The Best and the Cheapest Automobile Insurance in Hawaii (2021)
If you live in The Aloha State and are looking for car insurance, there’s some good news. You will likely pay less than the national average rate for automobile insurance. Hawaii drivers, research shows, have to cough up 13% less for coverage.
That said, you can sweeten the deal even further. Of course, with a little help from us.
We thoroughly researched multiple players in The Islands of Aloha and have listed the top performers. If you want the best bang for your buck, all you have to do is check our list.
But we didn’t stop at grading insurance companies. We have explained Hawaii insurance laws in plain English, without any technical mumbo-jumbo, and also provided tips that can help you lower the monthly insurance bill by as much as 60%.
The Best Car Insurance in Hawaii
- Allstate — Overall Winner
- GEICO — The Cheapest Option
- Liberty Mutual — The Best for Car Repair Insurance
- USAA — The Best for Military
The Overall Winner: Allstate
Allstate is the fourth largest car insurer in the US, but does it live up to its “good hands” promise in The Islands of Aloha?
It provides dependable coverage to Hawaii drivers at reasonable rates. With an average premium of $129 a month, Allstate is placed second on our list of cheap car insurance Hawaii companies.
However, affordable premiums are not the only reason why we think so highly of Allstate.
It also offers a range of optional coverages that others can’t simply match. The insurer has you covered if you’re looking for not-so-common add-ons such as classic car insurance or sound system insurance.
Allstate also emerges as an appealing option for good drivers whom it offers not one but three types of rebates — Allstate Rewards program, vanishing deductible, and Safe Driving Bonus Check. Now there are not many insurance companies in Hawaii that can lay claim to that.
Also unlike most carriers in The Aloha State, Allstate offers customers a claim satisfaction guarantee. It entitles you to up to a six-month credit on your premium if you didn’t like the way Allstate handled your claim, provided you contact them within 180 days of the crash.
Continuing with the positives, the insurer is in top shape financially. A.M. Best, the US rating agency, gave an “A+” rating to Allstate. Hawaii drivers who chose it, in other words, need not worry about their safety net vanishing down the line.
On top of all this, Allstate puts in a decent show in the customer service department, ranking fourth overall out of 13 insurers. Its NAIC’s score of 0.48 is no less impressive, which implies it receives fewer complaints than other providers relative to its size.
Last but not least, Allstate not only offers auto insurance in Hawaii but also provides a variety of financial services. This makes it an appealing option for all those looking for a reputable, accessible, and affordable one-stop company.
All in all, strong financial strength, an unmatched selection of coverage and discounts, and a price point that promises seriously good value for money make Allstate an all-round winner in Hawaii. Choose Allstate for its cheap car insurance Hawaii rates and superior financial strength.
Look elsewhere if you want the best customer service.
The Cheapest Option: GEICO
Some say slogans are, well, just slogans. Is GEICO’s famous tagline “15 mins of your time could save you 15% or more on car insurance” just another claim that’s too good to be true? Or does the insurer makes good its promise in The Aloha State?
Ranked as the most affordable auto insurer, GEICO is roughly 8% cheaper than its closest competitor. In short, if you are hunting for a cheap Hawaii auto insurer, you may want to start your search with GEICO.
Apart from a good bargain, what else can you expect from this carrier?
Quite a lot, in fact. For one, GEICO’s financial strength is as good as any and better than most. A.M. Best awarded it the highest possible rating of “A++.”
Also, its website and smartphone application have a wide array of features for tech-savvy users. For example, GEICO Hawaii users can use its app to not only request roadside assistance or initiate a claim but also to chat with a company’s representative and locate the cheapest gas station near them.
However, GEICO’s performance is just about average in the customer service department, managing a three-star rating and eighth rank overall out of 13 players. But if that’s not a concern and your priority is low-cost insurance, definitely check out GEICO. Choose GEICO for its best car insurance rates in Hawaii and unmatched financial strength.
Look elsewhere if you can’t live without top-shelf service.
Best for Car Repair Insurance: Liberty Mutual
When an accident happens, the last thing you want is an insurer who adds to your anxiety instead of relieving it. Liberty Mutual, much thanks to its unique Lifetime Repair Guarantee feature, eases your troubles after a crash by taking care of getting your car fixed.
The insurer gets your car repaired at one of its 2000 repair centers across the country and provides a lifetime guarantee on these repairs, making it a good choice for automobile insurance. Hawaii drivers who want a bankable carrier may want to add Liberty Mutual to their list for this reason alone.
Another feature that sets the insurer apart is Better Car Replacement. In case your baby is totaled, you will get a car that is one year newer and has clocked 15,000 miles fewer. Cool, eh?
Continuing with the positives, Liberty Mutual earned an “A+” rating from A.M. Best — a performance that’s just as good as any other insurance provider in Hawaii.
Also, the insurer offers a jaw-dropping deal in all but one city we researched. Liberty Mutual’s rates are the lowest in Maui, Hilo, and Pearl City, but an unexpectedly high price tag in Honolulu pushes its state’s average considerably up.
Its customer service ratings, however, are far from not impressive. It could only manage an average three-star rating and a lowly rank of 9 out of 13 players in J.D. Power regional study.
Nevertheless, Liberty Mutual has enough going for it to warrant a mention in our list of providers with the best auto insurance in Hawaii. Add it to your list if you want unique features or live in a city where it offers a good price. Choose Liberty Mutual if you want unique features or can get a good deal.
Look elsewhere if top-notch customer service is a priority.
Best for Military: USAA
Some auto insurers specialize in low-cost insurance, some others in customer experience, but rarely would you find a carrier that shines in both.
Well, USAA is that rare insurer, offering dependable coverage that’s reasonably priced and well supported by a world-class customer service team. Such an irresistible combination makes it one of the top Hawaii auto insurance providers to watch out for.
What’s more, its financial strength ratings are of top-drawer, too. A.M. Best awards USAA “A++” or “superior” rating. In simple words, you can count on the insurer to keep its end of the bargain when you file a claim.
Also, you can turn to USAA for other insurance products, as well as banking and investing solutions. Pairing multiple products, such as auto insurance with homeowners insurance in Hawaii, can even net you a handsome discount, besides making it easier to pay bills and stay organized.
However, USAA has one glaring shortcoming — it’s not for everyone. You can get coverage only if you are associated with the US Military. Sounds like you? Well, you may be in for a treat.
Choose USAA for its pocket-friendly rates, outstanding customer service, and rock-solid financial health.
Look elsewhere if you don’t qualify.
Cheapest Car Insurance in Hawaii (By City)
Depending on which island you are located on, you may have to pay more or less for auto insurance than the state’s average rate. To find out how the four major cities in the state stack up against each other in this department and which players offer the most attractive bargain in each of them, we grabbed a quote from multiple car insurance companies in Hawaii. Our quote included full coverage limits and was for a 40-year-old driver with a clean driving record.
Honolulu is the capital and most populous city of the US state of Hawaii. Famous for its iconic crescent beach, Honolulu is home to Hawaiian Luau, Mai Tai drink, and Ala Moana Shopping Center — the world’s largest open-air shopping center.
Those looking for low-cost auto insurance in Honolulu, Hawaii, should keep American Family at the top of their shortlist. Its rates are 39% cheaper than its next competitor, GEICO, and customer service is pretty decent. Other names to add to your list include State Farm and Allstate.
Maui, also called “The Valley Isle,” is the second-largest island in The Aloha State. It is famous for its pristine beaches, the iconic Iao Valley State Park, and views of humpback whales (in winter season).
The average Maui car insurance rate is roughly 8% lower than Honolulu’s, with Liberty Mutual and GEICO offering the best value for money. We also recommend State Farm and Allstate, since both offer tons of discount to Hawaii drivers.
Hilo, known also as the Big Island, is famous for Wailuku River State Park and Hawaii Volcanoes National Park. Other attractions include Kaumana Caves, Akaka Falls, Rainbow Falls, and Imiloa Astronomy Center.
When it comes to car insurance, Hilo is just as expensive as Honolulu. Liberty Mutual emerges as the cheapest option, followed by State Farm. Hilo drivers should also check out GEICO and Allstate. While the former is just $2 more expensive than State Farm, Allstate offers add-ons that you may not find elsewhere.
Located along the north shore of Pearl Harbor, Pearl City has a population of more than 26,000 people. It is home to Hawaii’s most famous visitor attraction — Pearl Harbor. Fondly called “Central Oahu”, Pearl City is mainly a residential area with a small-town feel to it.
Pearl City is the second-least expensive city for auto insurance in The Islands of Aloha, with the best bargain coming from Liberty Mutual. Hawaii drivers should also strongly consider getting a quote from GEICO, which enjoys a far better overall rank than Liberty Mutual in the J.D. Power regional study. Of course, you can’t rule Allstate and State Farm out, either. While priced a little on the higher side, American Family can be an appealing option for some, thanks to its superior selection of discounts.
Hawaii Auto Insurance Laws
Minimum Car Insurance Coverage
According to Hawaii’s Department of Commerce and Consumer Affairs, every driver in the state must carry the following minimum auto insurance coverage.
Bodily Injury Liability (BIL) — $40,000 per accident/$20,000 per person — It pays for the injuries you cause to other drivers, passengers, and pedestrians. The maximum limit set is $20,000 per person per accident and $40,000 per accident when multiple people are hurt in a single accident.
Property Damage Liability (PDL) — a $10,000 per accident fee — Your Hawaii auto insurance company will pay for damages you cause to someone else’s property, up to $10,000 per accident.
Personal Injury Protection (PIP) — a $10,000 per accident fee — If you or your passengers sustain injuries in a motor vehicle accident, PIP (also known as “no-fault” insurance) will cover medical expenses — and, in some cases, lost wages.
SR22 Insurance (Hawaii)
Technically speaking, SR22 is not a type of insurance coverage. It is a form that you require from your Hawaii auto insurance company in certain situations, such as after receiving a DUI or DWI citation, getting caught driving without insurance, committing a series of minor violations in a short period of time.
The SR22 form basically serves only one purpose: to show the state you have the minimum coverage and thus are fit to legally drive.
However, an SR22 requirement can spell trouble for the car owner, since it often entails substantial extra expense. While filing fees are as low as $15–25, if you need coverage along with it, you will likely pay a lot more than you otherwise would. How much more? That depends on two things:
- Your choice of Hawaii auto insurance company. Some providers, like Progressive, are not as hard as others on drivers requiring SR22. To get the lowest rate, compare quotes from multiple insurers.
- The violation that led to SR22 filing. The more severe the violation, the greater the insurance rate increase.
However, the good part is that you will not pay a higher rate forever. If you stay insured and keep the driving record clean, you could be paying standard insurance rates as early as after 3 years.
Hawaii Car Insurance for New Residents
As per AAA’s guidelines on Hawaii insurance laws, you must apply for an out-of-state vehicle registration permit within 30 days if your vehicle is registered elsewhere.
Active members of the US military are free to maintain home state vehicle registration.
Price Optimization in Hawaii
It makes sense if your insurance premium increase as a direct result of an accident or a traffic ticket. What doesn’t make sense is a rate increase for no reason at all.
Unfortunately, thousands of Hawaiian drivers pay more for car insurance for no valid reason. Or rather there’s a reason, but that’s nothing to do with risk. Surprised? Don’t be.
Many automobile insurance Hawaii providers, both big and small, also take into account non-risk factors, such as how likely you’re to switch carriers while calculating your rates. If they don’t think you’re not a savvy customer, they’ll try to charge you the maximum amount they think you’ll pay, which they calculate using complex algorithms.
This practice is commonly knowns as price optimization. Many states have come hard on it, but Hawaii is not one of them. If you don’t want your insurer to take you for a ride, shop around a little before policy renewal. This will send them a message that you’ll drop them in a hurry if they try to act smart.
Hawaii No-Fault Insurance Laws
Hawaii is a no-fault state. Every driver gets compensation from their insurer in case of an injury in an accident, regardless of fault. That said, if your injuries meet the threshold, either monetary or injury-related, set by the Hawaii auto law, you can step outside the boundaries of the no-fault system and sue the at-fault driver. For instance, you can file a liability claim against the negligent driver in the Aloha State if your injuries exceed the limits of your PIP coverage or qualify as “serious” under the state’s statutory definition.
How to Get Cheap Insurance in Hawaii
Check Car Insurance Reviews
Locating the best car insurance is not just about finding the cheapest rate. It’s just as important to make sure the insurer is financially sound, offers quality service, and has a wide selection of coverages.
So how can you learn these details about different Hawaii insurers? This guide is a good place to start, which tells you everything you need to know about the top players in the Islands of Aloha.
However, if you want to check out more options than presented here, our car insurance rankings — which covers 24 auto insurers — is just what you need.
Compare car insurance quotes in Hawaii
Auto insurance rates can vary substantially from one automobile insurance Hawaii provider to another. So if you don’t want to pay a penny more than you have to for coverage, compare the rates of multiple providers.
See who provides the highest discounts
The more discounts you tack on, the better. Auto insurers offer various discounts to drivers in Hawaii, including the following:
- Multiple Vehicle Discount — You can net a hefty discount by using the same carrier for two or more vehicles.
- Bunde Discount — Pair car insurance with home insurance or life insurance in Hawaii to get a better rate on each product.
- Good Student Discount — An impressive GPA score can come in handy when you purchase auto insurance. Some insurers offer up to 20% rebate to students with a GPA score of 3.0 or higher.
- Good Driving Record — If your driving record is clean as a whistle, expect lower rates from auto insurers.
- Driving Tracking Habits — Show your carrier you are a safe driver, and they will reward you handsomely.
Frequently Asked Questions
1. How much is car insurance in Hawaii per month?
The average car insurance premium in The Aloha State is $129 a month, according to our research. Our referenced driver was a 40-year-old with a clean driving record. Since each driver is unique, you may have to cough up more or less money for coverage. Statistically speaking, students, new drivers, and high-risk drivers get the short end of the stick.
2. Do you need insurance to register a car in Hawaii?
Yes, you do. Whether you ship a car from another state, purchase a new one from a Hawaii dealership, or buy a used car from someone in Hawaii, you will need the state’s mandated coverage or more to register it. The bare-bone minimum auto coverage in The Islands of Aloha includes bodily injury liability ($40,000 per accident/$20,000 per person), property damage liability ($10,000 per accident), as well as personal injury protection (another $10,000 per accident).
3. Do I need rental car insurance in Hawaii?
If you are vacating in Hawaii and want to rent a car to explore it at your own pace, getting rental car insurance is a good idea. It will cover the rented car in case you are involved in an accident. Rental car insurance rates vary from one carrier to another. Grab quotes from multiple carriers to find out the lowest rate.
4. Does workers’ compensation insurance cover injuries from car accidents in Hawaii?
If it is a work-related injury, workers’ compensation insurance will cover the injuries; otherwise, no. Since Hawaii follows a “no-fault” car insurance system, your carrier will pay the medical bills for injuries sustained by you and your passengers, up to the PIP limit. The default PIP limit is $10,000, but you can increase it if you want extra protection. In certain situations, you can also sue the negligent driver for bodily injury damages.
5. How does Hawaii no-fault car insurance work?
Your automobile insurance Hawaii provider will cover you and your passengers’ injuries, up to the personal injury protection (PIP) coverage limit.