Why Is Car Insurance So Expensive in Hawaii?

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.

• Why Hawaii Car Insurance Can Be Expensive
• Why Coverage Might Be Expensive for You
• How to Save on HI Car Insurance
• Frequently Asked Questions

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.

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.

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.

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. 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.