Car Insurance in Hawaii
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Introduction: Car Insurance in Hawaii
Hawaii has over 1.3 million licensed drivers, making car insurance a critical part of driving in the state. Whether you’re navigating Honolulu’s traffic, driving along Maui’s coastal roads, or commuting in Hilo, car insurance in Hawaii is essential for legal compliance and financial protection.
Hawaii has some of the lowest car insurance rates in the U.S. due to its no-fault insurance system and low accident fatality rate. According to the National Association of Insurance Commissioners (NAIC), the average annual cost of full coverage in Hawaii is $1,306, which is below the national average of $1,674.
Hawaii Car Insurance Requirements (State Laws & Minimum Coverage)
Minimum Liability Coverage (20/40/10 Rule)
According to the Hawaii Department of Commerce and Consumer Affairs (DCCA), drivers must carry at least:
✔ $20,000 for bodily injury per person
✔ $40,000 for bodily injury per accident
✔ $10,000 for property damage per accident
✔ Personal Injury Protection (PIP): $10,000 minimum per person for medical expenses
Why Minimum Coverage May Not Be Enough:
- Medical expenses from an accident can exceed $20,000 quickly.
- Vehicle repairs often cost more than $10,000, especially for newer models.
- Hawaii follows a no-fault system, meaning Personal Injury Protection (PIP) coverage pays for medical bills regardless of fault.
Recommended Full Coverage for Better Protection
Many Hawaii drivers opt for full coverage, which includes:
| Coverage Type | What It Covers | Recommended For |
|---|---|---|
| Collision Coverage | Pays for damage to your car in an accident | Drivers with new or financed vehicles |
| Comprehensive Coverage | Covers theft, vandalism, and weather damage | Essential due to Hawaii’s hurricanes and flooding risks |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers injuries from uninsured drivers | Crucial since some Hawaii drivers lack insurance |
| Medical Payments Coverage (MedPay) | Covers medical expenses regardless of fault | Helpful for drivers with limited health coverage |
Average Cost of Car Insurance in Hawaii
Car insurance rates in Hawaii vary based on location, driving history, and vehicle type. Below is an average cost breakdown:
Hawaii Car Insurance Cost by Coverage Type
| Coverage Type | Average Annual Cost |
|---|---|
| Minimum Liability | $485 |
| Full Coverage | $1,306 |
Car Insurance Costs by Major Hawaii Cities
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Honolulu | $850 | $1,900 |
| Hilo | $750 | $1,700 |
| Kailua | $780 | $1,750 |
| Pearl City | $800 | $1,800 |
| Waipahu | $820 | $1,850 |
| Kaneohe | $790 | $1,780 |
| Mililani | $770 | $1,740 |
| Kahului | $760 | $1,720 |
| Kapolei | $810 | $1,820 |
| Lihue | $740 | $1,700 |
Car Insurance Costs by Age Group
| Age Group | Minimum Coverage | Full Coverage |
|---|---|---|
| 16-19 Years | $3,200 – $5,200 | $6,200 – $8,500 |
| 20-24 Years | $1,700 – $2,600 | $3,500 – $4,800 |
| 25-34 Years | $1,100 – $1,800 | $2,500 – $3,600 |
| 35-44 Years | $1,000 – $1,600 | $2,300 – $3,400 |
| 45-54 Years | $950 – $1,500 | $2,200 – $3,200 |
| 55+ Years | $900 – $1,400 | $2,000 – $3,000 |
✔ Teen Drivers (16-19 Years): Pay the highest premiums due to inexperience and higher accident risks. Many insurers offer good student discounts to help lower costs.
✔ Young Adults (20-24 Years): Rates decrease as driving experience improves but remain higher than mid-age drivers.
✔ Mid-Age Drivers (25-49 Years): Experience the lowest insurance premiums due to lower accident risks and a longer driving history.
✔ Senior Drivers (70+ Years): Rates increase again as older drivers face higher accident risks due to slower reaction times and medical conditions.
Factors Affecting Car Insurance Rates in Hawaii
Several factors influence car insurance rates in Hawaii, including:
- No-Fault Insurance System: Hawaii’s no-fault law requires Personal Injury Protection (PIP) coverage, increasing costs.
- Driving Record: Accidents, DUIs, and speeding tickets significantly impact rates.
- Location: Urban areas like Honolulu and Pearl City have higher rates due to congestion and theft.
- Credit Score: Hawaii is one of the few states that does not allow credit scores to be used in car insurance pricing.
- Annual Mileage: More miles driven increases accident risk.
- Vehicle Type: High-performance and luxury vehicles cost more to insure.
- Weather Conditions: Hawaii’s hurricanes, floods, and heavy rains contribute to higher insurance claims.
- Coverage Level: Full coverage costs more but provides better financial protection.
Best Car Insurance Companies in Hawaii (2025)
Finding the right insurer depends on affordability, coverage, and customer satisfaction. Here are some top options:
| Company | Best For | Average Annual Cost (Full Coverage) |
|---|---|---|
| GEICO | Cheapest Rates | $1,250 |
| State Farm | Best for Customer Service | $1,300 |
| Progressive | Best for High-Risk Drivers | $1,500 |
| Allstate | Best Full Coverage Options | $1,700 |
| USAA | Lowest Rates for Military | $1,200 |
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FAQs
Hawaii law requires 20/40/10 liability coverage: $20,000 per person for injuries, $40,000 per accident, and $10,000 for property damage, plus $10,000 in Personal Injury Protection (PIP).
The average minimum coverage costs around $40 per month, while full coverage averages $109 per month.
Smaller cities like Lihue and Kahului tend to have lower rates compared to Honolulu.
No, Hawaii does not require uninsured motorist coverage, but it is highly recommended.
Yes, but high-risk drivers may face higher premiums. Taking defensive driving courses and shopping around can help lower costs.
About the Author
Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.