If you’re looking for the best car insurance in Hawaii, it’s important to shop comparatively.
Researching quotes, policies, and reviews from several companies can give you insight into how well insurance providers serve their customers and help you find a policy that best suits your needs and budget.
Research the answers to more questions than just, “How much is car insurance in Hawaii?” That way, you can find a policy with a reliable claims process, good customer service, and of course, an affordable rate.
To determine your car insurance rate, insurance companies consider several factors. These factors include your age, gender, the make and model of your vehicle, and your geographic location.
There are several elements regarding your location that also influence your rate. Once you understand how the place you live and other factors affect your insurance premium, you can better understand which company offers the best value.
The information below explains how providers calculate rates in Hawaii and it’s designed to help you find the best car insurance in Hawaii at the best price.
Average Cost of Car Insurance in Hawaii
Understanding the average cost of car insurance for drivers in Hawaii can help you decide if the quotes you’re receiving are reasonable and fair.
When comparing the average cost of insurance, Hawaii’s rates are lower than the other 48 states as well as the national average.
According to the National Association of Insurance Commissioners (NAIC), the average price of insurance has remained fairly steady since 2011.
|Average Cost of Car Insurance in Hawaii||$873.28|
|Average Cost of Car Insurance in California||$986.75|
|Average Cost of Car Insurance in Oregon||$904.83|
|Average Cost of Car Insurance in Washington||$968.80|
|Countrywide Average Cost of Car Insurance||$1009.38|
Aside from the vehicle you drive and your driving history, several other factors influence your insurance rate. Some of these include traffic conditions, crime rates, and accident rates where you live.
Traffic Conditions in Hawaii
Traffic density and accidents in your area are a factor that most insurance providers seriously consider when determining insurance rates.
It’s important to remember that state averages aren’t always accurate representations of the traffic conditions in larger cities and areas with higher population densities.
Cities in Hawaii such as Honolulu and Pearl City have higher traffic density and accident rates than smaller towns on the Big Island and areas throughout the smaller islands.
According to the National Association of Insurance Commissioners 2017 report of traffic density, Hawaii’s traffic density is 2,292,036, which is more than triple the national average of 724,348, in part because of the limited amount of land available for highways.
The NAIC calculates traffic density by comparing the number of miles traveled by registered vehicles in the state against the miles of highway throughout the state. Another traffic statistic is vehicle miles traveled per each registered vehicle in the state, which in this case totals 7,534, substantially lower than the national average of 12,010.
Fatal accidents in Hawaii occur at a rate of 0.07 per 1,000 vehicles, which is below the countrywide average of 0.13 per 1,000 vehicles.
While living in Hawaii is overall less expensive than many other states when it comes to car insurance, residents of smaller towns and rural areas save even more due to lower traffic density and accident rates, which are generally higher in larger cities.
Vehicle Theft Rates
According to the Insurance Information Institute, Hawaii is not ranked among the highest or lowest states for car theft. In Hawaii, an estimated 395.8 auto thefts occurred per 100,000 residents in 2016, according to the FBI. This rate is substantially higher than the national average of 236 auto thefts per 100,000 residents.
The National Insurance Crime Bureau’s Hot Wheels Report indicates that the Honda Civic and Honda Accord are the two most commonly stolen vehicles in Hawaii. In 2016 alone, 368 Honda Civics and 230 Honda Accords were stolen throughout the state.
Other common theft targets in Hawaii include Ford Pickups, the Toyota Tacoma, and the Toyota Camry. Since companies typically charge higher rates for frequently stolen vehicles, choosing to drive a vehicle with lower theft rates can help you reduce the cost of your insurance policy.
While population density doesn’t directly affect your insurance premiums, an area with a high population density has more vehicles, which leads to more theft and higher accident rates and, therefore, higher insurance premiums.
Throughout the U.S., the average population density is 95 persons per square mile. Hawaii’s population density is 221 persons per square mile. Of course, this number is likely to be higher in busy metropolitan areas and lower in rural communities.
Average disposable income is another factor with an indirect effect on insurance rates. Areas with more disposable income usually have more vehicles with high overall values and, therefore, higher insurance premiums.
According to the NAIC, Hawaii’s per capita disposable income per person in 2014 was $41,801, which is slightly higher than the national average of $40,859. Just like the factors mentioned above, this number is likely to be higher in larger cities and lower in rural areas.
Companies with the Best Car Insurance in Hawaii
Shopping for car insurance requires time spent researching and comparing different rates, quotes, coverage options, and reviews from at least three different insurance providers. This preliminary groundwork is the simplest way to make sure that you’re purchasing insurance from a company that can speedily process your claims while providing you with reasonable rates and good customer service. It’s also important to shop from reputable companies, such as:
Progressive Car Insurance
Progressive is a well-known insurance provider, famous for its quirky advertising campaigns. Its auto insurance offerings include a Name Your Price tool, which allows drivers to create policies that meet their needs at a price that meets their budget.
Allstate began in 1931 as a small auto insurance company. It has since expanded throughout the world to become one of the biggest players in the industry. It offers fantastic discounts to its policyholders, including a discount for safe drivers who use Allstate’s Drivewise® app.
Liberty Mutual Insurance
Liberty Mutual sells insurance to drivers and homeowners throughout North America, as well as Europe. It’s famous for its Accident Forgiveness Policy, and offers customers 24-hour roadside assistance.
While MetLife is best known for health insurance and employee benefits, it’s also a major player in the home and auto insurance industries. It prides itself on its wide range of policy options, as well as its convenient claims process.
Esurance operates as part of the Allstate family. It offers basic insurance options and provides customers with a fast and simple online claims process.
USAA is an insurance company that exclusively offers home and auto insurance policies to military members and their families at affordable rates.
Travelers is the oldest and second largest insurance company in North America, and it has expanded its insurance solutions worldwide. It offers a wide variety of insurance options and discounts for such things as bundling policies and paying in full.
What is Mandatory for Car Insurance in Hawaii?
Throughout most states, including Hawaii, there are minimum auto insurance requirements. According to the Hawaii Department of Commerce and Consumer Affairs, all vehicles and drivers must have personal injury protection and liability coverage.
Certain limits are set out by each state to inform drivers of required coverages. In Hawaii, these minimums are as follows:
- $10,000 per person (Personal Injury Protection Insurance)
- $20,000 for injuries per person (liability)
- $40,000 for total injuries per accident (liability)
- $10,000 for property damage (liability)
Drivers in Hawaii must carry proof of insurance in their vehicles, so if a driver fails to present proof of insurance, they may be subject to fines and traffic tickets.
How to Reduce the Cost of Your Car Insurance
Car insurance is necessary for drivers to protect themselves from costly medical and repair bills when accidents occur. Car insurance doesn’t have to be a big expense.
Once you’ve found the best car insurance in Hawaii, you can follow the advice of the Insurance Information Institute to lower your rate.
- Increase your deductible
- Reduce your coverage on older vehicles
- Bundle your insurance policies
- Reduce your mileage, if possible
Most insurance providers offer discounts that reward their customers for driving well, choosing to drive a car with plenty of safety features, or for bundling policies. Many even offer discounted rates to teen drivers who get good grades in school.
When shopping for insurance, make sure you have the following information on hand so you can get an accurate quote that includes all discounts for which you’re eligible:
- Vehicle information such as the make, model, year, VIN, usage habits, safety features, and anti-theft devices for all vehicles on your policy
- Personal information for all drivers in your household including the school grades of any teen drivers
- Household information including your complete address and parking information, an estimate of the assets you’d like coverage for, and your budget
What Can Increase the Cost of Your Car Insurance in Hawaii?
Just as there are ways to decrease the cost of your insurance, there are many items that can increase its cost. Although some factors, such as your age, gender, and driving experience, are out of your control, other elements can be avoided or their effects minimized.
Safety Rating and Potential to Cause Damage: The National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety conduct safety and crash tests on hundreds of vehicles each year.
They assign ratings to safety categories which are made available to the public. Choosing a vehicle that has received high safety ratings can reduce your insurance rate.
Driver Age: Both teen and senior drivers are usually associated with a higher risk, meaning they pay considerably higher rates than average. The successful completion of a defensive driving course can help lower rates for teens and seniors.
Driving Record: Drivers who violate traffic laws are subject to higher insurance rates. Depending on the incident and its severity, the consequences of violating these laws can range from a small fine to suspension of your license or even jail time. Regardless of the consequence, you’ll most likely see an increase in insurance rates after an infraction. Obeying laws and driving cautiously can help you ensure your rates remain affordable.
With the information above, you should have a clearer answer to the question of how much car insurance costs in Hawaii. You should also be able to determine which top insurance companies offer the best value for your needs and where to find the best car insurance in the state.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.