Hawaii Car Insurance: Paradise Has a Price
Island life means unique insurance challenges—from shipping costs to volcanic activity.
Hawaii Quick Facts
🤯 The Hawaii Paradox
Hawaii has some of the lowest insurance premiums but the highest repair costs in America. Why? Low speed limits (mostly 25-55 mph), little traffic congestion, and no drunk driving culture keep accidents minor. But when repairs ARE needed, parts must be shipped 2,500+ miles—adding 30-50% to costs.
Hawaii Minimum Insurance Requirements
Hawaii is a no-fault state with mandatory PIP coverage:
| Coverage Type | Minimum Required | Notes |
|---|---|---|
| Bodily Injury (per person) | $20,000 | Low—consider increasing |
| Bodily Injury (per accident) | $40,000 | Total per accident |
| Property Damage | $10,000 | VERY low for Hawaii repair costs |
| Personal Injury Protection (PIP) | $10,000 | Mandatory no-fault coverage |
Warning: The $10,000 property damage minimum is especially dangerous in Hawaii where repair costs are 30-50% higher than mainland. A minor fender bender could easily exceed $10K. Increase to $50,000+ PD.
Average Car Insurance Costs in Hawaii
| Coverage Level | Annual Premium | Monthly Cost |
|---|---|---|
| State Minimum | $398 | $33 |
| Full Coverage | $1,180 | $98 |
Costs by Island
| Island | Avg. Annual Premium | vs. State Avg. |
|---|---|---|
| Oahu (Honolulu) | $1,340 | +14% |
| Maui | $1,120 | -5% |
| Big Island (Hawaii) | $1,080 | -8% |
| Kauai | $1,050 | -11% |
Hawaii-Specific Insurance Considerations
Volcanic Activity Coverage
Standard comprehensive coverage includes volcanic damage (lava, volcanic earthquakes, vog damage). However, Big Island residents near active zones may face higher rates or exclusions. Check your policy carefully.
Tsunami & Flood Zones
Standard auto insurance covers tsunami damage to your vehicle. However, if your car is parked in a designated tsunami evacuation zone during a warning, some insurers may deny claims. Comprehensive coverage is essential for coastal residents.
Salt Air Corrosion
Hawaii's salt air accelerates vehicle corrosion. This isn't covered by insurance—it's considered normal wear. But it does mean Hawaiian vehicles depreciate faster, affecting your collision coverage value.
No-Fault Threshold
Hawaii uses a monetary threshold. You can only sue the at-fault driver if medical expenses exceed your PIP limits OR you suffer serious injury (permanent disfigurement, loss of body function).
Inter-Island Rental Coverage
If you rent cars on other islands, your personal auto policy typically extends coverage. But check your policy—some have restrictions on inter-island rentals.
Top Car Insurance Companies in Hawaii
GEICO
Often cheapest in Hawaii. Strong online service. Limited local presence.
State Farm
Strong agent network on all major islands. Good bundling discounts.
First Insurance Company of Hawaii
Local carrier since 1911. Understands island-specific needs. Personal service.
USAA
Military families only. Excellent rates given Hawaii's large military presence.
Bottom Line: Hawaii Car Insurance
Hawaii's low premiums are deceptive—when you DO need repairs, costs are astronomical. The $10,000 PD minimum won't cover a serious repair in Hawaii's inflated market.
Increase your property damage to $50,000+ and carry comprehensive coverage for volcanic activity, tsunamis, and flood damage. The extra cost is minimal compared to the risk.
Shop GEICO, State Farm, and First Insurance of Hawaii (local expertise). Oahu has the highest rates; neighbor islands are 5-11% cheaper.