Having motor vehicle insurance is essential to owning a motor vehicle in Hawaii. Hawaii State law requires that your vehicle be insured throughout the motor vehicle registration period and that you have a valid Hawaii motor vehicle insurance identification card in your motor vehicle at all times. You can be ticketed and fined if you operate a vehicle without the required motor vehicle identification card.
If you don’t have insurance on your motor vehicle, you must surrender the registration certificate and license plates to the county director of finance. And when you do that, you will not be able to drive the vehicle.
Hawaii is a considered a “no-fault state”, which means your motor vehicle insurance company will pay the bills for your injuries and your passengers’ injuries up to the personal injury protection benefits (“PIP”) limit. And you cannot sue or be sued unless there are serious injuries. Because “no-fault” applies to injuries, not to vehicles or property, the driver-at-fault in an accident is responsible for damages to vehicle and property.
Your minimum motor vehicle insurance policy must have protection for you and your passengers of $10,000 per person personal injury protection benefits. This is for paying medical and rehabilitative costs.
Your mandatory coverages also include a $20,000 per person/$40,000 per accident bodily injury liability and a $10,000 per occurrence property damage liability. These cover damages for the injured party when you are at-fault in an accident.
Optional coverages and options you may purchase include: collision and comprehensive, uninsured (“UM”) and underinsured (“UIM”) coverages, wage loss, alternative care (including healing methods such as naturopathy, acupuncture and faith healing), death benefits (coverage range from $25,000 to $100,000), funeral benefits, (the coverage is $2,000), PIP deductible and PIP managed care.
Your insurance agent or company must advise you about your uninsured and underinsured motorist coverage options including your right to decline coverage in writing. You may purchase at a minimum $20,000 per person uninsured motorist coverage to pay for serious injury or death if the driver at fault does not have insurance or in case of a hit and run accident. You may also purchase at a minimum $20,000 per person underinsured motorist coverage to pay if the driver at fault does not have enough insurance.
Your insurance company or insurance agent should help you decide on the best coverages for your individual situation and needs.
If you would like to look at a motor vehicle insurance rate comparison/customer complaint ratio premium sheet, click here: Motor Vehicle Premium Comparison&Consumer Complaints Guide.
FAQs
Understanding auto insurance—the basics
Auto insurance provides coverage for: Property – such as damage to or theft of your car. Liability – your legal responsibility to others for bodily injury or property damage. Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
What is the summary of car insurance? ›
Car insurance works as a safeguard for your financial well-being in case of car accidents, theft, or other auto incidents beyond your control. Depending on your coverages, your car insurance company can help pay for vehicle repairs, medical expenses, and damages or injuries you cause others while driving.
What does a automobile insurance policy typically include? ›
While different states mandate different types of insurance and there are several additional options (such as gap insurance) available, most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist.
What are the three types of car insurance? ›
The three main types of car insurance are often considered: liability, comprehensive, and collision. This is because liability is required by law in most states, and comprehensive and collision coverage are required for most car loans and leases.
What does 250/500/100 mean in insurance? ›
A common policy structure is 250/500/100, which covers up to: 250 = Bodily Injury Coverage — $250,000 for injuries per person. 500 = Overall Maximum Coverage — $500,000 for injuries total per accident. 100 = Property Damage Coverage — $100,000 for property damage per accident.
What are the most important parts of car insurance? ›
The most important ones are liability, comprehensive and collision coverage. We call them the big three of basic car insurance—coverage you can't afford to go without. If you have all three, it means you have full coverage.
What is the #1 auto insurance in the US? ›
Currently, the largest car insurance company in America is State Farm. Major auto insurance companies offer financial stability and a variety of coverage plans. To find cheap car insurance rates, you'll need to compare quotes from various providers.
What factors determine car insurance rates? ›
What determines your car insurance rates
- Location.
- Driving record.
- Credit history.
- Gender.
- Age.
- Marital status.
- Claims history.
- Car make and model.
This outlines key items in the policy, such as the insured and policyholder's information, the type of policy, the premium amount, the benefit amount, any coverage limitations, a list of riders, beneficiaries, and other vital components to the policy.
What are 3 items that auto insurance can cover? ›
Uninsured/Underinsured Motorist Coverage is for accidents when the other driver is at fault and does not have insurance or does not have enough insurance.
- Bodily injury coverage pays medical expenses for you and passengers.
- Property damage coverage pays the cost of repairs to your car up to $3,500.
1. General wear and tear: In general, auto insurance doesn't cover normal wear and tear. This can include things like brake replacement, engine repairs, or replacing windshield wipers. In addition, smaller wear and tear issues like scratches, dings, chipping paint, etc.
What are the five types of vehicle insurance? ›
5 Types of Car Insurance Coverage Explained
- Liability Insurance.
- Collision Coverage.
- Comprehensive Coverage.
- Personal Injury Protection.
- Uninsured /Underinsured Motorist Protection.
Yes, the premium for comprehensive care insurance is on the higher side when compared to the other types of car insurance in India. This is only because comprehensive car insurance offers more protection for your car than other types of motor insurance.
Which cover type is best for car insurance? ›
Fully comprehensive car insurance gives you the highest level of cover. If you're looking for peace of mind or have a new or expensive car, this could be the right policy for you. Fully comprehensive insurance typically covers: Damage to someone else's car or property.
What types of insurance are not recommended? ›
15 Insurance Policies You Don't Need
- Private Mortgage Insurance. ...
- Extended Warranties. ...
- Automobile Collision Insurance. ...
- Rental Car Insurance. ...
- Car Rental Damage Insurance. ...
- Flight Insurance. ...
- Water Line Coverage. ...
- Life Insurance for Children.
Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursem*nt against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.
What is the basic explanation of insurance? ›
Insurance is a contract between an individual or business with an insurance company to help provide financial protection and mitigate the risks associated with certain situations or events. There are various types of insurance available, including health, dental and vision, life, auto, and legal insurance.
What is insurance easy way to explain? ›
To explain what insurance is in simple terms: it's a way to protect your loved ones, property, business and lifestyle from financial losses and unexpected costs.
