Car Insurance in Hawaii

Car Insurance in Hawaii: What You Need to Know

Hawaii drivers pay an estimated $104 per month ($1,251 per year) for full coverage auto insurance, roughly 31% below the national average of $150 per month ($1,803 per year) [1][2]. That affordability is notable given the logistical costs of island living, where parts, repairs, and shipping expenses run higher than on the mainland. Two state-level policies help keep premiums down: Hawaii bans insurers from using credit scores to set rates, and it operates as a no-fault state, which routes minor injury claims through your own policy rather than the courts. Drivers should also be aware that Hawaii updated its minimum liability limits in 2026, raising the floor meaningfully above the old thresholds.

Coverage Requirements

Hawaii requires all registered vehicles to carry liability insurance and Personal Injury Protection. The minimum limits are [3]:

• $40,000 bodily injury liability per person (updated 2026; prior limit was $20,000)
• $80,000 bodily injury liability per accident (updated 2026; prior limit was $40,000)
• $20,000 property damage liability per occurrence (updated 2026; prior limit was $10,000)
• $10,000 Personal Injury Protection (PIP) per person

The 2026 update doubled the bodily injury limits and doubled the property damage floor. The old 20/40/10 thresholds had been in place for decades and reflected medical and repair costs from a much earlier era. The new 40/80/20 minimums bring Hawaii closer to the coverage levels financial advisors typically recommend for basic protection.

Because Hawaii is a no-fault state, your PIP coverage pays your own medical bills and those of your passengers after an accident, regardless of who caused it. You can only step outside the no-fault system and pursue a claim against the at-fault driver if injuries are serious. For property damage, however, Hawaii is not no-fault: the driver who caused the accident remains responsible for repairing the other party's vehicle or property [3].

What Insurance Costs in Hawaii

At $104 per month, Hawaii sits well below the national average despite the real logistical costs of island markets. Several structural factors shape that outcome:

• Credit scoring is banned. Hawaii law prohibits insurers from using credit history or credit-based insurance scores when setting auto insurance rates [4]. This removes one of the largest pricing variables used in most other states and compresses the spread between the highest and lowest premiums for drivers with similar records.
• No-fault keeps litigation costs low. Minor injury claims run through your own PIP policy rather than the courts. Lower litigation exposure generally translates to lower liability premiums across the market.
• Lower traffic volume and density. Hawaii's island geography limits the sheer number of vehicle miles traveled compared to major mainland metros. Fewer high-speed multi-lane corridors means fewer high-severity collisions on average.
• ZIP code rating restrictions. A 2026 commissioner's memorandum requires all motor vehicle insurers to refile any rates that rely on ZIP code-based rating [5]. This limits how much insurers can vary premiums based on where you live within the state.

The Hawaii Insurance Division publishes an annual Motor Vehicle Premium Comparison Guide that lists actual quoted rates across multiple insurers for standardized driver profiles [4]. This is one of the most practical free tools available to Hawaii drivers because it shows real market pricing rather than estimated ranges.

How to Save on Coverage

• Use the DOI premium guide before shopping. The Insurance Division's 2026 Motor Vehicle Premium Comparison Guide is available free from the consumer resources page [4]. It benchmarks what different insurers are quoting for your driver profile type, so you have a reference point before requesting quotes directly.
• Compare multiple insurers actively. Because credit scoring is banned, your rate depends almost entirely on your driving record, your vehicle, and where you live. That means two insurers looking at identical inputs can still arrive at different prices based on their own loss experience and pricing models. Shopping across carriers is the most reliable lever you have. Research finds a median savings of $461 per year for drivers who compare rates and switch [6].
• Review your PIP deductible options. Hawaii allows you to elect a PIP deductible to reduce your premium. If you have solid health insurance that would cover injury costs after an accident, a higher PIP deductible can be a reasonable trade-off for a lower monthly rate.
• Ask about low-mileage and bundling discounts. Insurers commonly offer discounts for driving fewer annual miles, maintaining a clean record, completing a defensive driving course, or bundling auto with renters or homeowners coverage. Hawaii's ban on credit scoring does not restrict these standard discount categories.

Frequently Asked Questions

What changed with Hawaii's 2026 minimum limits?

Hawaii raised its required minimum liability limits for the first time in decades. The new floor is 40/80/20: $40,000 bodily injury per person, $80,000 per accident, and $20,000 property damage. The old minimums were 20/40/10, meaning both the bodily injury and property damage floors doubled. If your existing policy was written at the old minimums, verify that it has been updated to meet the new requirements [3].

Can an insurer use my credit score to set my rate in Hawaii?

No. Hawaii is one of a small number of states that bans insurers from using credit history or credit-based insurance scores as a rating factor for auto insurance [4]. Unlike most states, where improving your credit score can meaningfully lower your premium, that lever does not exist in Hawaii. Your rate is determined by your driving record, the vehicle you insure, your coverage selections, and your location.

Does Hawaii's no-fault system mean I can never sue after an accident?

Not exactly. Hawaii's no-fault system means your own PIP coverage pays for your medical expenses after an accident regardless of fault, which handles most minor injury claims without litigation. However, you can step outside the no-fault system and bring a claim against the at-fault driver when injuries are serious. Property damage is also handled on an at-fault basis: the driver who caused the accident is responsible for repairing the other party's vehicle [3].

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Sources

[1] NAIC, "2022/2023 Auto Insurance Database Report," content.naic.org

[2] U.S. Bureau of Labor Statistics, "Motor Vehicle Insurance: CPI Factsheet," bls.gov

[3] Hawaii Insurance Division, "Motor Vehicle Insurance Information," cca.hawaii.gov

[4] Hawaii Insurance Division, "Insurance Division Consumer Resources," cca.hawaii.gov

[5] Hawaii Insurance Division, "Commissioner's Memorandum 2026-2PC: Motor Vehicle Rates Using ZIP Code-Based Rating," cca.hawaii.gov

[6] Consumer Reports, "How to Save on Car Insurance," consumerreports.org