Hawaii residents have the privilege of calling a tropical paradise and one of the most popular tourist spots in the world home. But it's a privilege they pay for, as Hawaii is one of the most expensive states to live in the country, with higher than average costs for everything from food and gas to housing.
One thing residents of the Aloha state don't have to pay significantly more for, however, is insurance. Hawaii insurance rates for homes are actually cheaper than the national average at $776 a year (vs $804 nationwide) and $873 annually for autos (more than the national average of just under $800 a year but still much cheaper than many states).
When you're spending a lot for everything else, you want to save money wherever possible. Knowing the basics about insurance requirements and coverage can help you bring down your Hawaii insurance rates.
Hawaii Auto Insurance
Hawaii is a no-fault state for auto accidents, meaning no fault is assigned in an accident in most cases. Drivers are still required to maintain a minimum amount of insurance, including:
- Bodily Injury: $20,000/40,000
- Property Damage: $10,000
- Personal Injury Protection: $10,000
These are low limits, and in a serious accident this money can go quickly. Uninsured/underinsured coverage is also recommended, as is collision and comprehensive insurance, which covers repair and replacement costs for your own vehicle.
Hawaii Homeowners Insurance
Protecting your real estate investment is essential. Living on an island increases potential for flooding and hurricanes, so it's important that your Hawaii insurance rates include both flood and hurricane coverage in additional to your regular coverage. Many people don't realize that while their policy may cover wind, hail, and water damage, this excludes damage caused by hurricanes and floods.
You should also note other exclusions in your policy. For example, your personal belongings are most likely not covered, as the average policy covers your structure and not your furnishings. This means you will have to get separate contents insurance.
Many people rent in Hawaii, so renters insurance is essential. Typically under $200 a year, this will cover your personal belongings from things like fire, theft, and other perils. It also includes liability in case someone is injured in your home and sues you.
Saving on Hawaii Insurance Rates
There are many ways you can save money on your Hawaii insurance rates, including:
- Secure your home. Burglar alarms, deadbolt locks, and motion lights can all reduce your insurance by around 15% or more.
- Look for discounts. Insuring more than one vehicle, driving an energy efficient car, and putting a spouse on your policy can all save you money on your insurance. Ask for discounts you may be eligible for.
- Shop around. Not all insurance companies will charge you the same rates. You can save on your Hawaii insurance rates by shopping around and comparing prices through a site like localinsurance.com. It's free, easy, and takes the hard work out of finding insurance.
