UPDATED: Mar 13, 2020
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Are you looking for auto insurance in Honolulu? At AutoInsuranceEZ.com, you’ll find the cheapest insurance rates near you. To receive free car insurance quotes from the top rated providers today, just put your zip code into the quote box on this page.
Honolulu is internationally famous for its fabulous weather and popular tourism industry. But did you know it is also an important shipping hub? Its strategic location in the Pacific Ocean connects the west coast of North America to Australia and Asian countries. The city is also important for US naval defense.
- Fun fact: Did you know that Honolulu is #1 on the list of “Top 101 cities with largest percentage of females working in industry: Jewelry, luggage, and leather goods stores (population 50,000+)”? Learn more about Honolulu, HI
Auto Insurance Coverage Requirements in Hawaii
Want to drive legally in Hawaii? Well, you’ll need to purchase at least this much insurance coverage:
| Coverage | Requirements | Most Common |
| Bodily Injury Liability | 20,000/40,000 | 100,000/300,000 |
| Property Damage Liability | 10,000 | 50,000 |
| Uninsured Motorist Bodily Injury | Not required | 20,000/40,000 |
| Medical Payments | Not required | 2,000 |
| Collision | Not required | 250 deductible |
| Comprehensive | Not required | 1,000 deductible |
Think Liability coverage is all you need? Well, just because it’s the state mandatory minimum doesn’t mean that you don’t need more coverage. Liability only pays out claims for very specific circumstances (accidents caused by you). If anything else happens to your car, you’re basically on your own.
The average Hawaii driver could be paying around $117 for their car insurance policy each month. However, Honolulu drivers have the opportunity to get insured for as low as $68/mo*. How is this possible? Keep reading, and you’ll find out.
Liberty Mutual is clearly more expensive than the two other major providers, Allstate and State Farm. The reason why is hard to say. But before you decide on a provider, do a little digging. Just because a company offers a low rate doesn’t mean their customer service or their claims process is satisfactory.
Auto insurance carriers evaluate several elements when establishing insurance quotes, including driving experience, credit score/rating, miles driven each year, the age of your vehicle, and current insurance coverage/limits. Additionally, premiums differ from carrier to carrier. To find out whether you’re still getting the cheapest rate, compare cheap Hawaii auto insurance quotes online. Enter your zip code below to view companies that have cheap auto insurance rates.
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Major Car Insurance Factors in Honolulu
There are lots of ways in which your car insurance rate may be estimated. But not all of it is out of your control; there are steps you can take so that you can control which discounts you are eligible to receive. Listed below are a few of these factors in greater detail:
Your Zip Code
The cheapest car insurance is usually found in cities with a lower population density. Because there are fewer automobiles on the road, there are fewer opportunities for you to get into a major car accident with another driver. The population of Honolulu is 374,701 and the median household income is $63,772.
Automotive Accidents
A part of your rate is calculated based on how many serious accidents happen in your area on a regular basis. In the chart above, you can see the most recent statistical data for Honolulu. If you’re worried that high accident rates in your area are raising your premium, talk to your agent about possible safe driver discounts which could save you money.
Auto Thefts in Honolulu
In Honolulu, NICB research shows that drivers may end up spending over $300 more each year on their car insurance just because of auto theft. In order to make it less of a problem for you, think about installing a passive anti-theft system on your car. Your auto insurance company may reward you with lower rates! Or, they could lower your rate enough so that you can afford to add Comprehensive insurance coverage to your policy. It’s the only type of coverage which pays out claims on auto theft.
Your Credit Score
Hawaii is one of three states in the country where auto insurance providers are legally prohibited from basing your monthly premium on your credit score. For people with poor credit, this means that you’ll be paying less than you would if you lived in most other states. However, this does make monthly premiums artificially higher for everyone with a better credit score.
Your Age
For better or for worse, drivers under the age of 25 have some of the highest insurance rates around. Data shows that younger people with less driving experience are more likely to get into accidents, so companies offset the financial risk with higher premiums. Ask your provider about Drivers Ed and Good Student discounts to help offset these higher rates.
Your Driving Record
If you have one or more major driving violations on your record, it may become difficult and expensive to find automotive insurance. Even a few minor infractions can send your monthly rates through the roof. Try asking your provider about any “accident forgiveness” discounts they may offer to help save yourself some money.
Your Vehicle
In truth, insuring a compact sedan or a luxury sports car with Liability coverage may only cost a few dollars’ difference – buy why would you insure a luxury vehicle with a bare bones insurance policy? The cost for luxury insurance comes from the added coverages – Comprehensive, Roadside Assistance, and more – that are pretty much mandatory if you want to protect your investment.
Minor Car Insurance Factors in Honolulu
Before you make any major decisions about your insurance policy, be sure to consider these minor factors as well:
Your Marital Status
If you’re married, then you’re in the perfect position to take advantage of bundling discounts (if you aren’t already doing so). You and your spouse will be charged significantly less if you bundle your policies under the same provider.
Your Gender
Remember the old days when companies charged drastically different rates based on gender? Well, thankfully, many providers are starting to forget. Most insurance companies these days charge about the same rate, regardless of gender.
Your Driving Distance to Work
The typical worker can expect to spend 16-29 minutes driving to work each day. Of these, just over 50% drive their own car in to work. Around 6-16% commute to work by carpooling, while others rely on additional forms of public transportation, such as busses.
You can reduce your premiums by a few dollars a month by limiting your yearly mileage. You should also do what you can to make sure your vehicle is for personal use only. Business vehicles tend to cost 11-12% more in premiums.
Your Coverage and Deductibles
Need a way to lower your monthly premiums, or to add coverage without raising your rates? Then raise your deductible. Doing so will give you options as far as coverage and monthly payments are concerned. Just make sure you have enough to cover your deductible should the worst happen.
Your Education
Many drivers in Honolulu have obtained at least a high school diploma or some similar equivalent. Additionally, a good number of motorists also have a bachelor’s degree, which is likely to save them lots of money on their car insurance each year. This is because higher levels of education net lower automotive insurance rates, even more so than having a high income or a prestigious job.
There are several institutions of higher learning in the Honolulu area. The University of Hawaii at Manoa educates tens of thousands of students annually, offering degrees in everything from science and agriculture to astronomy and astrophysics. There are also private institutions such as the Hawaii Pacific University or the Chaminade University of Honolulu.
Determining your individual financial risk can be very difficult or impossible for the typical insurance shopper. Insurance companies have an advantage over consumers due to their statistics and experiential knowledge. Learn what insurance companies don’t want you to know.
How We Conducted the Analysis
*We calculated our average rate based on the following metrics: a married, 34 year old male with good credit, a 12-month history of maintaining auto insurance, a clean driving record, who owns his own home. Miles driven annually were based on the national average. The average rate was also calculated based on a financed 2015 Honda Accord with a pre-installed anti-theft device.
Sources:
Hawaii Department of Commerce and Consumer Affairs – Insurance
Hawaii Department of Commerce and Consumer Affairs – Financial Institutions
Department of Highway Safety and Motor Vehicles
These Companies Offer Lowest Rates on Auto Insurance in Honolulu, Hawaii – Act Now