How to Buy Affordable Car Insurance in Hawaii

Fran
Lucy Lazarony
July 6, 2020

The average cost of auto insurance in Hawaii is $1,045 annually, which is quite a bit lower than the national average of $1,548. But who doesn’t like an even better deal?

Let’s get your auto insurance rates in Hawaii even lower with some money-saving tips and strategies. Before we do, let’s learn more about auto insurance in the Aloha State.

State Minimum Requirements

If you ever cause a car accident, liability insurance pays for other people’s injuries and property damages up to your liability limit. Each state sets liability requirements for the drivers in their state.

In Hawaii, the minimum liability requirement is $20,000 bodily injury liability coverage per person, $40,000 bodily injury liability coverage per accident and $10,000 property damage liability coverage per accident.

The state minimum liability coverage in Hawaii costs $516 annually. Hawaii also requires Personal Injury Protection (PIP) coverage of $10,000 per person. Also known as no-fault insurance, this coverage pays the cost of lost wages and medical bills up to the PIP policy limit.

A Full Policy Costs More

In Hawaii, if you choose a full auto insurance policy that includes a collision and comprehensive coverages with deductibles of $1,000, you’ll pay $924 annually.

Collision insurance is coverage that helps to repair or replace your car if it’s damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events that aren’t covered by collision insurance. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.

If there is a loan on your car, your auto lender may require you to carry both collision and comprehensive insurance coverages. Both collision and comprehensive insurance coverages require deductibles. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Choosing a high deductible, especially on a newer car, can help to lower your insurance premium.

Cheapest and Most Expensive Cities

In Hawaii, the city with the cheapest auto insurance is Kihei with an average annual premium of $1,035. The city with the most expensive auto insurance is Hilo with an average $1,121 annual premium. Kihei is located on Maui’s southwest shore. And Hilo is the largest town in Hawaii County, Hawaii.

No Credit Data in Hawaii

In Hawaii, a consumer’s credit information cannot be used to price auto insurance premiums. Hawaii joins Massachusetts and California with these restrictions on credit data. In many other states, insurance companies use credit information to assign risk pools and determine auto insurance rates for customers. With these credit data restrictions in Hawaii, a driver with poor credit doesn’t have to worry about getting hit with a high auto premium because of a low credit score.

How to Save Money on Car Insurance

Ready to get auto insurance premiums in Hawaii even lower? Here is a roundup of money-saving tips. Use as many as you can to save money on car insurance. Be a safe driver. Be a careful and responsible driver that follows the rules of the road and you will save money on your car insurance. So avoid speeding tickets, DUIs, moving violations and at-fault accidents. In Hawaii, not having a recent speeding ticket earns you a 9 percent price cut on your insurance premium. But your premium will go up following DUIs, speeding tickets and at-fault accidents. After a DUI you will see your premium increase by 79 percent. For speeding tickets you get a 9 percent rate hike and you get a 27 percent rate hike when you are at fault in an accident. So obey the rules of the road. Be a safe driver and be sure to ask for a good driver discount. You’ve earned it.

Bundle your policies. Bundle your auto insurance policy with another policy such as a homeowners policy or renters policy and save money.

Insure more than one car. Insure more than one car with the same insurance company and you will save money on your premiums.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Have anti-theft and safety devices. Having certain anti-theft and safety features on your car will lower your insurance rates. So check with your auto insurance company about the anti-theft and safety features on your car to find out if you are eligible for some savings.

Check memberships. Members of particular professional organizations and affiliates get discounts on auto insurance. Check with the memberships in your wallet to see if you qualify for savings on your auto insurance premium.

Insure less for older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer.

Maintain your coverage. You will pay higher insurance rates if you don’t maintain continuous coverage of your car insurance. So stick with your insurance coverage and save money.

Choose a high deductible. As mentioned earlier, choosing a high deductible will save you money on your auto premium, especially if you have a newer car. Just be sure to put the deductible amount in a small emergency fund. That way the money will be there if you should need to make an insurance claim.

Be older than 25 and younger than 65. Younger and older drivers have more serious accidents and pay more for their car insurance. Drivers aged in-between pay less for insurance.

Be a woman. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Get married. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles.

Be a low-mileage driver. If you are a heavy commuter, you will pay more on your auto insurance. But if you are a low-mileage driver, you will pay less. So drive less and pay less on your auto insurance.

Choose a safe neighborhood. If you live in a neighborhood with high accident claims and high auto theft, you will pay more for your car insurance. If you live in a neighborhood with few accident claims and low crime, you’ll pay less for your car insurance.

Buy a house. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your own home and enjoy the savings on your auto insurance premium.

Shop around. The best way to save money on an auto insurance premium is by shopping around. To get the best deal, you’ll want to get quotes from several insurance companies. SmartFinancial makes it easy to do. Just enter the type of insurance you are looking for and a zip code. Answer a few, quick questions and you’ll be comparing auto insurance rates in Hawaii in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want. So shop smart for auto insurance and drive safely on the roads of the Aloha State.

Get a Free Auto Insurance Quote Online Now.

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