Best Auto Insurance in Hawaii (2026)

Car insurance in Hawaii costs an average of $82 per month for full coverage — making it the 4th cheapest state in the nation. Hawaii’s unique combination of no-fault PIP, banned credit scoring, short driving distances, and island geography keeps premiums well below the mainland average.

But 2026 brings a significant change: Hawaii doubled its liability minimums from 20/40/10 to 40/80/20 under Act 138, effective January 1, 2026. This increase is expected to raise average premiums approximately 25%. Even with that increase, Hawaii remains one of the most affordable states for auto insurance.

Average Car Insurance Costs in Hawaii

Even Hawaii’s minimum coverage — which includes no-fault PIP — costs less than minimum coverage in most mainland states. The combination of banned credit scoring, short commutes, and reduced litigation from the no-fault system keeps costs down across the board.

The 5 Best Auto Insurance Companies in Hawaii

1. GEICO — Cheapest by a Wide Margin

GEICO offers the cheapest car insurance in Hawaii at $66/month ($787/year) for full coverage and just $23/month for minimum coverage. That’s roughly half the state average.

Why it wins: GEICO’s Hawaii rates are remarkably low — full coverage for less than most mainland drivers pay for minimum coverage. Their 15% military discount is particularly valuable in Hawaii, where the military community is large (Pearl Harbor, Schofield Barracks, Marine Corps Base Hawaii, Hickam). Fast online quoting makes getting a rate effortless.

When to look elsewhere: GEICO has no local agents in Hawaii. For navigating the state’s no-fault PIP claims process, a local carrier (Island Insurance, State Farm) provides better guidance — especially valuable for drivers new to Hawaii’s system.

2. Farmers — Best Value with Agent Access

Farmers offers the second-cheapest rates in Hawaii at approximately $72/month ($866/year) for full coverage, with local agent availability on the major islands.

Why it wins: Farmers combines near-GEICO pricing with local agent access on Oahu, Maui, and the Big Island. Their Signal telematics program rewards safe driving, and they offer the cheapest rates for drivers with a DUI at $244/month — significantly below competitors.

When to look elsewhere: If price is the only priority, GEICO is cheaper. For deep Hawaii-specific expertise, Island Insurance is the local specialist.

3. Island Insurance — Hawaii’s Hometown Carrier

Island Insurance is headquartered in Honolulu and operates exclusively in Hawaii. At approximately $81/month ($966/year), they’re not the cheapest — but their deep local expertise is unmatched.

Why it wins: Island Insurance was built for Hawaii. They understand the no-fault PIP system inside and out, have relationships with local repair shops and medical providers, and handle claims with the context of Hawaii’s unique driving environment. For drivers who want a carrier that truly knows the islands, Island Insurance is the choice.

When to look elsewhere: Island Insurance is Hawaii-only. If you might relocate to the mainland, you’d need to switch carriers. GEICO and State Farm offer seamless multi-state coverage.

4. State Farm — Best Multi-Island Agent Network

State Farm charges approximately $87/month ($1,043/year) in Hawaii — above the cheapest options but with the most extensive agent network across the islands.

Why it wins: State Farm agents on Oahu, Maui, and the Big Island provide face-to-face service for drivers who prefer a personal insurance relationship. Drive Safe & Save telematics rewards Hawaii’s typically safe, low-speed driving patterns. Strong multi-policy discounts benefit homeowners.

When to look elsewhere: GEICO and Farmers are significantly cheaper. If price matters most, those carriers save $200-$250/year.

5. USAA — Best for Military Families

USAA offers the lowest overall rates in Hawaii at approximately $60/month for eligible drivers, with industry-leading satisfaction. Given Hawaii’s massive military presence, USAA serves a large share of the state’s drivers.

Why it wins: USAA understands military life in Hawaii — PCS moves between islands or to the mainland, deployment-related coverage adjustments, and the unique needs of service members stationed far from the mainland. Their rates and claims handling are unmatched.

When to look elsewhere: Only if you don’t qualify for USAA membership.

Hawaii’s 2026 Insurance Changes

New Minimums: 40/80/20

Act 138 (SB2342) doubled Hawaii’s liability minimums effective January 1, 2026:

What this means for you:

• If your policy renewed after January 1, 2026, your minimums have already increased
• If you had the old 20/40/10 minimum, your premium likely increased
• The higher limits provide better protection — the old $10,000 property damage minimum was dangerously low given modern vehicle values
• The estimated average premium increase is approximately 25%

Why the Increase Was Needed

Hawaii’s old 20/40/10 minimums hadn’t been updated in decades and were among the lowest in the nation. A $10,000 property damage limit couldn’t cover even a moderate fender bender with modern vehicles. The new 40/80/20 limits bring Hawaii closer to mainland averages and provide meaningful protection.

Hawaii’s No-Fault System Explained

How No-Fault Works in Hawaii

After any accident, your own PIP coverage pays for your medical expenses and lost wages — regardless of who caused the crash:

• $10,000 PIP minimum covers medical bills, rehabilitation, and partial lost wages
• No need to determine fault before receiving medical treatment
• Applies immediately — faster coverage than at-fault states

The Lawsuit Threshold

You can only sue the at-fault driver for pain and suffering if your injuries meet Hawaii’s threshold:

• Medical expenses exceed a specific dollar amount
• Injuries involve permanent disfigurement, disability, or death

Below these thresholds, PIP covers your medical costs and the no-fault system handles the claim without litigation. This reduced litigation is one reason Hawaii’s rates are so low.

PIP Coverage Details

Hawaii’s $10,000 PIP minimum covers:

• Medical expenses — Doctor visits, hospital stays, surgery, rehabilitation
• Lost wages — A portion of income lost while recovering (typically 80%)
• Funeral expenses — In the event of a fatal accident
• Rehabilitation — Physical therapy and related services

You can purchase higher PIP limits for additional premium. Given Hawaii’s healthcare costs, consider increasing to $20,000-$50,000 if you don’t have strong health insurance.

Hawaii-Specific Insurance Factors

Credit Score Ban

Hawaii completely bans credit-based insurance pricing — one of only four states with a full ban (along with California, Massachusetts, and Michigan). This means:

• Your credit score has zero impact on your Hawaii car insurance rate
• All drivers are priced on driving record, vehicle, location, and demographics only
• This particularly benefits younger drivers and those rebuilding credit
• Every insurer — GEICO, State Farm, Farmers, Island Insurance — competes on the same non-credit factors

Island Geography

Hawaii’s island geography creates unique insurance dynamics:

• Short driving distances — Most commutes are under 15 miles
• Lower speed limits — Maximum 60 mph on most highways (vs. 70-85 mph on the mainland)
• Limited total miles driven — Island geography caps annual mileage naturally
• No interstate highway system — Fewer high-speed accidents
• All of these factors reduce accident frequency and severity, keeping premiums low

Honolulu Traffic

Despite short distances, Honolulu has some of the worst traffic congestion in the nation:

• H-1 Freeway is consistently among the most congested highways in the U.S.
• Stop-and-go traffic increases fender-bender frequency
• Honolulu rates are 10-15% above the state average
• Oahu drivers generally pay more than neighbor island drivers

Rates by Island

Oahu (Honolulu) is the most expensive due to traffic density. Neighbor islands benefit from lower traffic and fewer claims.

Natural Disaster Exposure

Hawaii faces unique natural hazards:

• Volcanic activity — Lava flows on the Big Island (Kilauea) have destroyed vehicles and homes. Comprehensive coverage pays for volcanic damage.
• Tsunamis — Coastal flooding risk. Comprehensive covers flood damage from tsunamis.
• Hurricanes — Less frequent than mainland Gulf states but still a risk. Hurricane Iniki (1992) caused massive damage on Kauai.
• Flash flooding — Heavy rainfall causes flash floods, particularly on windward sides of all islands
• Comprehensive coverage is essential in Hawaii despite low collision risk

Salt Air and Rust

Hawaii’s salt air environment accelerates vehicle corrosion:

• Undercarriage rust is a significant maintenance issue
• Salt corrosion affects brake lines, exhaust systems, and body panels
• Regular washing and rust prevention are more important in Hawaii than almost anywhere
• Vehicle depreciation from salt damage may affect actual cash value in claims

6 Ways to Lower Your Hawaii Car Insurance Rate

1. Start with GEICO

GEICO is the clear price leader in Hawaii at $66/month — roughly half the state average. Use GEICO as your benchmark, then compare Farmers, Island Insurance, and State Farm for your specific profile.

2. Leverage the Credit Score Ban

Since Hawaii bans credit scoring, your rate is determined entirely by driving record, vehicle, and location. This means a clean driving record has an outsized impact on your premium. Even one ticket or accident raises your rate more than it would in credit-scoring states.

3. Use Low-Mileage Discounts

Hawaii drivers naturally drive fewer miles than mainland drivers due to island geography. Report your actual mileage — if you drive under 7,500 miles/year (common in Hawaii), low-mileage discounts of 5-15% apply.

4. Get Comprehensive Coverage

Hawaii’s volcanic activity, tsunamis, flash flooding, and salt air exposure make comprehensive coverage essential. At Hawaii’s low rates, comprehensive adds only $100-$200/year and covers weather, volcanic damage, flooding, and theft.

5. Bundle with Homeowners/Renters Insurance

Hawaii’s high housing costs mean homeowners insurance premiums are elevated. Bundling home + auto saves 10-25% on combined premiums — meaningful when homeowners insurance is already expensive.

6. Consider Higher PIP Limits

Hawaii’s $10,000 PIP minimum may not cover a serious accident. Increasing PIP to $20,000-$50,000 costs relatively little and provides better medical coverage — especially important if you have a high-deductible health plan.

The Bottom Line

Hawaii is one of the cheapest and most unique states for car insurance. The credit score ban, no-fault PIP system, short driving distances, and island geography combine to keep rates well below the mainland average — even after the 2026 minimum increase to 40/80/20.

Start with GEICO (cheapest by far), compare with Farmers (agent access at near-GEICO prices), and consider Island Insurance if you want Hawaii’s hometown carrier. Military families should always check USAA first — with Pearl Harbor, Schofield Barracks, and multiple bases, USAA serves a huge share of Hawaii drivers.

The 2026 minimum increase adds cost but also adds protection. The old $10,000 property damage limit was inadequate for modern vehicles — the new $20,000 limit is a meaningful improvement. Hawaii remains one of the best states in the country for affordable auto insurance.