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Hawaii car insurance laws

Car traveling along winding road, Maui, Hawaii, America, USA
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Hawaii car insurance laws are a little different than in some states. For starters, Hawaii is a no-fault state. There are some complications to how this works, though. First off, the no-fault portion applies to injuries but not to property damage. All drivers are still required to carry minimum liability coverage, but the state also requires personal injury protection, also known as PIP coverage. In contrast, many at-fault, or torte states, require only basic liability coverage.

The financial fallout from auto accidents can be bad enough even with insurance, but it’s often unmanageable without insurance. From medical bills to property damage, car accidents can be financially perilous to those without sufficient coverage. Looking at some of the numbers below can help highlight why states usually require auto insurance for all drivers.

Car insurance laws in Hawaii

Hawaii auto insurance requirements specify that all drivers must carry minimum liability coverage and personal injury protection insurance. Hawaii minimum car insurance includes basic liability, which covers damages to others and their properties. In contrast, personal injury protection covers injuries to yourself and your passengers. Because Hawaii is a no-fault state, lawsuits between drivers may only occur in the case of serious injuries.

  • Minimum liability
    • Bodily injury: $20,000 per person and $40,000 per accident
    • Property damage: $10,000 per accident
  • Personal injury protection
    • $10,000 per person

Liability insurance in Hawaii

Like most states, Hawaii insurance laws require a certain level of minimum liability coverage. However, this coverage may not always be enough. While it satisfies the law, it can still leave drivers with more costs out of pocket than they may be able to afford. Because of the limitations around minimum coverage, some drivers choose to expand their coverage limits or add other policy types to their auto insurance plan.

Collision and comprehensive insurance are two of the more popular coverage types. Each of these can add layers of financial protection that are absent in a minimum coverage plan. Comprehensive insurance provides financial protection around damages that your vehicle sustains while not in use. For example, if it were to be damaged while parked in the driveway or a parking lot. Collision insurance pays towards those damages that your car sustains while it is in use—for instance, running into a tree, another vehicle, a curb or other objects while driving. Many of the top auto insurance companies offer these types of policies.

Is Hawaii a no-fault state?

Hawaii is a no-fault state. For Hawaii drivers, this means that it will be your own insurance that pays for you and your passengers’ medical bills in most accidents. In Hawaii, the no-fault rules only apply to injuries and not to property damage. Suppose you are at fault in an accident. In that case, your policy will pay for your medical expenses and the other driver’s property expenses. Specifically, your personal injury protection will cover medical bills for you and your passengers. At the same time, your property damage liability will pay towards the other driver’s vehicle damages.

Penalties for driving without insurance in Hawaii

Driving without insurance in Hawaii is illegal and can carry severe consequences. For the first offense, drivers will be fined $500. For each offense after the first that occurs within five years of the previous violation, the driver will be fined no less than $1,500. The first offense can see a three-month license suspension, while further violations can see a year of license suspension. Repeat offenses can even lead to imprisonment.

While auto insurance can be costly, driving without insurance in Hawaii can be more expensive. If you are at fault for an accident and uninsured, you could end up with unmanageable out of pocket costs. Not only does your policy protect you from financial loss in the case of an accident, but it protects against these legal fines and penalties.

Additional auto insurance coverage options in Hawaii

While Hawaii car insurance laws require basic liability and personal injury protection, there are other types of auto coverage to consider as well. Some drivers choose to expand beyond the mandated coverage to gain extra financial security. Two of the more popular types of auto coverage are medical payments coverage and uninsured motorist coverage.

  • Medical payment coverage covers the medical costs of the insured driver and their passengers. These policies generally do not have a deductible and follow the driver instead of the vehicle. Following the driver in this way means that this policy can help with medical bills even when they don’t result from an auto accident.
  • Although all drivers in Hawaii are required by law to carry at least minimum coverage, not all of them do. To deal with the risk of uninsured drivers, some people buy uninsured or underinsured motorist coverage. These policies can fill in for 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 highly nuanced and personalized industry, making these questions tricky to answer conclusively. The best car insurance companies vary between drivers. Different drivers have different needs but also receive varied 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?

Auto insurance companies offer different rates to different drivers. This variance is due to how they calculate rates. Providers use numerous points of detailed personal data to determine premiums. Variables like age, location, vehicle, driving record, insurance score and more are generally used. Even so, some companies in Hawaii offer cheaper rates on average than others.

How much does car insurance cost in Hawaii?

Hawaii is somewhat below the national average for auto insurance costs. In Hawaii, on average, a full coverage policy costs $1,127 per year. In contrast, the U.S. average annual cost for a full coverage plan is $1,674. A minimum coverage plan in Hawaii costs an average of $345 per year.

Written by
Joshua Cox-Steib
Insurance Contributor
Joshua Cox-Steib has two years of experience in writing for insurance domains such as Bankrate,, The Simple Dollar,, and more. His work has also been featured on such sites as MSN and BBB (Better Business Bureau). His insurance writing career has spanned across multiple product lines, with a primary focus on auto insurance, life insurance, and home insurance.
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Insurance Editor