8.4 Hawaii Motor Vehicle Financial Responsibility (HRS Chapter 287)
Key Takeaways
Proof of financial responsibility is proof of ability to respond in damages for liability from accidents occurring after the proof is filed, in the amounts the motor vehicle law prescribes (HRS § 287-1).
The chapter is administered by each county's chief of police or director of finance, called the administrator (HRS § 287-1).
Proof is required after license suspensions or revocations for listed offenses, such as impaired driving and driving while suspended, and after certain moving violations in accidents causing injury, death, or apparent property damage over $3,000 (HRS § 287-20).
Proof may be given by an insurer's certificate of insurance, a surety bond, a $25,000 deposit of cash or bonds, or a certificate of self-insurance (HRS §§ 287-21, 287-22, 287-35, 287-36, 287-42).
An owner may give proof for an employed driver or a member of the owner's immediate family or household, and the administrator notes the resulting restriction on that person's license (HRS § 287-37).
8.4 Hawaii Motor Vehicle Financial Responsibility (HRS Chapter 287)
Hawaii requires every registered motor vehicle to carry no-fault insurance (8.1). A separate, older law — the motor vehicle financial responsibility provisions of HRS chapter 287 — adds a second layer for drivers who have shown they are high risk. They must file proof of financial responsibility before they may drive again, and keep it on file. The adjuster outline lists the definition (§ 287-1) and the proof required (§§ 287-20, 21, 22 and 37).
Definitions (§ 287-1)
- Proof of financial responsibility — proof of ability to respond in damages for liability, on account of accidents occurring after the effective date of the proof, arising out of the ownership, maintenance or use of a motor vehicle, in the prescribed amounts. The definition originally referred to § 294-10(a); that provision was repealed, and the current amounts are those in § 431:10C-301 (8.1). Chapter 287's owner's-policy section (§ 287-25) still prints older figures ($10,000/$20,000/$5,000), but new and renewal motor vehicle policies effective on or after January 1, 2026 must meet the 40/80/20 compulsory minimums.
- Administrator — the chief of police or the director of finance of each county, and their authorized subordinates.
- Judgment — a final judgment (no appeal pending, or affirmed) for damages arising from the ownership, maintenance or use of a motor vehicle, including damages for bodily injury, death or property damage, or a judgment on a settlement agreement for those damages.
- Motor vehicle — as defined in chapter 286, including trailers and semitrailers, but excluding road rollers, farm tractors, tractor cranes, power shovels and well drillers.
- Nonresident's operating privilege — the privilege of a nonresident to drive in Hawaii, or to use a vehicle the nonresident owns in Hawaii.
Note the forward-looking nature: proof covers future accidents. It does not pay a past claim, which is why the adjuster's role is mainly to recognize when a claimant or insured is subject to the requirement and to confirm the insurer's certificate filings.
When Proof Is Required (§ 287-20)
After License Suspension or Revocation
When a driver's license has been suspended or revoked:
- under the impaired-driving laws (§ 291E-65 or part III of chapter 291E, with listed exceptions);
- upon conviction of any offense, unless the same conduct already triggered a proof requirement under part III of chapter 291E; or
- for minors, under part V of chapter 571 (family court),
the person may not be relicensed, and may not drive, until the person files and then maintains proof of financial responsibility.
The requirement does not apply to:
- certain first-offense impaired-driving suspensions under §§ 291E-61(b)(1) and 291E-64(b)(1);
- a conviction of a moving violation alone;
- an administrative license suspension under chapter 291A;
- a provisional license suspension under § 286-102.6(d); or
- the first conviction within five years for driving without motor vehicle insurance. That offense carries its own penalties under § 431:10C-117 (8.1).
When the Court Does Not Suspend
For listed offenses where the court could have suspended or revoked the license but did not, the administrator must suspend the license 30 days after conviction or adjudication. The suspension continues until the person files and maintains proof (§ 287-20(b)). The offenses are:
- reckless or inattentive driving;
- operating under the influence of an intoxicant, intoxicating liquor, or drugs;
- driving while the license is suspended or revoked (except a suspension for a first conviction of driving uninsured); and
- any moving violation by a person involved in an accident in which someone is killed or injured, or in which property damage apparently exceeds $3,000, if there are reasonable grounds to believe the person was at fault.
A person who has no valid license when convicted of a listed offense may not be licensed until proof is filed and maintained (§ 287-20(c)).
How to Give Proof (§ 287-21)
Proof may be given by filing one of the following with the administrator:
| Method | Requirements |
|---|---|
| Certificate of insurance (§ 287-22) | Written certificate of an insurer authorized in Hawaii that a motor vehicle liability policy is in effect for the person. The certificate's effective date must match the policy's, and it must describe all covered vehicles unless the policy is issued to a non-owner (a driver's policy) |
| Bond (§ 287-35) | Bond of an authorized surety company, or of two individual sureties owning Hawaii real estate with equity of at least twice the bond amount (approved by the commissioner). The bond is not cancelable without 10 days' written notice to the administrator |
| Deposit (§ 287-36) | The administrator's certificate that the person deposited $25,000 in cash or bonds, with evidence of no unsatisfied judgments in the person's county |
| Self-insurance (§ 287-42) | A person with more than 25 vehicles registered in its name may obtain a certificate of self-insurance, plus an agreement to pay judgments as an insurer would. The certificate may be cancelled on five days' notice and hearing, for example for failing to pay a judgment within 30 days after it becomes final |
Owner's and Driver's Policies
- An owner's policy covers the named insured and permissive users of the described vehicles (§ 287-25).
- A driver's policy covers the named insured while driving vehicles the insured does not own, with the same limits (§ 287-26). It suits a person who must file proof but owns no car.
Nonresidents (§ 287-23)
A nonresident owner of a vehicle not permanently registered in Hawaii may file a certificate from an insurer authorized in the state where the vehicle is registered (or where the insured resides, if the nonresident owns no vehicle). The insurer must give the insurance commissioner a power of attorney to accept service of process for Hawaii motor vehicle actions, and must agree that the policy conforms to Hawaii law. If an unauthorized carrier defaults, its certificates are no longer accepted.
Proof by the Owner for Others (§ 287-37)
When a person required to give proof is or becomes a driver employed by an owner, or a member of the owner's immediate family or household, the administrator must accept proof given by the owner instead. The person may then drive the owner's vehicles for which proof was given, and the administrator notes the restriction on the person's license.
When Proof Stops Working (§ 287-39)
If filed proof no longer serves its purpose — for example, the certified policy is cancelled — the administrator must require other proof and suspend the license and registration (or nonresident operating privilege) until new proof is filed.
Why This Matters to an Adjuster
- Coverage verification. A policy certified as proof of financial responsibility is an owner's or driver's motor vehicle liability policy issued by an authorized insurer (or a qualifying out-of-state insurer). Cancelling it triggers notice obligations and a new proof requirement for the insured.
- Underwriting and JUP placement. Drivers who must file proof are often in the Joint Underwriting Plan's assigned-risk or serious-conviction classes (8.3).
- Claims involving uninsured drivers. An uninsured at-fault driver may later face proof requirements, but proof does not apply to the past accident. The injured person's recovery comes from PIP, UM coverage, or the JUP's assigned claims (8.1–8.3).
Under HRS § 287-1, what does proof of financial responsibility cover?
Liability for accidents after the proof takes effect
Damages from the accident that caused the license suspension
Only property damage to the driver's own vehicle after a collision
Unpaid traffic fines owed to the county
Which of the following is not one of the methods of giving proof of financial responsibility listed in HRS chapter 287?
A certificate of insurance from an insurer authorized in Hawaii
A surety bond filed with the administrator
A deposit of $25,000 in cash or bonds
A notarized personal promise to pay future judgments
A young driver required to file proof of financial responsibility lives with her parents, who own two cars. How can she satisfy the requirement under HRS § 287-37?
She may drive only rental cars until she turns 25
She is exempt from the requirement because she does not own a car
Her parent, as owner, may give proof for her as a member of the household
She must buy a separate driver's policy, because family members may not give proof for each other
Sections you finish are checked off in the contents.