A full coverage policy in Hawaii averages $1,066 per year or $86 per month. Compared to the U.S. national average of $1,424 per year, car insurance cost in Hawaii is cheaper on average. However, due to certain factors, the actual price for your policy may be more expensive.
Below, we explain how urban share, vehicle theft and other factors affect car insurance costs at a state level. We also explore personal factors like age, driving history and car model, and why car insurance costs in Hawaii are expensive for some drivers.
Table of Contents
- Why Hawaii Car Insurance Can Be Expensive
- Why Coverage Might Be Expensive for You
- How to Save on HI Car Insurance
- Frequently Asked Questions
Key Takeaways
Car insurance costs are cheaper in Hawaii than in other states. This is because non-driving rating factors that normally increase premiums, like your age and credit score, are disregarded.
However, factors particular to Hawaii — like the fact that it’s a no-fault state — can increase rates. Traffic congestion, urban population density and increasing vehicle theft rates can also increase premiums in the state.
Personal factors, including your location, chosen provider, driving record and car make and build, could be why car insurance rates are expensive for you. It is worth noting that these are controllable factors, and making adjustments could help you get lower rates.
Why Hawaii Car Insurance Rates Can Be High
Hawaii is one of the few states where a driver’s credit score does not affect insurance premiums. While rates are cheaper on average, actual costs can be expensive because of state-level factors like highway density, high population density and an elevated rate of vehicle thefts. It is also one of the 12 no-fault states, significantly increasing premiums.
Higher-than-Average Highway Density
Car insurance can be expensive in Hawaii partly due to the recorded traffic density of 11.2. States with the most congested highways record the highest numbers of accidents and crashes. The more vehicles driving near each other, the higher the likelihood of incidents. According to a MoneyGeek’s study, Hawaii ranks as the fifth-worst state for distracted driving.
High Population Density
Urban areas report higher rates of accidents, theft and vandalism than non-urban areas. As a result, auto insurance rates increase for urban residents.
In Hawaii, about 92% of residents live in the urban areas of Hawaii. Honolulu is a popular tourist destination, which increases the number of people and cars on the road. This, in turn, means more accidents are likely, and a higher number of claims will be filed.
High Rate of Vehicle Theft
MoneyGeek found that Hawaii's average vehicle theft rate is high at 371.1 cases per 100,000 inhabitants, making it the third-worst state for vehicle thefts.
Insurance companies assess risk by looking at crime reports and theft rates. Living in an area with a high volume of thefts automatically increases rates.
Hawaii Is a No-Fault State
Hawaii is a no-fault state. Regardless of who is at fault, drivers will turn to their respective insurance providers to pay for medical bills and vehicle damages. In addition to bodily injury and personal property damage, Hawaii requires no-fault personal injury protection (PIP) insurance with at least $10,000 in coverage.
Why Hawaii Car Insurance Might Be Expensive for You
Hawaii car insurance costs vary significantly depending on several factors. Uncontrollable factors affect prices at a state level. Where you live in the state, your chosen insurance company, driving record and car model are controllable factors that affect your individual quotes.
Where You Live
Hawaii may be cheaper than the national average, but depending on your city, you may pay higher rates than others. While the cost overall is cheaper than the national average, living in a densely populated city can increase premiums.
Insurance Company
Shopping around for the right insurance provider can help you find the most affordable option for you. MoneyGeek’s list of the cheapest car insurance in Hawaii can help you save money by comparing rates. We examined the best car insurance in Hawaii to ensure you’re getting the best service and a reasonable price. You can get personalized quotes using MoneyGeek’s calculator.
Compare Auto Insurance Rates
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
Age
Hawaii may be the only state where car insurance rates for younger drivers are nearly the same as older drivers. A driver’s age can make a huge difference in annual premiums in most states, doubling the price if you are a much younger or much older adult driver. Since Hawaii excludes non-driving rating factors like age, car insurance rates in the state aren’t affected by this factor.
Average Car Insurance Rates by Age in Hawaii
State | Average Driver (40-Year-Old) | 16-Year-Old | 25-Year-Old |
|---|---|---|---|
Hawaii | $1,066 | $995 | $993 |
Driving Record
Drivers with a clean record typically pay the lowest rates. Those with serious driving violations like a DUI or at-fault accidents could have increased premiums as they pose a higher risk. A driver with a speeding ticket alone pays $186 more annually than a driver with a clean record, while someone with a DUI in Hawaii pays $2,280 more per year.
Average Car Insurance Rates by Driving Record in Hawaii
State | No Violation | Speeding Ticket | Accident | DUI |
|---|---|---|---|---|
Nevada | $1,900 | $2,355 | $2,747 | $2,903 |
Credit Score
Hawaii is one of the few states with an anti-discrimination law that prevents insurance providers from rating policyholders based on non-driving factors. Like age, credit-based insurance scores do not affect your insurance premiums in Hawaii.
Car’s Make and Build
Older cars are cheaper to insure, while sports cars are more expensive because of parts that need to be replaced when damaged. For example, a Nissan GT-R costs around $3,096 to insure, triple the amount you’d pay if you own a Honda CR-V at $1,172 average per year.
You may want to look at car insurance costs for a particular car make and build before buying a new car. See how your car fares with our auto insurance calculator.
Car Insurance Calculator
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
High
Average
Low
Rates updated:
Sep 15, 2024
Why You Can Trust MoneyGeek
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
How to Save on Car Insurance in Hawaii
Hawaii may offer cheaper rates than other states, but it is still possible to save money on premiums. You may be able to control some factors that affect your premiums, like practicing safe driving habits or shopping for the cheapest option. Below are some suggestions on how you can save on car insurance.
Shop around for quotes.
Shopping around for at least four to five insurance quotes could give you a ballpark estimate of how much your car insurance should cost. It also shows you the cheapest options and the policies with coverage that best matches your needs.
Bundle your home & auto policies.
You can save by buying home and auto insurance from the same company. Many insurers offer discounts when you buy more than one product.
Seek out discounts.
Behavior and telematics-based discounts are common with insurance products. It’s wise to research typical insurance discounts offered by major insurers and ask what other discounts you can get based on personal factors.
Increase your deductible.
Auto insurance deductibles are the amount you pay out-of-pocket before your insurance coverage kicks in when you file a claim. A higher deductible can lower your premiums.
Consider pay-per-mile insurance.
If you don’t drive a lot, paying for full coverage insurance may not be your best choice. A pay-per-mile car insurance policy is one of the most popular ways to lower your premiums. Drivers who travel fewer than 12,000 miles annually may score cheaper rates.
Drop unnecessary coverage.
Comprehensive and collision coverage is usually only optimal for new and expensive cars. If your premiums are worth more than 10% of your vehicle’s cash value, you may want to drop unnecessary coverage to save money. In most cases, you no longer need comprehensive coverage if you have an older vehicle that is paid off.
Frequently Asked Questions
MoneyGeek answered the commonly asked questions about car insurance costs in Hawaii to give you an idea of what to expect before signing up for car insurance.
Is car insurance expensive in Hawaii?
Car insurance in Hawaii is typically cheaper than the national average. But several factors could cause your rates to go up.
Why is car insurance in Hawaii expensive?
Hawaii is a no-fault state, has elevated highway and population densities and has high numbers of vehicle thefts. These are some of the factors that can raise car insurance rates.
Why is Hawaii car insurance expensive for me?
While car insurance cost in Hawaii is generally cheaper than the national average, personal factors such as your ZIP code, insurance company, driving record and car make and build can increase the cost of your insurance. Age and credit score do not affect the cost of insurance in Hawaii.
What is the state minimum requirement in Hawaii?
Hawaii car insurance state minimum laws require drivers to have bodily injury and property damage coverage and personal injury protection.
How much is the average cost of Insurance in Hawaii?
The average cost of car insurance in Hawaii is $1,066 per year or $89 per month for full coverage. Hawaii drivers pay around $544 annually, or $45 monthly for state minimum coverage.
How much is the cheapest insurance in Hawaii?
GEICO offers the most affordable insurance in Hawaii with premiums as low as $646 annually, 125.5% lower than the most expensive policies from Progressive.
What is the best insurance carrier in Hawaii?
GEICO is the best insurance carrier in Hawaii, providing excellent customer service at an affordable rate. It also has strong financial stability ratings.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
sources
- Consumer Federation of America. "Important Insurance Anti-Discrimination Bill Becomes Law." Accessed April 18, 2022.
- Centers for Disease Control and Prevention. "Older Adult Drivers." Accessed April 18, 2022.
