Hawaii Auto Insurance Requirements

Hawaii has comprehensive auto insurance requirements that protect motorists and accident victims. Significant changes effective January 1, 2026 increased minimum coverage limits.

Hawaii Minimum Auto Insurance Requirements (2026)

New Limits Effective January 1, 2026

Hawaii increased minimum auto insurance requirements beginning January 1, 2026:

Prior Requirements (Before January 1, 2026):

• Bodily Injury Liability: $20,000 per person / $40,000 per accident
• Property Damage Liability: $10,000 per occurrence
• Uninsured Motorist: $20,000 per person minimum (optional)
• Underinsured Motorist: $20,000 per person minimum (optional)

New Requirements (January 1, 2026 and After):

• Bodily Injury Liability: $40,000 per person / $80,000 per accident
• Property Damage Liability: $20,000 per occurrence
• Uninsured Motorist (UM): $40,000 per person / $80,000 per accident (MANDATORY)
• Underinsured Motorist (UIM): $40,000 per person / $80,000 per accident (MANDATORY)
• Personal Injury Protection (PIP): $10,000 minimum (no change)

Exam Tip: The 40/80/20 limits effective January 1, 2026 represent a doubling of most coverage requirements. This is critical exam information as Hawaii increased requirements to address rising accident costs and medical expenses.

Required Coverage Components

1. Bodily Injury Liability (BI)

Coverage:

• Pays for injuries to other people when you are at fault
• Covers medical bills, lost wages, pain and suffering
• Legal defense costs included

Minimum Limits (2026):

• $40,000 per person injured in one accident
• $80,000 total for all injuries in one accident
• Written as 40/80

Example:

• Driver causes accident injuring 3 people
• Injuries: Person A ($60,000), Person B ($30,000), Person C ($25,000)
• Total damages: $115,000
• 40/80 policy pays: $40,000 (Person A), $30,000 (Person B), $10,000 (Person C) = $80,000 total
• Driver personally liable for remaining $35,000

2. Property Damage Liability (PD)

Coverage:

• Pays for damage to other people's property when you are at fault
• Covers vehicles, buildings, fences, utility poles, etc.
• Legal defense costs included

Minimum Limit (2026):

• $20,000 per occurrence (increased from $10,000)
• Written as 20 in 40/80/20

Example:

• Driver causes accident damaging 2 vehicles and fence
• Vehicle 1 damage: $15,000
• Vehicle 2 damage: $8,000
• Fence damage: $2,000
• Total: $25,000
• Policy pays: $20,000 maximum
• Driver personally liable for remaining $5,000

3. Uninsured Motorist Coverage (UM) - MANDATORY

Coverage:

• Pays for your injuries when hit by uninsured driver
• Also covers hit-and-run accidents
• Covers you and passengers in your vehicle

Mandatory Minimum (2026):

• $40,000 per person injured
• $80,000 total per accident
• Must match Bodily Injury Liability limits (40/80)

Key Change in 2026:

• UM coverage is now MANDATORY (previously optional)
• Minimum increased from $20,000 to $40,000 per person
• Insurers must offer UM coverage; policyholders must purchase it

UM Coverage Trigger:

• Accident caused by driver with no insurance
• Hit-and-run (unidentified driver)
• Accident with stolen vehicle (no coverage available)

Exam Tip: Hawaii made UM coverage MANDATORY effective January 1, 2026. Prior to 2026, insurers had to offer it but policyholders could reject it. Now it is required at $40,000 per person minimum.

4. Underinsured Motorist Coverage (UIM) - MANDATORY

Coverage:

• Pays when at-fault driver has insurance but insufficient limits
• Covers the gap between their limits and your damages
• Protects you when other driver is underinsured

Mandatory Minimum (2026):

• $40,000 per person injured
• $80,000 total per accident
• Must match Bodily Injury Liability limits (40/80)

Key Change in 2026:

• UIM coverage is now MANDATORY (previously optional)
• Minimum increased from $20,000 to $40,000 per person

UIM Example:

• At-fault driver has minimum 40/80 liability
• Your injuries total $100,000
• At-fault driver's insurance pays: $40,000
• Your UIM coverage pays: Up to $40,000 additional
• Total recovery: Up to $80,000 (your $60,000 gap not fully covered)

UIM Limits:

• UIM limits up to (but not greater than) your BI liability limits
• Can purchase higher UIM if you have higher BI liability
• Example: 100/300 BI allows 100/300 UIM

5. Personal Injury Protection (PIP) - No-Fault Coverage

Coverage:

• Pays medical expenses and lost wages regardless of fault
• "No-fault" benefits—no need to prove other driver at fault
• Covers you, passengers, and pedestrians hit by your vehicle

Minimum Coverage (No Change in 2026):

• $10,000 per person per accident
• Covers medical, hospital, lost income, funeral expenses

PIP Pays For:

• Medical and hospital expenses
• Rehabilitation costs
• Lost income (80% of usual earnings)
• Essential services (childcare, housekeeping if injured)
• Funeral expenses (up to $2,000)

PIP Coordination:

• PIP is primary (pays before health insurance)
• Reduces health insurance claims
• No deductible applies to PIP in Hawaii
• Not subject to tort liability threshold

Hawaii Auto Insurance Summary Table

Why Hawaii Increased Minimum Requirements

Justification for 2026 Changes

Hawaii increased auto insurance minimums due to several factors:

1. Rising Medical Costs

• Hawaii has highest healthcare costs in U.S.
• Average hospital stay: $15,000-30,000+
• Serious injury treatment: $100,000-500,000+
• Old $20,000 per person minimum insufficient

2. High Cost of Living

• Hawaii has highest cost of living in nation
• Lost wages and income replacement costs higher
• Property damage (vehicle replacement) more expensive
• Average new car price: $45,000+ in Hawaii

3. Uninsured Motorist Problem

• Estimated 10-15% of Hawaii drivers uninsured
• Victims of uninsured drivers often undercompensated
• Mandatory UM/UIM protects innocent victims

4. Inadequate Coverage for Serious Accidents

• Multiple-victim accidents quickly exhaust 20/40 limits
• Permanent injuries require lifetime care (expensive)
• Old limits from 1980s no longer realistic

Financial Responsibility Requirements

Hawaii requires proof of financial responsibility for all registered vehicles.

Proof of Insurance

Acceptable Proof:

1. Insurance Identification Card - Provided by insurer with policy number, coverage dates, vehicle information
2. Electronic Proof - Photo of insurance card on mobile device accepted
3. Certificate of Self-Insurance - For businesses self-insuring fleets

When Proof Required:

• Vehicle registration and renewal
• Traffic stops and police checks
• After accidents (provide to other driver and police)
• Court appearances for traffic violations

Invalid Proof:

• Expired insurance cards
• Policies from non-admitted insurers (must be Hawaii-licensed)
• Out-of-state policies (for Hawaii residents)

Penalties for No Insurance

Criminal Penalties:

• First offense: Fine up to $500, possible 3 months imprisonment
• Subsequent offenses: Fine up to $5,000, possible 1 year imprisonment
• License suspension until proof of insurance provided

Civil Penalties:

• Vehicle registration suspension
• Impoundment of vehicle
• SR-22 filing requirement (3 years)
• Higher insurance premiums after reinstatement

After Accident Without Insurance:

• Personal liability for all damages
• License suspended until damages paid
• Cannot register vehicles until compliance
• SR-22 required for 3 years after reinstatement

Optional Coverages

While Hawaii requires minimum coverages, additional optional coverages are available:

Higher Liability Limits

Recommended Limits:

• 100/300/100 (common recommendation)
• 250/500/100 (for higher net worth individuals)
• 500/1,000/500 (maximum offered by most insurers)

Why Higher Limits:

• Better protection against lawsuits
• Protects personal assets beyond minimum
• Often only slightly higher premiums
• Peace of mind

Collision Coverage

Coverage:

• Pays for damage to your vehicle from collision
• Covers single-car accidents, rollovers, collisions with objects
• Subject to deductible ($250-1,000 typical)

Not Required:

• Optional coverage
• Lenders require if vehicle financed
• Recommended for newer vehicles

Comprehensive Coverage

Coverage:

• Pays for damage to your vehicle from non-collision perils
• Theft, vandalism, fire, falling objects, glass breakage
• Weather damage (except flood), animal strikes
• Subject to deductible ($250-1,000 typical)

Not Required:

• Optional coverage
• Lenders require if vehicle financed
• Recommended for all vehicles

Rental Reimbursement

Coverage:

• Pays for rental car while your vehicle is being repaired
• Typical limits: $30-50 per day for 30 days
• No deductible

Towing and Labor

Coverage:

• Pays for towing and roadside assistance
• Flat tire, dead battery, lockout service
• Typical limit: $75-150 per incident

Special Hawaii Auto Insurance Considerations

Military Personnel

SCRA Protections:

• Servicemembers Civil Relief Act provides protections
• Deployment may allow policy suspension or adjustment
• Premium reductions for deployed service members
• Special considerations for off-island deployment

Hawaii Military Bases:

• Pearl Harbor, Schofield Barracks, Marine Corps Base Hawaii
• Large military population requires specialized understanding
• On-base vs. off-base residence considerations

Young Drivers

Challenges:

• Hawaii has high teen driver accident rates
• Limited public transportation increases youth driving
• Higher premiums for drivers under 25
• Good student discounts available (often 10-20% savings)

Moped and Motorcycle Coverage

Requirements:

• Same minimum liability limits as automobiles (40/80/20)
• Same UM/UIM requirements (40/80)
• Same PIP requirements ($10,000)
• Higher risk = higher premiums

Unique Hawaii Considerations:

• Mopeds popular in Hawaii (fuel economy, traffic)
• Year-round riding season
• Higher accident rates on two-wheelers