How Much Is Car Insurance In Hawaii?

Finding affordable car insurance in Hawaii can be tricky with high minimum coverage requirements. But understanding what impacts rates along with shopping around can lead drivers to the best deal on Hawaii auto insurance.

If you’re short on time, here’s a quick answer: Average car insurance rates in Hawaii are $1,293 per year for minimum coverage. But drivers can find cheaper rates by having good credit, driving safely, choosing higher deductibles, and comparing quotes.

Minimum Hawaii Car Insurance Requirements

Hawaii state law requires all motorists to carry a minimum amount of car insurance coverage. Having adequate insurance is crucial to protect yourself financially in case of an at-fault accident. Below are the minimum liability coverage amounts you must have.

Bodily Injury Liability

Bodily injury liability coverage pays for injuries sustained by others if you cause an accident. Hawaii requires drivers to carry the following per accident:

• $20,000 bodily injury per person
• $40,000 total bodily injury

This covers the medical bills if other drivers, passengers, or pedestrians are injured in a crash that you caused. Without enough coverage, you may have to pay these expenses out-of-pocket.

Property Damage Liability

Property damage liability pays for repairs to another driver’s vehicle when you are at fault in a collision. Hawaii mandates drivers to carry $10,000 property damage liability per accident.

Uninsured/Underinsured Motorist Bodily Injury

Uninsured and underinsured motorist coverage pays for injuries to you and your passengers if hit by a driver with little or no insurance. Hawaii requires:

• $20,000 per person
• $40,000 per accident

Personal Injury Protection

Personal injury protection (PIP) covers medical expenses for injuries sustained to you and your passengers, regardless of who was at fault. Hawaii is a no-fault insurance state, so drivers must carry a minimum of $10,000 PIP coverage.

Having only the minimum liability and PIP limits can leave you exposed financially. It’s wise to purchase more than the minimums for better protection. An independent insurance agent can help you determine adequate coverage for your situation.

What Impacts Hawaii Car Insurance Rates

Driving Record

Your driving record is one of the biggest factors that impacts your car insurance rates in Hawaii. Insurance companies will review your motor vehicle record and check for any violations, at-fault accidents, or DUIs in the past 3-5 years. Just a single violation can increase your rates by 20% or more.

Multiple violations or a DUI can cause much larger rate hikes. Maintaining a clean driving record with no incidents is the best way to keep your Hawaii auto insurance affordable.

Location and Commute

Where you live and commute to in Hawaii also affects your insurance rates. Drivers in areas with higher rates of accidents, thefts and claims tend to pay more for coverage. Urban areas like Honolulu generally have higher base rates than rural spots.

In addition, longer commutes or driving in high-risk areas can also increase your premiums. Ask your insurer how your location and regular routes impact your rates.

Age and Gender

Your age and gender play a significant role in what you pay for car insurance in Hawaii. Teenage drivers usually have astronomical rates due to their high accident rates. However, rates start decreasing once you hit your 20s, with drivers in their 50s and 60s generally paying the least.

In terms of gender, statistics show that male drivers tend to have more high-risk driving behaviors. This causes most Hawaii insurance companies to charge men higher premiums than women.

Credit History

Believe it or not, your credit score can influence your auto insurance costs. Drivers with poor credit tend to file more claims than those with good credit scores according to research. As a result, most insurers in Hawaii will check your credit when determining your rates.

Maintaining excellent credit can help lower your premiums substantially. Improving your credit over time can also lead to decreasing rates.

Coverage Levels

The amount and types of insurance coverage you choose also impacts your overall rates. Minimum liability coverage required in Hawaii often costs $300-$500 per year. However, adding comprehensive and collision coverage could cost $1,000 or more annually.

Increasing your deductibles from $500 to $1,000 can also lower your premiums. On the other hand, adding extras like rental reimbursement or roadside assistance will raise your rates. Talk to your agent about the rightcoverage levels for your budget and situation.

How to Save on Hawaii Car Insurance

Shop Around

Comparison shopping is key to finding the best car insurance rates in Hawaii. Get quotes from multiple insurers to see which offers the most coverage for the lowest premium. Major insurers like Geico, Progressive, and State Farm operate in Hawaii, as do local companies like Island Insurance.

Spending time shopping around can result in hundreds of dollars of savings per year.

Maintain Good Credit

Insurers view drivers with higher credit scores as more financially responsible and less risky to insure. Having a good or excellent credit score can lower your car insurance premiums significantly. Pay bills on time, keep balances low, check credit reports regularly, and correct any errors to help maximize your score.

Choose a Higher Deductible

Opting for a higher deductible, like $1,000 instead of $500, will lower your premiums. Just be sure you have enough savings set aside to pay the deductible if you file a claim. This strategy makes sense for drivers who pose lower risk.

Ask About Discounts

There are many common auto insurance discounts in Hawaii to ask about:

• Good driver discount
• Good student discount
• Defensive driver discount
• Low mileage discount
• Multi-policy discount
• Anti-theft device discount

The more discounts you qualify for, the more you could potentially save. For example, bundling homeowners or renters insurance along with your auto policy could knock 10-15% off your overall insurance costs. 👍🎉 It never hurts to ask!

Average Cost of Car Insurance in Hawaii by Company

The average cost of car insurance in Hawaii can vary quite a bit depending on which company you choose. However, across all major insurance providers, Hawaiians pay around $1,293 per year on average for full coverage car insurance, according to 2021 data.

State Farm

State Farm is one of the most popular car insurance providers in Hawaii, with around 15% market share in the state. State Farm customers in Hawaii pay an average annual premium of $1,197 for full coverage, which is slightly below the statewide average.

GEICO

As the second largest auto insurer in Hawaii, GEICO offers very competitive rates to drivers. GEICO policyholders pay approximately $1,105 per year on average for comprehensive coverage. This makes GEICO one of the most affordable options for car insurance in the state.

Allstate

Allstate has a strong presence in Hawaii as well. Drivers insured with Allstate can expect to pay around $1,543 per year for a full coverage policy. While pricier than options like GEICO and State Farm, Allstate does offer many discounts that can potentially lower your costs.

USAA

For qualifying military members and their families, USAA typically offers the lowest average rates in Hawaii at just $992 per year. However, USAA membership restrictions prevent most Hawaii drivers from taking advantage of these low costs.

The Hartford

Rounding out the top 5 largest car insurers in Hawaii is The Hartford. Full coverage premiums with The Hartford average around $1,615 annually for Hawaii drivers. Their rates tend to be quite competitive for drivers in higher risk categories though.

While actual rates vary considerably based on your specific risk factors and policy limits, this data gives you a general idea of average costs with major carriers in Hawaii. Comparing quotes regularly can ensure you find the best deal on car insurance for your situation.

Frequently Asked Questions

Is car insurance mandatory in Hawaii?

Yes, Hawaii state law requires all motor vehicles to be insured with minimum liability coverage. This ensures drivers can cover costs in an at-fault accident. The minimum liability limits are:

• $20,000 bodily injury/death coverage per person
• $40,000 bodily injury/death coverage per accident
• $10,000 property damage per accident

Not carrying auto insurance can result in fines, license suspension, and vehicle impoundment. It’s critical to maintain continuous coverage.

How much is minimum coverage car insurance in Hawaii?

The state minimum liability requirements provide relatively low coverage limits. Annual premiums for basic policies usually run between $500 to $800 on average. However, experts often recommend buying more than just minimum coverage.

Buying higher liability limits protects you from major out-of-pocket costs if you cause an accident. Many experts suggest 100/300/100 limits as a good baseline for coverage. This can raise annual premiums to around $1,000-$1,500 on average.

What is the cheapest car insurance company in Hawaii?

When comparing rates, USAA and Geico tend to offer some of the most affordable premiums in Hawaii. However, your personal risk profile impacts pricing significantly. It’s best to compare personalized quotes from multiple top-rated carriers like State Farm, Progressive, and Allstate as well.

• Your driving record and credit score
• Vehicle make, model, and year
• Claims history and driving experience
• Coverage limits and deductible amounts

Use an online quote tool to see which insurer offers you the best rate for your situation. But don’t focus only on price – also consider customer satisfaction scores and financial strength ratings when choosing a reliable, affordable car insurance company in Hawaii.

Conclusion

Buying car insurance in Hawaii can be expensive due to high minimum liability coverage requirements. But drivers can find the best rates for their situation by shopping around, maintaining good credit, choosing higher deductibles, and qualifying for all available discounts.

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