Hawaii Auto Insurance Quotes and
Coverage Guide
Hawaii Motor Vehicle Insurance
Questions & AnswersQ: Is
auto insurance mandatory?
A: Yes. Hawaii’s minimum liability auto
insurance is 20/40/10 and Personal Injury Protection
(PIP) of $10,000. For those who don’t speak
insurance-ese, that means you must be covered to pay
up to $20,000 in medical expense for injuries to one
person, up to $40,000 for all people hurt in an
accident, and up to $10,000 for any property damage
you’ve caused from your wild driving spree after
that luau on the beach. Or even from the completely
innocent accident that happened when you swerved
just a little to avoid that coconut that had fallen
into the road and hit the guy driving next to you
who was yelling to his kids, “Hey, look! There’s a
coconut in the road!”
PIP coverage is for for you, passengers in your car,
pedestrians, bicyclists, or moped riders who sustain
auto accident-related injuries (regardless of fault)
. Maybe even errant surfers who mistake your
blue-colored car for a really big wave – ask your
agent.
Q: Is Hawaii a "no-fault" state?
A: Yes. Hawaii is what is known as a
“no-fault” state. In the event of an accident, each
policyholder’s own insurance company compensates
him/her for the cost of minor injuries, regardless
of who caused the wreck. Sort of like when one of
your kids bonks his brother, you’re the one who pays
to get the boo-boo fixed, no matter which one did
the bonking. Except since insurance companies rarely
spank, you might be forced to sit in a corner
instead. In a courtroom. With your attorney. And no
gum chewing or making faces allowed.
Q: Can I still sue or be sued?
A: You can sue or be sued for recovery of
property damages with no restrictions. You can sue
or be sued for recovery of bodily injury expenses –
if certain monetary thresholds or other
circumstances occur such as:
-- The injured party has medical bills equal to or
exceeding the tort threshold of $5,000.
-- The injury is such that a part or function of the
body is lost, or permanent and serious disfigurement
results.
-- Injury results in death.
And if you find yourself in this situation as either
plaintiff or defendant in a lawsuit of this nature,
it is highly recommended from qualified
professionals in the field to abstain from the
above-mentioned gum-chewing and/or face-making – but
only if you intend on having a prayer of winning.
Q: What if I fail to keep insurance on my vehicle
that I’ve registered in Hawaii?
A: You must immediately surrender your
registration and license plates to the County
Director of Finance. If you make the silly decision
to drive after that, and the Hawaii Five-O catch
you, here are first-offense penalties:
-- A fine of $500 or 75-100 hours of community
service (Somebody’s got to pick up those coconuts in
the road.)
-- Suspension of your driver's license for three
months, or the vehicle's driver or registered owner
must keep a non-refundable insurance policy in force
for six months
-- Two months of listening to old Don Ho recordings.
Q: If I’m in an accident, how soon afterward will
insurance benefits be paid?
A: Your insurer is required by law to pay
Personal Injury Protection (PIP) benefits within 30
days after you supply proof of loss, unless you have
been informed in writing that additional information
is necessary or that your claim has been denied. If
benefits you are owed are not paid within 30 days,
your insurance company must pay 1.5% interest per
month on the unpaid amounts. This could be better
interest than your savings account at the bank, but
don’t count on it to put your child through college.
Q: Can an insurance company to which I’ve applied
legally decline me?
A: Yes. However, if they don’t offer you
coverage through the Hawaii Joint Underwriting Plan,
they can get in really big trouble and could wind up
picking coconuts up off the road. But before you
jump in and agree to placement with the HJUP, shop
around – you very well might get a better price and
service looking around on your own.
Q: How important is it from whom I buy my
insurance?
A: Well, you probably want to avoid the guy
on the beach with the $5 policies stuffed in his
Speedos who hands you a card that says “The Big
Kahuna Insurance Co.” Unless he can show you his
license authorized by the State of Hawaii and has a
Standard & Poor financial rating, I’d ease on down
the road to a more credible place of business. I’d
also check to make sure I still had my wallet.
Q: How are insurance costs decided?
A: Auto insurance pricing depends on several
factors – none of them having anything to do with
the fact you were rumored to have made faces and
chewed gum in court:
-- Which county you reside in
-- How you use your car
-- How many at-fault wrecks or driving violations
you have on your record
-- What kind of car you drive
-- The limits, deductibles, and coverage you’ve
selected
-- Any discounts that can be applied
-- How often you’ve been seen picking up coconuts
along the roadside.
One pleasant note to end with: At the present,
Hawaiian law prohibits any increase in premiums
resulting from an accident that was not your fault.
It’s true: They won’t up your bill for getting the
stuffing knocked out of you by the Speed Racer who
ran the stop sign and creamed you. Wonders never
cease!
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