Moving to Hawaii? One of the first things you’ll need to sort out is car insurance. The good news: Hawaii’s car insurance rates are actually lower than the national average. The not-so-good news: Hawaii is a no-fault state with its own unique requirements that can trip up newcomers.
Here’s everything you need to know about car insurance in Hawaii — from minimum requirements to average costs and how to save money on your premiums.
Hawaii Car Insurance Requirements
Hawaii is one of 12 no-fault states in the U.S., which means your own insurance pays for your injuries regardless of who caused the accident. The state requires all drivers to carry:
- Personal Injury Protection (PIP): $10,000 minimum — covers your medical expenses and lost wages after an accident
- Bodily Injury Liability: $20,000 per person / $40,000 per accident — pays for injuries you cause to others
- Property Damage Liability: $10,000 — covers damage you cause to someone else’s property
This is commonly written as 20/40/10 coverage. Hawaii also requires you to carry uninsured motorist coverage — though you can reject this in writing if you choose.
One thing that catches mainlanders off guard: Hawaii’s minimum liability limits are relatively low. If you cause a serious accident, $20,000 per person won’t go far with Hawaii’s medical costs. Most insurance agents on the islands recommend at least 100/300/100 coverage.
Average Car Insurance Costs in Hawaii (2026)
Hawaii drivers pay less than the national average for car insurance, which is one of the few cost-of-living wins you’ll get on the islands. Here’s what you can expect:
| Coverage Type | Monthly Average | Annual Average |
|---|---|---|
| Minimum (state required) | $34 – $59 | $410 – $710 |
| Full Coverage | $82 – $143 | $980 – $1,720 |
| National Full Coverage Average | $132 | $1,582 |
Rates increased about 6% from 2024 to 2025, following a larger 27% jump the year before. Premiums appear to be stabilizing, but don’t expect them to decrease anytime soon — especially with tariffs affecting vehicle and parts costs.
Car Insurance Costs by Island
Where you live on the islands makes a difference. Honolulu (Oahu) tends to have the highest rates due to traffic density and theft rates, while the neighbor islands are generally cheaper.
| Location | Avg. Annual Full Coverage |
|---|---|
| Honolulu (Oahu) | $1,705 |
| Hilo (Big Island) | $1,100 – $1,300 |
| Kahului (Maui) | $1,200 – $1,400 |
| Lihue (Kauai) | $1,000 – $1,200 |
If you’re deciding which Hawaiian island to live on, insurance costs are just one more factor to consider. The neighbor islands offer savings on more than just rent.
Cheapest Car Insurance Companies in Hawaii
Not all insurers charge the same rates. Based on 2026 data, here are some of the most affordable options:
- GEICO — Consistently the cheapest for full coverage in Hawaii, averaging around $1,317/year
- USAA — If you’re military or a dependent (and there are plenty of military families in Hawaii), USAA typically offers the lowest rates of all
- State Farm — Competitive rates with strong local agent presence across the islands
- First Insurance Company of Hawaii — A local insurer that understands island-specific risks like volcanic activity and salt air corrosion
- Island Insurance — Another local option with good knowledge of Hawaii-specific coverage needs
Pro tip: Always get at least 3-4 quotes. Hawaii’s insurance market has both national carriers and local companies, and rates can vary by hundreds of dollars for the same coverage.
What Affects Your Hawaii Car Insurance Rates
Your premium depends on several factors:
Your Location
Honolulu ZIP codes generally cost more. Areas like Waikiki and downtown Honolulu see more accidents and vehicle break-ins. Rural areas on the Big Island or Kauai tend to be cheaper.
Your Driving Record
A clean record is the single biggest factor. One at-fault accident can increase your premium by 30-50%. A DUI can nearly double it.
Your Vehicle
Older, modest vehicles cost less to insure. That rusty but reliable Toyota Tacoma you see everywhere on the islands? Cheap to insure. A new luxury SUV? Not so much. Salt air and humidity also mean higher comprehensive claims, which insurers factor in.
Your Credit Score
Hawaii is one of the states where insurers can use your credit-based insurance score to set rates. A good credit score can save you hundreds per year.
Your Age and Gender
Drivers under 25 pay significantly more. Rates typically drop in your mid-20s and reach their lowest in your 50s and 60s.
Hawaii’s No-Fault Insurance: What It Means for You
Hawaii’s no-fault system means that after an accident, you file a claim with your own insurer first — regardless of who was at fault. Your PIP coverage handles your medical bills and a portion of lost wages.
You can only sue the other driver if your injuries meet certain thresholds, such as:
- Medical expenses exceeding your PIP limit
- Permanent disfigurement
- Permanent loss of a body function
- Death
This system keeps minor fender-benders out of court and generally means lower premiums. But it also means you need adequate PIP coverage — the $10,000 minimum can run out fast with Hawaii’s healthcare costs.
How to Save on Car Insurance in Hawaii
Here are practical ways to lower your premiums:
- Bundle home and auto: Most insurers offer 10-25% discounts for bundling. If you’re renting in Hawaii, a renter’s insurance bundle works too.
- Raise your deductible: Going from a $500 to $1,000 deductible can cut your premium by 15-20%.
- Ask about discounts: Good student, military, safe driver, low mileage, anti-theft device — stack them up.
- Consider dropping collision on older cars: If your car is worth less than $5,000, the math often doesn’t justify collision coverage.
- Drive less: Many insurers offer low-mileage discounts. If you live and work in a small town on a neighbor island, you might qualify.
- Take a defensive driving course: Hawaii-approved courses can knock 10% off your premium for three years.
Registering Your Car and Getting Insurance After Moving
When you move to Hawaii, you have 30 days to register your vehicle and get Hawaii auto insurance. Here’s the process:
- Get Hawaii car insurance — Contact insurers before you arrive. You’ll need a Hawaii policy before you can register.
- Get a safety inspection — Hawaii requires annual safety inspections at certified stations. Cost: about $20.
- Visit the county DMV — Bring your mainland title, proof of insurance, and safety inspection certificate.
- Get a Hawaii driver’s license — You’ll need this within 30 days too. Check our guide to getting a Hawaii driver’s license for the full process.
If you’re shipping your car to Hawaii, make sure your insurance covers transit. Some policies have gaps during ocean shipping — ask your insurer specifically about this.
Frequently Asked Questions
Is car insurance expensive in Hawaii?
No — Hawaii’s car insurance rates are actually below the national average. Full coverage averages $980 to $1,720 per year compared to the national average of about $1,582. Minimum coverage can be as low as $34 per month. However, rates vary significantly based on your location, driving record, and vehicle.
Is Hawaii a no-fault insurance state?
Yes. Hawaii is one of 12 no-fault states. This means your own Personal Injury Protection (PIP) coverage pays for your medical expenses after an accident, regardless of who caused it. You can only sue the other driver if injuries meet specific severity thresholds.
What is the minimum car insurance required in Hawaii?
Hawaii requires 20/40/10 liability coverage ($20,000 per person/$40,000 per accident for bodily injury, $10,000 for property damage) plus $10,000 in Personal Injury Protection (PIP). Uninsured motorist coverage is also required unless you reject it in writing.
Can I keep my mainland car insurance when I move to Hawaii?
No. You must switch to a Hawaii-specific auto insurance policy within 30 days of establishing residency. Your mainland policy won’t meet Hawaii’s no-fault PIP requirements. Start shopping for Hawaii insurance before your move so you’re covered when you arrive.