay for the medical bills, then the other party’s liability coverage kicks in.

No-fault coverage rules apply only to the bodily injury component of coverage. The driver who is at fault in the accident pays for property damage. This makes Hawaii a modified comparative state where accident fault that exceeds 50 percent makes damages recoverable.

For example, if both parties are found equally liable for the accident, neither party can seek damages from the other. Only a driver who caused over 50 percent of the accident would have to compensate the other driver.

Uninsured Motorist Coverage

In Hawaii, uninsured/underinsured motorist coverage is optional. If you have this coverage, you can stack it. Stacking means that you get more coverage when you have multiple cars with uninsured motorist coverage.

For example, if you have two cars in the household, each with $25,000 per-person bodily injury coverage and $50,000 per-accident bodily injury coverage for uninsured motorists, you would add the two policies together. That would give you $50,000 per-person coverage and $100,000 per accident coverage.

Hawaii DUI Laws

Hawaii is very strict with its driving under the influence (DUI) laws. It takes a blood alcohol content (BAC) of 0.08 percent to get a DUI charge. The DUI will stay on your driving record for five years with a one year license suspension.

If your BAC is higher than 0.15 percent, the state will suspend your license for a minimum of one year with up to 5 days in jail. Fines range from $150 to $1,000.⁵

For a first offense, you need to use an ignition interlock device for one year. A second offense requires the interlock device for five years.⁶

Seat Belt Laws

Seat belt laws in Hawaii are primary offense citations, meaning that officers can stop and cite drivers in Hawaii for not wearing a seat belt exclusively. They don’t need another offense to write the ticket. All passengers must wear seat belts.⁷

The ticket amount depends on the county where you receive the ticket.

The Hawaii child passenger restraint law requires all children under the age of 8 to be under proper child restraint at all times. Tickets for violating this law range from $100 to $500, depending on how many offenses the driver has had.⁸

Distracted Driving Laws in Hawaii

Hawaii has distracted driving laws that ban all drivers from using handheld devices and texting while driving. There is a $250 fine for violating this law, but the fine goes up to $300 if a police officer catches someone in a school or construction zone.⁹

Teen Driving Laws

Hawaii utilizes graduated licensing for teen drivers. A graduated license is for drivers ages 15 1/2 to 17 and is a three-stage program.

The first stage is the instructional permit stage, available to any teen at least 15 1/2 years old. Teen drivers in this stage must drive with licensed drivers who are at least 21 years of age. If the teen driver is operating a vehicle between the hours of 11 p.m. and 5 a.m., the adult next to them must be a parent or guardian. Permits are good for one year, with renewals given 30 days before the expiration date.

The second stage is the provisional license stage, which starts when the driver reaches the age of 16. It lasts until the driver turns 18. Drivers must hold the instructional permit for at least 180 days and must complete a state-certified driver’s education course in order to take the road test. Once they pass the road test, they may not transport more than one person under the age of 18 unless the passenger is a household member.

Those with provisional licenses may not drive between 11 p.m. and 5 a.m. unless a parent or guardian is in the car with them. The exception to this rule is if the driver is driving to or from work or school.

The third stage is the full driver’s license stage. This stage does not restrict the driver. In order to get to this stage, the teen driver must be at least 17 years old, have no violations, and have had a provisional license for at least six months.¹⁰

Statute of Limitations for Claims

Hawaii has a statute of limitations for claims, the time after an incident in which you must file a claim so that insurance companies can process it. The statute of limitations is the same regardless of whether the claim is for property damage or bodily injury: two years.

Cancellation/Non-Renewal Notification Laws

Hawaii law states that an insurance company cannot cancel a policy that has been in force for at least 60 days unless you don’t pay your premium, you commit fraud on the application, or the state suspends your license. To cancel a policy, the insurance company must give you 30 days’ notice, no matter the reason for cancellation, like nonpayment. The same 30-day notice exists when the insurance company decides not to renew your policy at the end of its term.

Self-Insurance

Hawaii law allows drivers to meet financial responsibility laws by providing bonds of $90,000 to the Hawaii Department of Transportation.

Car Inspection Requirements

In order to renew your car registration, you must get an annual safety inspection. Certified gas stations and mechanics shops perform safety inspections for $25.

When you go for the safety inspection, you’ll provide your current proof of insurance. The safety inspection site will submit the proof of insurance verification and safety inspection certificate to the Department of Motor Vehicles. You will receive a certificate and sticker noting the expiration date of your safety inspection.

SR-22s

Hawaii requires an SR-22 to verify that you have motor vehicle insurance if the state has convicted you of certain offenses such as a DUI or driving without insurance. Your insurance carrier issues an SR-22. How long you need the SR-22 depends on the violation, though the average time is three years.

Defensive Driving

You can take a defensive driving course to reduce the points that you get on certain tickets. If your ticket has three to six points associated with it, you must take a defensive driving course. The course teaches you skills to help you avoid road hazards. Hawaii’s defensive driving courses are 16 hours long and available online or in person.

Serious Injury and Monetary Thresholds

The monetary threshold in Hawaii is $5,000. In other words, if your no-fault policy pays more than $5,000 in benefits, you can sue the other party. You may also sue if the injury is permanent or causes immense emotional stress.

Accident Reporting Requirements

In Hawaii, you must file an accident report with the police if you have an injury or property damage valued over $3,000. File reports immediately or face a possible $100 fine.

Price Discrimination

Hawaii prohibits the use of credit as a way to determine premium prices. It is one of seven states prohibiting this practice, which means that you don’t need to provide your Social Security number when buying auto insurance in Hawaii.

However, Hawaii does allow insurance carriers to use sex to determine rates. Carriers find that men are at higher risk, so men pay more for auto insurance in Hawaii.

When Is a Car Declared a Total Loss?

Hawaii requires that insurance carriers use a total loss formula to determine if the damage to the car is repairable. Total-loss vehicles with comprehensive or collision coverage get a lump-sum payment. The total-loss formula says that carriers total the car if the salvage value is less than the repair cost.

Contact Information

See below for pertinent contact information in Hawaii.

Department of Motor Vehicles

At the DMV, you can perform tasks such as registering your car, getting your license, filing an SR-22, and getting a copy of your car’s title. You can contact your local DMV online, over the phone, or by mail.

Now, follow these steps to register your car in Hawaii:

1. Visit a local Satellite City Hall or DMV Now Kiosk. You can find a location near you by county.
   • Honolulu: https://www.honolulu.gov/%E2%80%A6/sit%E2%80%A6/26204-services-and-locations#SCH
   • Hawaii: https://vehicleregistrationlicensing.as.me/schedule.php
   • Maui:
     • 110 Alaihi St., Suite 101
     • Kahului, HI 96732
   • Kauai: https://www.kauai.gov/Government/Departments-Agencies/Finance/Treasury-Division/Drivers-Licensing-and-Motor-Vehicles/Registration-Renewals
2. Obtain and complete an Application for Registration of Motor Vehicle for your county.
3. Obtain your proof of insurance and a safety inspection certificate.
4. Pay by check, cash (in person only), or credit or debit card. Registration costs depend on the year, make, and model of the car. Make checks payable to the county (e.g., City and County of Honolulu).

To renew a registration, either visit a location with your renewal notice or visit the online renewal portal for your county.

• Honolulu: http://www12.honolulu.gov/mvrreg/
• Hawaii: https://mvr.ehawaii.gov/renewals/lookup.html?county=hawaii
• Kauai: https://mvr.ehawaii.gov/renewals/lookup.html?county=kauai
• Maui: https://mvr.ehawaii.gov/renewals/lookup.html?county=maui

To get a copy of your title, you must visit a DMV office in person or mail the application. Here are the instructions if you choose to mail it:

1. Get the application form at https://www.honolulu.gov/rep/site/csd/onlineforms/cslmvr10.pdf and fill it out.
2. Write a check payable to the county (e.g., City and County of Honolulu) for $10.
3. Mail the completed application and check to this address:
   • Department of Motor Vehicles, Licensing & Permits
   • P.O. Box 30330
   • Honolulu, HI 96820

Insurance Commissioner

You can contact Hawaii’s insurance commissioner with questions or concerns about your insurance carrier.

• URL: http://cca.hawaii.gov/ins/
• Phone: 808-856-2790
• Mailing address:
  • Hawaii Department of Insurance
  • P.O. Box 3614
  • Honolulu, HI 96811

Cost of Car Repairs in Hawaii

Car repairs in Hawaii are on par with the national average of $383. The average repair cost is $381, with $136 for labor and $245 for parts.

Crime and Fatalities in Hawaii

Hawaii is above the national average for auto thefts, but below the national average for traffic fatalities.

Motor Vehicle Theft

Hawaii has fewer car thefts than average. According to the latest available data, in 2022 it ranked 38th in the country for car thefts, with an average of 183 thefts per 100,000 residents. The area

Motor Vehicle Fatalities

The Insurance Institute for Highway Safety tracked the number of traffic fatalities in each state in 2022. They reported 8.1 deaths per 100,000 population for a total of 116 fatalities in 2022.

Recap

Despite having a higher-than-average cost of living, the cost of insurance in Hawaii falls below the national average. You can get a policy for as little as $345 per year for state minimum coverage. Think about getting higher liability limits and full coverage for better protection for you and your car in at-fault accidents.