Auto Insurance Requirements in Hawaii
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To own and drive a vehicle in Hawaii, the state requires that you carry auto liability insurance with a minimum of $20,000 per person/$40,000 per accident for bodily injury and $10,000 for property damage per accident.
In addition, the state mandates that you also get personal injury protection (PIP) coverage of at least $10,000. That's because Hawaii is a no-fault state, which means your insurance company will pay the bills (up to your coverage limit) for any injuries you or your passengers incur in a crash, regardless of who is at fault. This guarantees Hawaiian motorists the right to medical benefits. In exchange, however, you have limited tort rights (right to sue).
Hawaii requires you to have a valid insurance ID card in your vehicle at all times. In addition, the state mandates that your vehicle pass an annual safety inspection (new vehicles get a two-year window after initial inspection), during which you must present your proof of insurance. A copy of your insurance ID card will suffice.
Contents
Hawaii required car insurance coverage
Required min. limits | |
|---|---|
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Bodily injury (BI) | $20,000 per person/$40,000 per accident |
|
Property damage (PD) | $10,000 per accident |
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Personal injury protection (PIP) | $10,000 per accident |
Hawaii car insurance minimum requirements
The Hawaii Motor Vehicle Safety Responsibility Act sets forth the regulations for auto insurance. Your obligation as a motorist is considered fulfilled as long as you carry a policy that satisfies the minimum coverages listed in the law. Nevertheless, every insurer will sell you higher limits for each type of coverage if you wish to carry more protection. Here are the state's minimum requirements.
Liability coverage
Bodily injury (BI): Coverage of $20,000 per injured person and $40,000 per accident is required. BI is liability insurance, which means it pays for the other party's injuries — not yours nor your passengers' — in an accident you cause. You usually only need your BI if you're at fault for an accident that causes serious enough injuries to the other driver or passenger that they are able to either file a third-party claim or a personal injury lawsuit against you. To do so, however, their injuries must exceed set thresholds (see “Your right to sue,” below). Otherwise, because Hawaii is a no-fault state, the other party's PIP (see below) would typically pay for any bodily injury they sustain. Property damage (PD): You must carry $10,000 of PD per accident, whichpays the other party on your behalf for their property damage and/or loss in an accident you cause, up to the stated limit.
Personal injury protection
PIP is required in Hawaii, and the minimum coverage you can get is $10,000 per covered person per accident. PIP covers any necessary medical services for injuries you incur from a car accident, regardless of fault.. This includes — but is not limited to — ambulance, hospital, X-ray, surgery, professional nursing and rehabilitation bills.
Cheapest companies in Hawaii for minimum liability
Optional first-party benefits
In the Aloha State, your PIP does not include nonmedical first-party benefits, but they are available for purchase as optional coverages:
Wage loss: If you (or someone else covered under your PIP) are ever hurt to a degree that you are unable to work and earn your regular income, having wage loss coverage ensures compensation for the lost income. Based on your regular gross income, you may receive up to $500/month, capped at $3,000 per accident. You can usually opt for higher monthly and total wage benefits (available limits vary by insurer) for an increased premium.
Death benefit: In the unfortunate event that you (or someone else covered under your PIP) dies from an accident, this coverage ensures that your surviving spouse, dependents or estate will receive a minimum of $25,000. Coverage is also available up to $100,000 — or possibly more, depending on the insurer. Funeral expenses: This benefit helps cover funeral and burial expenses for any covered person who passes away due to injuries from the accident. The starting benefit licensed insurers offer is $2,000, but they'll have higher f options too.
Your right to sue
As a no-fault state, Hawaii takes away its motorists' tort liability — the right to sue for losses in a motor vehicle accident — and in so doing gives its motorists access to medical benefits, regardless of fault, via PIP coverage. However, there are exceptions to the rule, which can reinstate your tort right. In those instances, you can sue the negligent driver for pain and suffering if your injuries meet the following thresholds:
Quantitative: Expenses for the injuries you incurred are equal to or exceed $5,000 total (this takes into account both costs covered under PIP and those that are not, such as your health insurance deductible).
Qualitative: You suffered a serious injury, which, by the insurance code's definition, is identified as any of the following:
- Significant permanent loss of use of a body part, such as a limb, or a function, such as your eyesight
- Permanent serious disfigurement, which leads to the injured person's emotional or mental suffering. This is more subject to a jury's discretion
- Death
Alternative proof of financial responsibility
There are three alternative ways you can prove your financial responsibility — ability to pay for your negligence or operational mistake — in Hawaii. However, note that with these alternatives, you will be lacking the no-fault insurance (PIP) that a car insurance policy extends. Your county's vehicle licensing division will grant your registration and/or renewal if you provide one of the following:
Surety bond: A surety bond issued by a licensed surety company in Hawaii must be good for payment whenever you cause an accident, in the same amounts as a minimum insurance policy's liability coverage (20/40/10). You'll need to file the bond with your county's director of finance.
Real estate bond: A real estate bond is signed by two individuals, both of whom own real estate in Hawaii. They must list their real estate on the bond as collateral for you, in case you fail to pay for the damages you cause in an accident. Your liability under this bond is still the same as a minimum policy's BI and PD, and the two individuals will risk losing their listed property if neither you nor they respond to a court judgment against you in time. Your real estate bond is only valid after it is approved by Hawaii's commissioner of insurance.
Certificate of deposit: A $25,000 deposit in cash or bonds can be filed with the director of finance in your county of residence. You must also provide proof, along with your deposit, that you do not have any unpaid charges from previous accidents. This deposit will be used to satisfy future judgments against you in case you cause an accident.
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