Hawaii Auto Insurance Rates, Minimum State Requirements and Penalties

Having Hawaii auto insurance is vital to protect yourself in case of an accident. Hawaii is one of the few states that have seen a decrease in auto insurance rates within the last year. This is promising to those who need coverage in Hawaii. If you are looking for ways to save money on car insurance in Hawaii, consider these important facts.

Fact #1 You Should Meet the State Requirements
Hawaii is a no fault state which means that no matter who is at fault in an accident, your insurance company will pay for your damages and the other person's insurance company will pay for their damages. No fault states also greatly limit your chance to suit another person for damage or injury.

Because you are responsible for your situation regardless of fault, Hawaii auto insurance requirements must be met to be in compliance with state laws. State law requires that you carry $40,000 per accident and $20,000 per person in bodily injury coverage. The law also requires that you carry a minimum limit of $10,000 in property damage liability coverage and $10,000 in personal injury protection. This type of coverage is sometimes called 20/40/10.

If you are in an auto accident in Hawaii and do not carry the required Hawaii auto insurance minimums, there are consequences. You are subject to fines, jail time, and the loss or suspension of your license. It may be difficult to fit auto insurance into your monthly budget, but the ramifications of going with insurance in a no-fault state are much more financially damaging.

Fact #2 You Should Choose a Licensed Company
The Hawaii Department of Insurance only gives licenses to companies who have meet certain requirements. A Hawaii auto insurance company must be registered and licensed with the Department of Insurance in order to sell insurance in the state. This just ensures that the consumer is protected in the case of a company folding or fraud taking place.

Some companies are not licensed because they don't have a proven track record. The state researches a company's reputation as well as their financial standing. There are independent rating companies such as Standard and Poor's that rate a company based on their income to debt ratio, their ability to meet financial obligations, and their membership.

Choosing a licensed agency will give you protection as well as a way to file a complaint should your Hawaii auto insurance needs not be met. The choice of an auto insurance policy should not just be based on price. It should be based on reliability and reputation as well. If you do your own research, check out a company with the Hawaii Department of Insurance, and compare quotes, you should be able to find a good deal.

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In addition to the $20,000 per person bodily damage requirement, your policy for Hawaii auto insurance must include a minimum of $10,000 worth of coverage for property damage.

Policies for Hawaii auto insurance have experienced a decrease in annual rates during the past year.

Check additional valuable information of your State Insurance department organization.
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