Hawaii Insurance Coverage Laws

Law Requirements for Vehicle Owners & Operators

Here is some helpful information about auto insurance laws here in Hawaii.

The Hawaii Motor Vehicle Law requires the registered owner to:

Purchase and maintain at least the minimum auto insurance coverage.
Keep a current 'Motor Vehicle Insurance Card' in the vehicle at all times.
Surrender the registration and license plates immediately to the County Director of Finance if the vehicle is uninsured

The Hawaii Motor Vehicle Law requires all operators to:

Not operate a motor vehicle unless it is insured at all times under a motor vehicle insurance policy.

If the owner/operator fails to comply with the law, they may be fined and/or imprisoned up to six months for driving without insurance.

Mandatory & Optional Coverages Offered By All Hawaii Insurers

Insurance companies in Hawaii must offer additional coverage parts and optional limits.

Coverage	Mandatory or Optional	Limits Required To Offer	Coverage Applies To
Bodily Injury Liability (BI)	Mandatory	Minimum: $20,000 per person/$40,000 per accident	All Cars
Property Damage Liability (PD)	Mandatory	Minimum: $10,000 per accident	All Cars
Personal Injury Protection (PIP)	Mandatory	Minimum: $10,000 per person	All Cars
Personal Injury Protection (PIP)	Deductible Optional	Offer: None, $100, $300, $500 or $1,000	All Cars
Uninsured Motorists Coverage (UM)	Mandatory*	Match BI limit & stacked** (if applicable)	All Cars
Underinsured Motorists Coverage (UIM)	Mandatory*	Match BI limit & stacked** (if applicable)	All Cars
Other Than Collision (OTC)	Optional	Written with a deductible: $50, $100, $250, $500, $1,000, $1,500 or $2,000	All Cars
Collision (COLL)	Optional	Written with a deductible: $50, $100, $250, $500, $1,000, $1,500 or $2,000	All Cars
Wage Loss Benefits	Optional	$500 per month/$3,000 per accident, $1,000 per month/$6,000 per accident, $1,500 per month/$9,000 per accident, $2,000 per month/$12,000 per accident	All Cars
Death Benefits	Optional	$25,000 per person, $50,000 per person, $75,000 per person, $100,000 per person	All Cars
Funeral Expenses	Optional	$2,000 per person	All Cars
Alternative Care	Optional	30 treatments @ up to $75 each	All Cars

* Unless waived in writing

** Stacked coverage means that in the event of a coveraged UM or UIM loss, your total coverage will be the sum of the UM or UIM coverage limits for all autos covered under your policy (even though only one covered auto was involved in the accident).

For example, if you purchase Stacked UM coverage for $50,000 and insure three autos under your policy, your total available UM coverage is three times $50,000 or $150,000. Stacked UIM coverage limits apply the same way.

Stacked UM and/or UIM coverage can be purchased if you insure more than one auto under your policy. Because Stacked UM and UIM coverages increase your coverage limits, they usually cost more than non-stacked UM and UIM coverages. Be sure to carefully review your stacked compared to your non-stacked coverage options.

Premium Rates & Rating Factors

The Motor Vehicle Insurance Law requires each insurance company to establish rates independently based on its own loss experience and expenses. This is called "open rating". Whenever an insurance company wishes to adjust its policy rates, it must file a request for change with the State of Hawaii Department of Insurance. The department has 90 days to review the filing and may amend, approve, or reject it. Their primary function in reviewing a rate filing is to determine whether the requested adjustment is justified based on the company's current loss experience and anticipated future losses.

The cost for an individual automobile insurance policy is based on many rating factors. Here are some of the factors typically used:

Rating Factor	Description
Territory	The territory or county in which the vehicle is principally used. For example, the premium rates for Oahu are higher than those on Molokai.
Usage of the Vehicle	If the vehicle is primarily used for pleasure, the premium rates are the lowest. If driven to and from work or school, the rates are 2% higher. For business usage, the rate is 35% higher than pleasure use.
Accidents and Violations	The law allows insurance companies to surcharge policy premiums when drivers covered by the policy have been responsible for accidents, or convicted of moving traffic violations in the previous three-year period. Poor driving records result in higher premiums.
Type of Vehicle	The year, make, model and performance of a vehicle may also affect the final policy premium. Physical Damage coverage for a new car may cost more than similar coverage for an older car. Surcharges may also be applied for high performance cars (built for speed) or sports cars.
Coverage, Limits, & Deductibles	If you purchase higher limits of protection and/or more coverage, your premiums will be higher. However, selecting a deductible for PIP Coverage, Other Than Collision and/or Collision coverage results in premium savings.
Discounts	Carriers may offer discounts for customer loyalty and safe driving, insuring multiple cars, vehicle safety features, and mass marketing group discounts.

For automobile insurance, Hawaii law prohibits the use of the following factors as a basis for rating an automobile policy: