Car Insurance in Hawaii: Coverage, Cost & Best Options

Auto insurance is an important purchase, but finding cheap car insurance in Hawaii isn’t always easy. The best way to find cheap car insurance is to compare rates from multiple insurers.

Minimum coverage in Hawaii is $492 per year on average, but you can likely get a cheaper policy. For example, Geico offers the cheapest rates in Hawaii at $318 per year, on average, for minimum coverage of car insurance for a 35-year-old driver with a clean driving record.

The cheapest car insurance company in Hawaii is State Farm at $1,022 per year on average, or $85 per month. Meanwhile, the average cost of full coverage car insurance in Hawaii is $1,631 per year, or about $136 per month.

How an Insurance Premium works

An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance. Once earned, the premium is income for the insurance company. It also represents a liability, as the insurer must provide coverage for claims being made against the policy.

Failure to pay the premium on the individual or the business may result in the cancellation of the policy.

When you sign up for an insurance policy, your insurer will charge you a premium. This is the amount you pay for the policy. Policyholders may choose from several options for paying their insurance premiums. Some insurers allow the policyholder to pay the insurance premium in installments—monthly or semi-annually—while others may require an upfront payment in full before any coverage starts.

The price of the premium depends on a variety of factors, including:

The type of coverage
Your age
The area in which you live
Any claims filed in the past
Moral hazard and adverse selection

Required minimum Hawaii car insurance

Car owners in Hawaii must purchase liability car insurance to legally drive a vehicle. If you cause an accident, liability insurance pays other people for damage and injuries, and it will cover your legal defense if you’re sued.

Car owners in Hawaii must buy liability insurance with at least:

$20,000 for bodily injury to one person
$40,000 for bodily injury to multiple people in one accident
$10,000 for damage to property in one accident

The minimum liability insurance requirements in Hawaii won’t get you very far. Once your liability insurance pays out the maximum amount, you can still be sued by others for their car accident bills. If you have assets like a house and savings, it makes sense to protect your wealth with higher amounts of liability insurance.

Personal injury protection: In Hawaii, you are also required to buy at least $10,000 per person in personal injury protection (PIP) benefits. This coverage pays for medical expenses for you and your passengers, no matter who caused the accident.

Additional car insurance coverages in Hawaii

Uninsured motorist coverage: Hawaii does not require you to buy uninsured motorist coverage but your car insurance company must offer it. If you don’t want it, you can reject it in writing. Generally, uninsured motorist (UM) is good coverage to have. If someone crashes into you and they don’t have car insurance, you can make a claim on your UM coverage to pay for medical expenses.

Underinsured motorist coverage: Here’s another good coverage to have. What happens when someone has liability insurance, but it’s not enough to cover your medical expenses? Underinsured motorist (UIM) kicks in to cover your medical bills when the at-fault driver’s liability insurance is exhausted.

If you buy UM or UIM in Hawaii, the coverage limits you must have are:

$20,000 for UM bodily injury to one person, $40,000 per accident
$10,000 for UM property damage per accident
$20,000 for UIM bodily injury to one person, $40,000 per accident

Collision insurance: This insurance type pays for your car repairs for car accidents. For example, if you back into a pole, crash into a tree or drive into a building. You can also use it if someone else hits your car, rather than making a claim against their liability insurance.

Comprehensive insurance: This insurance type pays for car repairs for a variety of problems, like floods, fires, hail, vandalism, riots, falling objects and collisions with animals (like deer). It also covers car theft.

While collision and comprehensive insurance are not required, if you have a car loan or lease, your lender or leasing company most likely requires both coverages.

How much is car insurance in Hawaii?

Although your actual cost of coverage will vary based on personal factors, Hawaii’s average rates are significantly cheaper than the national average. The annual average car insurance cost in Hawaii is $1,275 for full coverage and $344 for minimum coverage.

In comparison, the average cost of insurance in the U.S. is $622 per year for minimum coverage and $2,014 per year for full coverage.

The average monthly cost of car insurance in Hawaii is $106 for full coverage and $29 for minimum insurance.
Average rates for full coverage in Hawaii are 37 percent cheaper than the national average.
Of Hawaii’s largest cities, Hilo has one of the highest average costs of car insurance at $1,348 per year for full coverage.
A single DUI conviction in Hawaii increases full coverage car insurance rates by an average of 293 percent.
Hawaii is one of the few states that does not allow insurance companies to consider age, gender, marital status or credit when determining rates.

How much is the minimum coverage of car insurance in Hawaii?

On average, Hawaii drivers spend $1,157 a year for a policy that meets the state’s minimum liability coverage requirements. Geico has the cheapest average rate for this level of coverage at $800 per year. Allstate has the highest average annual rate in this category: $1,419.

COMPANY	LOW COVERAGE

Allstate	$1,419
Farmers	$1,295
Geico	$800
Island	$1,305
Progressive	$1,406
State Farm	$976
USAA	$899
Statewide Average	$1,157

How much is high coverage car insurance in Hawaii?

Higher levels of coverage provide added protection but cost more. According to our analysis, the average cost for high-coverage car insurance in Hawaii is $1,311. Of the providers we analyzed, Geico has the lowest average annual rate at $896.At the other end of the spectrum, Progressive has the highest average rate in this category, $1,684 per year.

COMPANY	HIGH COVERAGE

Allstate	$1,679
Farmers	$1,395
Geico	$896
Island	$1,417
Progressive	$1,684
State Farm	$1,101
USAA	$1,004
Statewide Average	$1,311

Cheapest car insurance in Hawaii

Hawaii drivers pay the cheapest car insurance rates in our study with Geico, which has an average annual rate of $862, about 30% less than the average rate statewide. Allstate has the highest sample rate in our study: $1,555 per year on average.

But car insurance rates are highly individualized and the price you pay for a policy will differ from our sample rates. Insurers consider age, marital status, the type of car you drive, driving history, and other things when determining costs.

Cheap car insurance in Hawaii for drivers with a speeding ticket

A speeding ticket increases car insurance rates by 11% in Hawaii. The exact rate increase will vary by insurance company. Even though you’ll face higher insurance rates, you can still shop around for the best car insurance.

USAA and State Farm have the best average rates for drivers with a speeding ticket in Hawaii, so make sure to get quotes from those companies if you’re shopping for Hawaii auto insurance and have a speeding ticket on your record.

Hawaii car insurance rates by top cities

How much a driver in Hawaii pays for car insurance can vary by ZIP code. For instance, residents of Honolulu ($1,241), Kahului ($1,214) and Kihei (also $1,214) spend less than the statewide average annual rate of $1,241. But drivers in Kailua, Kapolei, Mililani and Pearl City spend an average of $1,243, just a few dollars over the statewide average.

The highest average rate, according to our research, is found in Hilo. Residents there spend an average of $1,330 per year for car insurance.

Get an online quote or speak with an insurance agent to compare the most accurate quotes for your area. Comparing car insurance quotes can help you find a policy that meets your insurance needs and suits your budget.

CITY	AVERAGE PREMIUM
Hilo	$1,330
Honolulu	$1,241
Kahului	$1,214
Kailua	$1,243
Kapolei	$1,243
Kihei	$1,214
Mililani	$1,243
Pearl City	$1,243

Cheapest car insurance in Hawaii for 20-year-old drivers

Drivers in their 20s may have to get a lot of quotes to find the best cheap car insurance. Prices can be sky-high for younger 20-somethings but tend to come down as drivers get more experience on the road. Still, some companies routinely have better insurance rates for young drivers, so it’s best to shop around to find them.

Cheapest full coverage car insurance in Hawaii for 20-year-olds

Drivers in Hawaii with clean driving records may want to consider the following companies, which had the lowest average rates:

State Farm: $1,022 per year, or about $85 per month.
Geico: $1,410 per year, or about $117 per month.
21st Century: $1,440 per year, or about $120 per month.
Island Insurance: $1,770 per year, or about $148 per month.
Progressive: $1,945 per year, or about $162 per month.

Cheapest minimum coverage car insurance in Hawaii for 20-year-olds

Drivers in Hawaii who want just the state minimum coverage may want to check with these companies:

Geico: $335 per year, or about $28 per month.
State Farm: $344 per year, or about $29 per month.
21st Century: $491 per year, or about $41 per month.
Island Insurance: $499 per year, or about $42 per month.
Allstate: $609 per year, or about $51 per month.

Cheapest for 20-year-olds with poor credit

Drivers with poor credit in Hawaii should look at the following insurers with the lowest average rates for minimum coverage:

Geico: $335 per year, or about $28 per month.
State Farm: $344 per year, or about $29 per month.
21st Century: $491 per year, or about $41 per month.
Island Insurance: $499 per year, or about $42 per month.
Allstate: $609 per year, or about $51 per month.

Cheapest for 20-year-old drivers with one speeding ticket

For drivers with a recent speeding ticket in Hawaii, here are the companies with the lowest average rates for minimum coverage:

Geico: $353 per year, or about $29 per month.
State Farm: $403 per year, or about $34 per month.
Island Insurance: $533 per year, or about $44 per month.
21st Century: $601 per year, or about $50 per month.
Allstate: $800 per year, or about $67 per month.

Cheapest for 20-year-old drivers with one at-fault crash

For drivers with a recent accident in Hawaii, here are the companies with the lowest average rates for minimum coverage:

Geico: $422 per year, or about $35 per month.
State Farm: $455 per year, or about $38 per month.
Island Insurance: $636 per year, or about $53 per month.
21st Century: $646 per year, or about $54 per month.
Allstate: $1,021 per year, or about $85 per month.

Cheapest for 20-year-old drivers after a DUI

The cheapest auto insurance we found after a DUI is shown here, alongside the insurers’ average rates for minimum coverage.

State Farm: $542 per year, or about $45 per month.
21st Century: $676 per year, or about $56 per month.
Progressive: $1,200 per year, or about $100 per month.
Geico: $1,222 per year, or about $102 per month.
Allstate: $2,735 per year, or about $228 per month.

How to save on car insurance

Although car insurance can be expensive, there are many ways that you may be able to lower your rate. Here are some potential options for getting a cheaper car insurance premium:

Shop around and compare quotes

Since the price of car insurance varies by insurer and each company has its own proprietary rating algorithm, your premium may vary greatly depending on the company you choose. To find the cheapest company for your specific circumstances, you may want to compare quotes across various carriers.

Most insurance professionals recommend comparing quotes for the same coverage types and limits across carriers to get the most accurate comparison.

Apply discounts

Almost every insurance company offers discounts that might lower your premium. Some discounts are more significant than others. You may want to review the discounts each carrier offers when comparing quotes. Discounts are commonly available for being a good student, remaining claims-free, driving a car with strong safety ratings and bundling your insurance policies.

You may also qualify for a discount if you pay your premium in full, enroll in paperless billing or set up autopay.

Check your coverage

There are many different types of car insurance coverage, and the more you have, the higher your insurance premium typically is. Higher coverage limits also typically increase your premium. If price is a concern, you may want to review your policy to ensure you’re only paying for the coverage types that you need and check for duplicate coverage.

For instance, you might already have roadside assistance through your credit card provider.