If you live in the beautiful state of Hawaii, you’re lucky for a lot of reasons. One of them is that car insurance rates tend to be low, with average yearly premiums falling $140 below the national average. This is especially good news considering that, by some accounts, Hawaii has the highest cost of living of any U.S. state.
You may be able to get your premium even lower with a bit of effort. Comparing companies, coverage, and discounts can help you save a lot on car insurance rates. We’ve done some of the legwork to help you get started.
How We Found the Best Hawaii Auto Insurance Companies
First, we found the top car insurance providers in Hawaii by market share. These companies insure the majority of Hawaii’s residents and are well-equipped to handle the specific needs of drivers in a tropical region. Then we assessed customer service, checking scores from consumer watchdog organizations like Consumer Reports and J.D. Power. We looked at financial ratings, too, from agencies like A.M. Best and S&P Global, to ensure that these companies could be relied upon to pay out in a pinch.
We also looked at the relative cost of premiums by comparing sample quotes from Hawaii’s top insurers. This gave us a basic idea of how prices stack up, but remember: Car insurance rates are personal. You’ll have to compare individualized quotes from a few different providers to find the best Hawaii car insurance company for you.
The 5 Best Auto Insurance Companies in Hawaii
One of the things we like best about State Farm is the number of discounts it offers, which can save you a considerable amount of money on your policy. It has all the usual discounts, like those for having multiple policies with the company and staying accident-free. But there were some harder-to-find options we appreciated, too: a discount based on your vehicle’s specific claim history and one for vehicles with factory-installed air bags or other “passive restraint” systems.
We were especially impressed by the company’s Drive Safe and Save program. You’ll earn a 5% discount just for signing up. Then, State Farm monitors your driving habits using either OnStar or a small beacon device that you keep in the car. If you’re a safe driver who obeys speed limits, slows for turns, and generally handles your car like a boss, you can save up to 50% off your premium, according to the company.
We weren’t thrilled with State Farm’s quote tool, which took us longer to fill out than the rest of the companies we tested. Aside from that, though, the majority of State Farm’s website is nicely put together. Even if you aren’t planning to insure with the company, we recommend checking out State Farm’s Simple Insights blog. There’s a wealth of information on vehicle safety, the latest car tech, maintenance, insurance basics, and more.
USAA only serves active and retired U.S. military members and their families. It’s a natural fit for Hawaii, considering that the state boasts one of the largest concentrations of U.S. military bases and compounds in the country, staffed by more than 36,000 active duty military personnel. Consumer Reports gives USAA an impressive reader score of 95, with “excellent” ratings for “simplicity of process” and “timely payment.” J.D. Power scores it five out of five for customer and claims satisfaction — you can’t get any better than that.
USAA offers all the standard supplemental coverage options, including accident forgiveness and rental reimbursement, as well as a handful of average discounts. But it’s also very attuned to the unique needs of military clientele. For example, you can earn a 15% discount if you store your vehicle on base, and you can pay your premiums based on the frequency of your military pay schedule.
This company only offers quotes to verified military members, so we were unable to compare prices. However, it’s widely regarded as one of the strongest providers in the industry and is known to offer competitive rates for military personnel. If you qualify for USAA coverage, you should definitely request a quote.
Like our other contenders, Allstate’s quote tool was fairly simple to use, though we weren’t happy with the fact that you cannot complete a quote without giving your phone number and email address — thus setting yourself up for pesky calls from agents before you’re ready to buy. We opted to get a range of pricing options, and you can further edit these quotes to match your own needs. Our policy came in at $542 for six months, which included $499 in discounts but was still our second-highest quote by a good margin.
Prices aside, Allstate scores well in multiple areas. Its Consumer Reports reader score is 88, just one point less than our top company, State Farm. It’s rated as “very good” for “simplicity of claims process” and “excellent” for “timely payment.” J.D. Power likes the company as well, giving it a three out of five in both claims and overall satisfaction — which puts it in the middle range of our five contenders. Allstate has reliable financials according to A.M. Best, Moody’s, and S&P Global, who all rate it in the “A” range.
Remember that pricing is highly individual, so Allstate could still end up being the cheapest company for you. Since it only takes a few minutes to get a fully customizable quote, we suggest checking prices at Allstate to see what kind of rates the company can offer you.
Progressive is known for having affordable car insurance rates, which makes it worth considering in any state. For Hawaii drivers, we really appreciate that Progressive makes it affordable to add collision and comprehensive insurance to your policy. Comprehensive coverage helps pay for repairs if your car is damaged by something other than an accident — including natural events like flooding and volcanic eruptions. This is incredibly important in a state where natural damages are frequent and costly.
Along with its robust coverage, we like Progressive’s generous list of discounts. This company is particularly friendly towards families with young drivers, as it offers a teen driver discount, a good student discount, and forgiveness programs for both large and small accidents.
To figure out whether Progressive is the best choice for you, request a car insurance quote on its website. The company’s quote tool makes it easy to toggle through coverage levels and add-ons — plus, it offers a “name your price” function that shows you exactly how much coverage you can afford within your budget.
Farmers’ website has very little in the way of educational information. There are no blogs, calculators, or other tools to enhance the customer experience. For example, we searched for the common term “no-fault insurance” and found nothing. But having said that, the site is clearly laid out and allows you to pay your bill online, report and manage claims, and leave feedback.
If you do have a claim, Farmer’s offers some nice perks. Its instant claims payment process allows you to get an estimate for repairs at one of its locations on Oahu, Kauai, or Maui and potentially receive a check on the spot. Someone can even meet you at your home or work, if that’s more convenient. The company also offers a guaranteed repair program in connection with body shops on Oahu, the Big Island, Kauai, and Maui that feature a lifetime warranty on repairs. These benefits make Farmers worth a look for car owners in Hawaii.
The Cheapest Car Insurance Companies In Hawaii
Average Annual Premium by Company
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Quadrant car insurance rate data as of 07/01/2019.
Average Annual Premium by Credit Tier
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|Average Across Credit Rating Tier||$662|
Quadrant car insurance rate data as of 07/01/2019.
The cheapest auto insurance companies in Hawaii are GEICO, State Farm, and USAA. The state of Hawaii has a lot to love, and car insurance rates are one of them, even if the cost of living isn’t. Given the small area of the islands, and fairly low population, rates are well below the national average. The islands also have very few highways making high-speed accidents, and thus a total loss, much less likely. All these reasons contribute to Hawaii having some of the lowest rates in the U.S.
Guide to Hawaii Auto Insurance
Hawaii minimum liability
Hawaii has fairly low minimum liability amounts — these are the numbers that the state says you must meet with your insurance policy in order to drive legally. In addition to basic liability coverages for injury and property, Hawaii includes $10,000 personal injury protection (PIP) in its list of must-haves because it’s a no-fault state (more on this below).
- $20,000 bodily injury coverage per person
- $40,000 bodily injury coverage per accident
- $10,000 property damage coverage per accident
- $10,000 basic personal injury protection (PIP)
Just because these are the minimum coverage requirements doesn’t mean you should stop there — Hawaii’s limits are relatively low compared to other states. If it works with your budget, we’d suggest opting for at least $50,000 bodily injury per person, $100,000 per accident, and $50,000 property damage, usually written as 50/100/50. These limits are more likely to cover damages and medical in the event of a serious accident.
Bump up the minimum
Bumping up coverage means you’ll be less likely to get caught short if you’re in an accident where there are costly injuries or damages — like if you hit an expensive luxury car. It’s better to be prepared for the worst and not need it than to be underinsured and have to pay legal fees, damages, and medical bills out of pocket.
Along with the state-mandated liability and PIP insurance, you’ll want to consider two additional kinds of coverage: collision, which covers damage to your own car in an accident, and comprehensive, which covers non-accident-related mishaps, like theft, fire, or the unlikely event of damage caused by volcanoes.
It’s also important to look at the kinds of supplemental coverage each company offers, like roadside emergency service or rental reimbursement. All of these factors play into your final decision on which company can give you the best car insurance in Hawaii.
A lot goes into determining how much you’ll pay for auto insurance. When we shopped around for quotes, we used the most popular car in Hawaii, a Toyota Tacoma, and asked for a quote for 50/100/50 insurance with collision and comprehensive. Your own prices will vary depending on your car, your driving record, and any number of other “risk factors.” That’s why it’s important to shop around. Take your own living situation into account and use our top picks as a starting point to find the best Hawaii car insurance company for your needs.
Hawaii Auto Insurance FAQ
Hawaii is one of a handful of states with “no-fault” insurance. This required coverage means that your insurer will pay the bills for your own injuries and your passengers’ injuries up to the limit of your basic personal injury protection (PIP) — regardless of who is at fault.
In return, you cannot sue or be sued unless there are serious injuries well beyond the scope of your PIP. No-fault deals only with injuries, not vehicles or property. This is why all Hawaii policies include $10,000 for PIP in addition to the 20/40/10 minimums required for liability insurance.
Uninsured/underinsured motorist coverage (UM/UIM) protects you from paying out of pocket if a driver hits you but doesn’t have enough insurance to cover the damages. It’s an incredibly important add-on in Hawaii, where just over 10% of drivers are on the road without insurance.
UM/UIM is the only thing that will keep you from paying property damages caused by an uninsured driver on your own dime. It’s also a relatively inexpensive add-on, so we recommend talking with your insurance agent about how much UM/UIM you can feasibly afford; it may be more than you think.
If you’re among the 10% of drivers in Hawaii without insurance, take a look at the Hawaii Joint Underwriting Plan. HJUP is a shared-risk, state-mandated plan that covers high-risk drivers who cannot get insurance through a private company. It’s more expensive than most private insurance but may be the only way for some high-risk drivers to get on the road legally.
As we’ve mentioned, shopping around is key — but you’ll also need to take into account the type of vehicle you’re driving and the amount of coverage you can afford. It’s best not to settle for minimum liability, since you never know the extent of the damages you’ll have to cover from an accident.
You’ll also want to consider factors like age and risk level when comparing insurers. For example: In order to avoid higher premiums for a teenager (teens are considered “high-risk”), you’ll want a company like State Farm or Progressive, which offer discounts for drivers under 18. For more information about discounts and coverage options, see our review of the best nationwide auto insurance companies.
The Best Hawaii Auto Insurance Companies: Summed Up
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We worked with Quadrant Information Services to provide data on auto insurance rates by company and credit score. Quadrant makes this information available using rate data insurers are required to file with state Departments of Insurance. Rates are based on sample profiles created by Reviews.com for comparative purposes.