Hawaii car insurance

All kama'aina know Hawaii is an expensive place to live.

Fortunately, car insurance is a notable exception: a typical Hawaii driver pays about $118 a month, or $1,411 a year, for full coverage in 2026, the lowest average in the country.

In part, Hawaii's low auto insurance prices are due to the islands' unique geography. Drivers here log far fewer miles than most mainland drivers. And the 2024 traffic-fatality rate was well below the national average, at 7.1 deaths per 100,000 residents versus 11.5 nationwide.¹

Hawaii also bars insurers from charging a higher premium due to your age, sex, or credit score.

This article covers how the law works, the minimum requirements, and how to save on your Hawaii policy.

Hawaii is the cheapest state in the country for car insurance. A typical Hawaii driver pays about $118 a month ($1,411 a year) for full coverage, and about $45 a month ($536 a year) for a state-minimum policy.

For a full coverage policy (including collision and comprehensive coverage), that price runs well below the roughly $2,245-a-year average across all states plus the District of Columbia.

Hawaii requires every registered vehicle to carry 40/80/20 liability coverage, plus at least $10,000 in personal injury protection (PIP).

These limits took effect January 1, 2026, doubling the old 20/40/10 limits. They apply to any policy issued or renewed on or after that date.²

The Hawaii Insurance Division says that doubling the old limits may increase the premiums on state minimum policies by about 25 percent on average, though any individual driver's premium increase may be higher or lower than that figure.³

What is Hawaii's no-fault PIP insurance system?

Hawaii is a no-fault state. That means your own personal injury protection coverage (PIP) pays your medical bills after a crash, up to your limit, no matter who caused it.

Basic PIP in Hawaii covers at least $10,000 per person in accident-related medical care.

The law does let you step outside the no-fault system and sue an at-fault driver in limited cases, including when your PIP benefits incurred reach at least $5,000, or when the crash causes death, a significant permanent loss of use of a body part or function, or permanent and serious disfigurement.⁴

You can also buy optional add-ons to your policy, such as wage-loss benefits and a death benefit, though these are not mandatory.

GEICO currently has the lowest average premiums in the state, at about $80 a month. They are closely followed by USAA at $89, and Island Insurance, a Hawaii-based company, which comes next at about $121 a month.

Which Hawaii car insurers have the best claims service?

Price is just one factor. When evaluating auto insurance options, comparing policy costs alongside customer satisfaction ratings and claims handling records provides a more complete picture of an insurer's service.

According to J.D. Power's 2025 U.S. Auto Claims Satisfaction Study, USAA received the highest score among insurers available in Hawaii.⁵

Hawaii prohibits insurers from pricing based on personal credit score, age, sex, and length of driving experience.⁶

Hawaii insurers also cannot charge extra for a coverage lapse, unless you have been convicted of driving without insurance within the last three years.⁷

This means that other factors like your driving record, location, vehicle make and model, and how much you drive take on that much more importance.

How do violations affect Hawaii car insurance rates?

On average, a single speeding ticket causes average Hawaii premiums to increase by about 20%, while an at-fault accident causes premiums to increase by about 44%. 

A DUI conviction spikes Hawaii premiums by about 249%. 

Hawaii car insurance rates by island

Effective October 1, 2026, Hawaii insurance carriers can no longer set prices based on your ZIP code. Kahala gets priced the same as Kahuku and Kalihi under this model, and Lahaina gets the same treatment as Kihei.

Under Commissioner's Memorandum 2026-2PC, carriers can still set prices by county, provided it is actuarially supported by the data and approved by the Commissioner.⁸

In general, urban areas have higher premiums than rural areas, due to higher traffic, more property crime, and higher repair costs. It's reasonable to expect Honolulu County (Oahu) premiums to be higher than premiums on the neighbor islands. But the full effect of the change to the county-based pricing system remains to be seen.

What is the impact of Hawaii's ban on credit-based underwriting?

Hawaii is one of just four states to prohibit insurers from using personal credit scores to set premiums.⁶ In most of the country, drivers with poor credit typically pay about 2.4 times the premium charged to drivers with excellent credit. But in Hawaii, there's no such "bad credit" penalty.

Hawaii also bars insurers from charging more for age and sex.

As a result, your driving record and vehicle carry more weight in setting rates than in most other states.

If you have a Permanent Change of Station (PCS) to Hawaii and keep your car registered in your home state, you can usually keep those plates. But you still need insurance that meets Hawaii's requirements to drive legally on Hawaii's roads.

To drive on Hawaii roads, your vehicle needs a current Hawaii safety-inspection sticker, and you cannot pass inspection without proof of insurance that meets the state's 40/80/20 and PIP minimums.⁹

Whether you keep your mainland policy or start a new one, confirm it is rated for Hawaii and lists the county where you park the car.

USAA and GEICO both write coverage in Hawaii, so many service members can keep their current company and simply update their address.

If you're new to the Islands, use Luva to pull fresh quotes right after you move, the day your vehicle arrives, or the day you buy a new one.

The best way to find cheap car insurance in Hawaii is to gather personalized, up-to-the-minute quotes from multiple carriers. Here are a few tips:

• Compare at least three companies. In Hawaii, rates between carriers can vary, so getting quotes from three or more companies is worth the time to find a competitive price. Use Luva to compare multiple quotes from different carriers all in one place.

• Shop local. Get a quote from carriers like Island Insurance, a Hawaii-based company, alongside the well-known national chains.

• Drive safely. With credit, age, experience, and sex all prohibited as rating factors, your individual driving history is critical. A single DUI conviction can more than triple your premium.

• Choose a higher deductible. Increasing your deductible from $500 to $1,000 can mean a big reduction in your monthly car insurance premium. But don't set it so high that you can't quickly recover from a covered loss.

• Ask about discounts: Defensive-driving course completion, multi-car, and paid-in-full discounts are all allowed in Hawaii.