Car insurance is necessary for all vehicle owners in Hawaii. And while car insurance coverage in the state is affordable, you should learn more about the factors that affect rates to get the cheapest coverage.

This guide explores the ins and outs of cheap car insurance in Hawaii, including average costs and the best coverage options based on location and driving history.

The Average Cost of Car Insurance in Hawaii

According to Bankrate, car insurance in Hawaii is more affordable than the national average, with drivers paying $1,678 annually for full coverage car insurance and $413 for minimum coverage. Comparing car insurance rates by state, Hawaii is the 5th cheapest.

Hawaii has strict non-discriminatory laws that make car insurance affordable. Insurers in the state cannot use factors such as age, credit history, marital status, or driving experience to determine your premiums.

Therefore, the difference between teen and adult drivers is often between companies, not between age groups. However, auto insurance rates are subject to factors such as driving record and location.

Factors Affecting Auto Insurance Costs in Hawaii

Several factors impact the cost of car insurance in Hawaii. They include:

1. Driving History: If you have a history of at-fault accidents, speeding tickets, or DUIs, expect higher premiums. On the other hand, maintaining a clean driving record will help you qualify for lower rates.
2. Location: Where you live within Hawaii can also affect your auto insurance rates. Urban areas may see higher rates due to increased traffic and a higher likelihood of accidents, while rural areas may offer more affordable coverage.
3. Vehicle Model or Type: Expensive or luxury cars tend to carry higher premiums due to the cost of repairs and the likelihood of theft. But cars with high safety ratings or features such as anti-theft devices may qualify for discounts.
4. Coverage Levels: Full coverage, which includes collision and comprehensive coverage, is more expensive than liability insurance.
5. Deductible Amount: Choosing a higher deductible (the amount you pay out-of-pocket in a claim) can lower your monthly premiums, but it also means you’ll pay more if you have to report an incident and file a claim.

Cheap Auto Insurance, Hawaii, for High-Risk Drivers

High-risk drivers are those with a history of speeding tickets, at-fault accidents, or DUIs. They often face higher insurance premiums.

However, there are still options for cheap auto insurance in Hawaii, even if you fall into this category. Always compare auto insurance quotes from multiple insurers to get the most affordable coverage. Here's a closer look at these high-risk drivers:

Speeding Tickets

A single speeding ticket increases your auto insurance rates. However, Hawaii drivers can find affordable coverage with Geico, which offers the lowest rates at $984 per year.

Car Accidents

If you’re involved in an at-fault accident, expect your rates to increase. USAA and Geico offer the most affordable rates for these drivers in Hawaii at $1,338 and $1,450 per year, respectively.

DUI

A DUI is the most serious of the three offenses for insurance rates. However, high-risk drivers should consider State Farm for the lowest annual rates at $1,701.

Source: Cheapest Car Insurance in Hawaii for 2025 (US News)

Cheapest Car Insurance, Hawaii, By Coverage Level

USAA offers the lowest minimum and full-coverage rates in the state, at $292 and $1,305 per year, respectively. However, USAA only provides auto insurance to military personnel and their family members. Those who are not eligible for USAA should consider GEICO, which offers the next-cheapest rates.

Source: Cheapest car insurance in Hawaii for 2025 (Bankrate)

Cheapest Car Insurance in Hawaii by City

Your location in Hawaii can affect how much you pay for insurance. Cities with larger populations and higher traffic volumes see higher premiums due to increased accident and claim risk. The cheapest rates for auto insurance in the state can be found in the following cities:

Source: Cheapest car insurance in Hawaii for 2025 (Bankrate)

Cheapest Auto Insurance, Hawaii, by Annual Mileage

If your insured vehicle does not cover many miles per year, insurance companies may offer you discounts. According to U.S. News, low mileage is 7,000 miles or less per year, while high mileage is 14,000 miles or more per year. Geico offers the lowest prices for both these drivers in Hawaii.

Source: Cheapest Car Insurance in Hawaii for 2025 (US News)

Hawaii Minimum Coverage Car Insurance Requirements

Hawaii law, through the Hawaii Department of Transportation, requires all drivers to carry a minimum level of auto insurance to drive legally. These minimum coverage limits are:

• Bodily Injury Liability: $20,000 per person/$40,000 per accident
• Property Damage Liability: $10,000 per accident
• Personal Injury Protection (PIP): $10,000

Liability insurance pays for the other person's medical expenses and property damage. These coverages may also help cover legal fees if you are sued. Because Hawaii is a no-fault state, all drivers must have PIP, which helps pay your and your passengers’ medical expenses if injured in an accident, no matter who caused it.

While these are the minimum requirements, they may not be enough to protect you in some situations. For instance, if you're in an accident with a new car or a luxury model, your property damage liability may not be enough. This is why many drivers get higher coverage limits.

Additional Auto Insurance Coverage in Hawaii

Beyond the minimum required coverage, drivers in Hawaii can add extra protection to their policy. These optional coverages include:

• Comprehensive Coverage: Covers damage to your car from non-collision events, such as fire, vandalism, animal attacks, or natural disasters. It can also cover costs if the car is stolen. Note that your lender or lessor may require this coverage. Also, it is best for people whose car is an asset.
• Collision Coverage: Pays for repairs to your car after a collision, no matter who is at fault. Your lender or lessor may require this.
• Uninsured/Underinsured Motorist Coverage: Protects you if you’re involved in an accident with an uninsured driver or a driver who does not have enough coverage. Insurance companies in Hawaii must offer this coverage, but you can decline it in writing.
• Medical Payments Coverage: Pays for medical expenses in an accident, regardless of fault.
• Roadside Assistance: Covers emergency on-site services, such as fuel delivery and towing.

Tips for Getting the Cheapest Hawaii Car Insurance

Here's how you can save money on auto insurance in Hawaii:

Lowering your car insurance premiums is possible through several strategies, including:

1. Compare Multiple Quotes: Use our online tool to compare car insurance quotes from different insurers.
2. Consider Increasing Your Deductible: Raising your deductible can lower your monthly premiums, but you’ll pay more out-of-pocket if you have a claim.
3. Take Advantage of Discounts: Many insurers offer discounts for good driving habits, bundling renters and auto policies, taking a safe driving course, or maintaining a clean driving record. You can access these discounts by asking your insurance agent about availability and qualifications.
4. Maintain a Clean Driving Record: Avoid moving violations and accidents to keep your rates low.
5. Choose a Car with Lower Insurance Costs: Some cars are cheaper to insure than others. Choose vehicles with strong safety ratings and lower repair costs.

FAQs

Why is Car Insurance so Cheap in Hawaii?

Hawaii has low population density, which contributes to affordable car insurance rates. The state also has non-discriminatory laws that prevent insurance companies from using factors such as age and credit score to determine car insurance rates.

What is the Best Car Insurance Company in Hawaii?

The best insurance company depends on factors such as driving history. However, according to Bankrate, USAA and GEICO offer the cheapest full and minimum coverage in Hawaii. You can find the most affordable rates by comparing quotes with our tool.

What Factors Impact Car Insurance Rates in Hawaii?

The main factors include your driving history, location, the type of car you drive, and the amount of coverage you select. Hawaii does not use age or driving experience to determine car insurance costs.

What Happens if You Don’t Have Car Insurance in Hawaii?

Driving without insurance in Hawaii is illegal and can result in fines and license suspension. Repeat offenders may even face jail time. You must always carry proof of auto insurance, either in physical form or an electronic version on your phone. Contact your provider for more information on where to find the electronic copy.