Best car insurance in Hawaii in 2023

Best car insurance companies in Hawaii

According to average proprietary premium data from Quadrant Information Services, the average cost of a full coverage policy in Hawaii is $1,275 per year; minimum coverage averages $344. However, to find the best car insurance in HI, Bankrate also evaluated third-party scores from the J.D. Power 2022 U.S. Auto Insurance Claims Study, digital tool functionality, AM Best financial strength ratings and more. We used all of this information to create a Bankrate Score, out of a possible five points, that could help you identify which companies are right for you. 

Based on our research, the best Hawaii auto insurance could come from Geico, USAA, State Farm, Allstate and Farmers.

How Bankrate chose the best car insurance companies in Hawaii 

First, our insurance editorial team analyzed average premiums sourced from analytics company Quadrant Information Services. However, our time in the field has taught us that the best insurance isn’t always the cheapest. 

In addition to average rates, we reviewed other important metrics such as third-party customer satisfaction scores and discount availability. Using this information, we assigned each company a Bankrate Score. The Scores are on a scale of 0.0 to 5.0. The higher the Bankrate Score, the more highly rated the company was in each scoring category. We hope that our holistic scoring method provides our readers with what they need to make informed decisions as they shop for new coverage.

How much is car insurance in Hawaii?

Luckily for those in Hawaii, car insurance in the Aloha State is much lower than the national average. The average cost for a full coverage car insurance policy in Hawaii is $1,275 per year, with minimum coverage at $344 per year. For comparison, the national average rates are $2,014 and $622, respectively.

Hawaii is situated in the Pacific Ocean, over 2,000 miles from the U.S. mainland. However, for the sake of comparison, let’s review the average rates for some of its closest neighbors: Alaska and California. Alaska’s average full coverage premium is $1,946 per year; its minimum coverage is $421. California’s average premiums are also much higher than Hawaii’s, with full coverage coming in at $2,291 annually and minimum at $636.  

Hawaii may enjoy lower rates than Alaska and California due to its year-round temperate weather (possibly leading to a lower claim frequency). Additionally, Hawaii has strict laws on what factors car insurance companies can use to determine your premium, likely affecting average rates. In Hawaii, your credit score, age, marital status and gender cannot affect your premium. California has similar laws but still allows insurance companies to consider your age and marital status. Alaska has no such limitations.

How to find the best car insurance in Hawaii

Car insurance is legally required in almost every state, Hawaii included. Outside of these requirements, a robust car insurance policy can help protect you from financial devastation in the event of an accident. When shopping for the best Hawaii car insurance, you may want to keep the following things in mind:  

Consider minimum insurance requirements in Hawaii

Knowing your insurance obligations is an important part of being a safe and responsible driver, and failure to maintain Hawaii state minimum liability limits can result in a ticket and a fine. Additionally, Hawaii is a no-fault state, so you may find it helpful to learn more about personal injury protection, or PIP coverage. 

Consider lender requirements

Because your lienholder has a financial interest in your vehicle, it wants to ensure that your car will be repaired after an accident. As such, most lienholders require full coverage as a provision of your loan agreement. If you’re leasing, you may also be required to carry certain liability limits. To avoid expensive force-placed insurance, you may want to review your finance documents carefully, and when in doubt, a conversation with a licensed agent may be in order.

Consider your individual needs

The best auto insurance in Hawaii is a policy that can meet your individual needs. For example, some parts of Hawaii are relatively remote, so roadside assistance might be a good coverage option if you travel often. Perhaps you have a teen who is about to go away for college. In that case, you may want to choose a company that offers a distant student discount. Maybe you have accidents or tickets on your record and need a company that is geared toward high-risk drivers. Before shopping, you may want to think about what makes you unique from other drivers and use this information as a guide when requesting quotes.

Frequently asked questions