Hawaii Auto Insurance: 40/80/20 Minimums

Hawaii doubled every liability minimum at once on 1 January 2026, from 20/40/10 to 40/80/20 — the first change in about 25 years. PIP did not move, and nor did motorcycles.

Quick Answer: Hawaii Minimum Auto Insurance

Hawaii is one of 12 no-fault states, requiring both liability insurance and Personal Injury Protection (PIP). The state mandates 40/80/20 liability coverage plus $10,000 PIP.

Coverage Type	Minimum Required
Bodily Injury (per person)	$40,000
Bodily Injury (per accident)	$80,000
Property Damage	$20,000
Personal Injury Protection (PIP)	$10,000

Hawaii's no-fault system means your own PIP coverage pays for your medical expenses regardless of who caused the accident.

How Hawaii's No-Fault System Works

Unlike traditional tort states where the at-fault driver's insurance pays for damages, Hawaii's no-fault system operates differently.

PIP Coverage Explained

Personal Injury Protection (PIP) in Hawaii covers:

Medical expenses - Hospital bills, doctor visits, surgery
Lost wages - Up to 80% of lost income
Essential services - Household tasks you can't perform
Funeral expenses - If death results from accident

When PIP Applies

Your PIP coverage pays for your injuries:

Regardless of who caused the accident
For you, passengers in your vehicle, and pedestrians
Up to your policy limit ($10,000 minimum)

Threshold for Lawsuits

Hawaii allows injury lawsuits against at-fault drivers only when:

Medical expenses exceed $5,000, OR
Injuries involve significant permanent loss, OR
Death or serious disfigurement occurs

For minor accidents below these thresholds, each driver's PIP covers their own expenses.

Hawaii's Liability Requirements

Beyond PIP, Hawaii requires standard liability coverage:

Bodily Injury Liability (40/80)

Covers injuries you cause to others when you're at fault:

$40,000 per person maximum
$80,000 per accident total for all injured parties

Every liability figure doubled on 1 January 2026. Act 138 (S.B. 2342) amended HRS § 431:10C-301, taking the minimum from 20/40/10 to 40/80/20 for policies issued or renewed on or after that date. It was the first change in roughly 25 years, and one of the few increases anywhere that doubled all three numbers at once rather than adjusting one.

This applies when:

Damages exceed the victim's PIP coverage
The accident meets lawsuit thresholds
Property damage occurs (separate limit applies)

Property Damage Liability ($20,000)

Covers damage you cause to others' property:

Other vehicles
Buildings, fences, mailboxes
Guardrails and road signs
Personal property inside other vehicles

Important: Hawaii's property damage limit doubled to $20,000 in 2026, but that is still below the cost of replacing a modern vehicle shipped to the islands.

Why Hawaii's Minimums May Fall Short

Hawaii's insurance minimums were last significantly updated years ago and don't reflect modern costs:

Coverage Gaps Illustrated

Real-World Scenario	Typical Cost	Hawaii Minimum
New car replacement	$35,000 - $50,000	$20,000 property damage
Emergency surgery	$50,000 - $150,000	$40,000 bodily injury
Multi-injury accident	$200,000+	$80,000 total
Extended hospital stay	$100,000+	$10,000 PIP

Recommended Coverage Levels

Coverage Type	State Minimum	Recommended
Bodily Injury	$40,000/$80,000	$100,000/$300,000
Property Damage	$20,000	$100,000
PIP	$10,000	$25,000 - $50,000
UM/UIM	Not required	Match liability limits

Uninsured Motorist Coverage in Hawaii

Hawaii does not mandate Uninsured/Underinsured Motorist (UM/UIM) coverage, but insurers must offer it.

Hawaii's Uninsured Driver Rate

Hawaii has one of the lowest uninsured driver rates in the nation at approximately 6%. Contributing factors include:

Island geography limits escape routes
Strict enforcement at vehicle registration
Higher compliance culture

Why UM/UIM Still Matters

Even with low uninsured rates:

Hit-and-run accidents still occur
Tourists may have inadequate coverage
Many drivers carry only state minimums
Underinsured drivers are common

Penalties for Driving Without Insurance in Hawaii

Hawaii enforces insurance requirements through its Motor Vehicle Safety Responsibility Act.

First Offense Penalties

Penalty	Amount/Duration
Fine	$500 minimum
License suspension	3 months
Registration revocation	Until compliance
Vehicle impoundment	Up to 30 days
Proof of insurance	Required for reinstatement

Repeat Offense Penalties

Penalty	Amount/Duration
Fine	$1,500+
License suspension	1 year
Vehicle impoundment	Extended
Community service	Possible
Misdemeanor charges	Possible

Additional Consequences

At-fault accident while uninsured: Personal liability for all damages
Vehicle release fees: Must pay storage and impound costs
SR-26 filing: Proof of future insurance compliance required
Increased premiums: History of lapse affects rates for years

Hawaii's Insurance Verification Process

Hawaii verifies insurance during several processes:

Mandatory Safety Inspection

Every registered vehicle must pass annual safety inspection. As part of this process:

Inspectors verify proof of insurance
No-insurance violations are reported to the state
Vehicles without insurance fail inspection

Registration and Renewal

Initial registration requires proof of insurance
Annual renewal requires current insurance
The state cross-references insurer databases

Traffic Stops

Officers verify insurance during stops. Hawaii accepts:

Physical insurance cards
Electronic proof (smartphone apps)
Insurer-provided digital cards

Special Considerations for Hawaii Drivers

Inter-Island Travel

If you transport your vehicle between islands:

Your Hawaii insurance remains valid
Ferry or cargo ship damage may not be covered
Rental vehicles on other islands have separate requirements

Military Personnel

Active duty military stationed in Hawaii:

Must meet Hawaii insurance requirements
Out-of-state policies may qualify if they meet minimums
Some insurers offer military discounts

Rental Vehicles

Rental car insurance in Hawaii:

Rental companies offer collision damage waivers (CDW)
Your personal policy may extend to rentals
Credit cards may provide secondary coverage
Liability is still your responsibility

Motorcycles and Mopeds

Hawaii requires the same liability limits for motorcycles:

40/80/20 liability coverage required
PIP is not required for motorcycles
Mopeds under 50cc have different rules

Cost of Auto Insurance in Hawaii

Hawaii's insurance costs are among the highest in the nation due to:

Island geography (limited competition)
High vehicle repair costs (shipping parts)
Tourism-related congestion
Higher theft rates in some areas

Average Annual Premiums

Coverage Level	Oahu	Neighbor Islands
State minimum	$500 - $800	$400 - $700
Standard coverage	$1,000 - $1,600	$900 - $1,400
Full coverage	$1,800 - $2,800	$1,500 - $2,400

Factors Affecting Rates

Location: Honolulu rates highest due to traffic density
Age: Young drivers pay significantly more
Vehicle type: Luxury and sports cars cost more
Credit history: Hawaii allows credit-based pricing
Driving record: Accidents and violations increase rates
Commute distance: More miles = higher risk

Frequently Asked Questions

Why does Hawaii require PIP insurance?

Hawaii adopted no-fault insurance in 1974 to reduce lawsuits and ensure accident victims receive quick medical payment without proving fault. PIP provides immediate coverage for your own injuries.

Can I sue after an accident in Hawaii?

You can sue for serious injuries or when medical expenses exceed $5,000. For minor accidents below this threshold, each driver's PIP covers their own expenses.

Do I need collision coverage in Hawaii?

Collision is not required by law but is highly recommended due to Hawaii's high repair costs. If you're financing your vehicle, your lender will require it.

What's the difference between PIP and medical payments coverage?

PIP covers medical expenses, lost wages, and essential services. Medical payments coverage only covers medical costs. In Hawaii, PIP is mandatory; medical payments is optional.

Does my Hawaii insurance cover me in other states?

Yes. Your Hawaii policy provides coverage when driving in other states, and most policies automatically adjust to meet that state's minimum requirements if they're higher.

Can I drive in Hawaii with an out-of-state license?

Yes, temporarily. If you become a Hawaii resident, you must obtain a Hawaii license and register/insure your vehicle within 30 days.

Key Takeaways

Hawaii requires 40/80/20 liability plus $10,000 PIP, for policies issued or renewed on or after 1 January 2026 (was 20/40/10)
Hawaii is a no-fault state - your PIP pays for your injuries
PIP stayed at $10,000 while every liability figure doubled
Motorcycles were left at 20/40/10 — they sit under a separate statute the increase did not touch
Hawaii has one of the lowest uninsured driver rates (~6%)
Annual safety inspection verifies insurance compliance
Insurance costs are higher than mainland average
Lawsuits allowed only for injuries exceeding $5,000 in medical costs

Important Disclaimer

This guide provides general information about Hawaii auto insurance requirements based on publicly available sources. This is not legal or insurance advice. Insurance requirements can change, and individual circumstances vary.

Always verify current requirements with the Hawaii Department of Commerce and Consumer Affairs (Insurance Division) and consult with a licensed insurance professional for advice specific to your situation.

Last verified: January 2026

Sources: Hawaii Revised Statutes Chapter 431, Hawaii Department of Commerce and Consumer Affairs, Insurance Information Institute

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