Hawaii auto questions are mostly about the Hawaii Motor Vehicle Insurance Law (HRS Article 431:10C), not about the policy form. Hawaii is a no-fault state: personal injury protection (PIP) pays your own injury costs whatever the fault, and lawsuits for pain and suffering are limited by a tort threshold. The general structure of the personal auto policy (liability, medical payments, uninsured motorists, physical damage, duties after a loss) is covered in the national guide. These notes cover what Hawaii adds.

Compulsory insurance

• A motor vehicle may be driven on a public road only if it is insured at all times, unless the owner is a qualified self-insurer (HRS 431:10C-104, 10C-105). The policy must stay in force for the whole registration period.
• Federal government vehicles and antique vehicles are exempt. Motorcycles and motor scooters are not "motor vehicles" under Article 10C; they have their own article (10G, see the Other Casualty guide).
• The insurance ID card must be in the vehicle or on a phone and shown to police on demand (HRS 431:10C-107). It lists the policy number, the insured and insurer, and the effective and expiration dates.
• An owner whose insurance lapses must immediately surrender the registration and plates (HRS 431:10C-114).

Required coverages and minimum limits

Every motor vehicle policy must include (HRS 431:10C-301):

The 40/80/20 limits replaced the old 20/40/10 limits under Act 138 (2024). The commissioner's required coverage exhibit dated January 1, 2026 lists $40,000/$80,000 and $20,000 as the basic limits (HAR 16-23-11, Exhibit 1). Liability coverage applies to the owner and to anyone driving with a reasonable belief that they may drive the car. It does not cover property owned by, carried by, or in the care of the insured.

Underinsured motorist (UIM) coverage must be offered. The offer must be conspicuous, show the premium next to it, and allow a signed rejection. Insurers must also offer UM/UIM limits up to the policy's BI limits and a stacking option. Otherwise, stacking is prohibited (HRS 431:10C-301(c)–(d)). Once UM/UIM is rejected in writing, no new offer is required at renewal. Hawaii defines an underinsured vehicle as one whose BI limits are less than the damages owed by law.

Personal injury protection (no-fault)

• PIP pays reasonable treatment and expenses from an auto accident without regard to fault, up to $10,000 per person per accident, no matter how many vehicles or policies are involved (HRS 431:10C-103, 10C-103.5).
• Who collects from which policy (HRS 431:10C-305):
  • An occupant collects from the policy on the vehicle they were in.
  • A pedestrian or bicyclist collects from the policy on the vehicle that hit them.
  • Nobody may collect PIP from more than one insurer for the same accident.
• For an on-the-job injury, PIP is secondary to workers' compensation.
• Not eligible: a driver whose criminal conduct caused the injury, occupants of a vehicle other than the insured vehicle, and motorcycle riders unless the policy expressly covers them.
• Payment timing (HRS 431:10C-304): benefits are due within 30 days of proof and demand. A denial must be sent in writing with reasons within 30 days. Overdue benefits earn interest of 1.5% a month. The insurer pays the claimant's attorney fees on top of benefits.
• Cost controls (HRS 431:10C-103.6): charges follow the workers' compensation fee schedule; chiropractic, naturopathic and acupuncture care combined is capped at 30 visits.

Tort threshold

Hawaii limits lawsuits for bodily injury but keeps them for serious cases (HRS 431:10C-306). An injured person may sue in tort for:

• death;
• significant permanent loss of use of a body part or function;
• permanent and serious disfigurement causing mental or emotional suffering; or
• injuries where PIP benefits incurred reach $5,000 or more.

The tort limits do not protect a driver who acts intentionally, commits a crime, or drives impaired. Tort liability for property damage is not limited at all. When a tort recovery duplicates PIP benefits, the PIP insurer is reimbursed 50% of what it paid (HRS 431:10C-307).

When fault decides a case, Hawaii uses modified comparative negligence. A plaintiff whose negligence is not greater than the defendant's recovers damages reduced by their own share; a plaintiff more at fault than the defendant recovers nothing (HRS 663-31).

Optional coverages insurers must offer

Under HRS 431:10C-302:

• Optional wage loss: from $500 a month / $3,000 per accident up to $2,000 a month / $12,000.
• Death benefits: $25,000 in steps up to $100,000.
• Funeral expenses: $2,000.
• PIP deductibles: $100, $300, $500 and $1,000.
• Collision and comprehensive deductibles: $50 through $2,000.
• Managed-care PIP through an HMO or PPO. It must be voluntary: requiring it as a condition of coverage is an unfair practice (HRS 431:10C-302.5).

The insurer must disclose every required and optional coverage and its cost. The named insured's choices bind all other insureds on the policy.

Rating rules

• Rates may not be based on age, sex, length of driving experience, credit bureau rating, marital status, race, creed, ethnic extraction or physical handicap (HRS 431:10C-207).
• No premium increase or lost discount for an accident in which the insured was not at fault (HRS 431:10C-208).
• A surcharge for having been uninsured requires a conviction within the past three years, and every surcharge or credit must be explained in writing (HRS 431:10C-202).

Cancellation, nonrenewal and the residual market

• After 60 days, a policy may be cancelled only for reasons such as nonpayment or the principal operator's license suspension or revocation (HRS 431:10C-111). It may never be cancelled or nonrenewed because of the insured's age, sex, residence and similar factors, and the insurer carries the burden of proof on that point.
• Notice periods (HRS 431:10C-112): 30 days for most cancellations and nonrenewals, 20 days for nonpayment, sent with a USPS-validated certificate of mailing.
• Nonrenewals and conditional renewals are capped at 2% of policies in each rating territory each year (HRS 431:10C-111.5).
• An insured may appeal a cancellation to the commissioner within 10 days (HAR 16-23-16).
• After cancellation, the insured returns the ID card within 30 days. The insurer refunds unearned premium within 15 days of getting it back.
• An applicant who is rejected must immediately be offered placement in the Hawaii Joint Underwriting Plan (HRS 431:10C-110). All authorized auto insurers must belong to the plan. Licensed public assistance drivers pay no premium for the mandatory minimum coverages (HRS 431:10C-410).

Penalties for driving uninsured

• First conviction: a $500 fine (or 75–100 hours of community service), plus either a three-month license suspension or a nonrefundable six-month policy (HRS 431:10C-117).
• Second offense within five years: at least $2,000.
• Producers or insurers who knowingly violate the article face civil penalties of $3,000 to $10,000 per violation.

Rideshare and car sharing

• Transportation network company (TNC) drivers (HRS 431:10C-703):
  • Logged on and waiting for a ride: primary limits of 50/100/25 plus PIP.
  • During a prearranged ride: at least $1,000,000 per accident.
  • A personal policy need not cover during a ride unless it expressly does.
• Peer-to-peer car sharing: the program must provide at least the state minimum limits plus PIP during the sharing period, and the owner's personal policy may exclude that period (HRS 431:10C-802, 10C-803).

Common exam traps

• The current minimums are 40/80/20, not 20/40/10. PIP is $10,000.
• UM is included unless rejected in writing. UIM and stacking must be offered.
• The tort threshold is $5,000 in PIP benefits (or a serious injury). Property damage suits are never restricted.
• PIP comes from the vehicle occupied; pedestrians collect from the vehicle that hit them.
• Hawaii bans age, sex and credit as rating factors.
• A rejected applicant is offered the Joint Underwriting Plan right away.