Hawaii No-Fault Car Insurance

Hawaii Is a No-Fault Auto Insurance State

If you own a motor vehicle that you plan to drive (or let others drive) in Hawaii, it must be insured by a policy that satisfies Hawaii law. (Haw. Rev. Stat. § 431:10C-104(b) (2023).)

Hawaii has adopted a "no-fault" auto insurance system. When you're injured in a Hawaii auto accident, you first bring a claim under your own personal injury protection (PIP) insurance. You can't go after the at-fault driver for compensation unless your injuries meet one of Hawaii's injury severity thresholds.

Hawaii PIP Coverage

Hawaii law requires at least $10,000 per person in basic PIP coverage for each car. For additional premiums, you can buy optional PIP insurance that pays benefits not covered by basic PIP. Because basic PIP benefits are limited, you might find that these optional PIP coverages are worth the cost.

What PIP covers (and doesn't cover). Basic PIP covers the medical expenses of people who've been hurt in an accident. You'll find a list of covered medical benefits in Haw. Rev. Stat. § 431:10C-103.5(a) (2023).

Hawaii's basic PIP doesn't cover lost wages, amounts paid for replacement services like household or lawn care, death benefits, or funeral expenses. If you're willing to pay the extra premiums, you can add these as optional PIP benefits. (See, for example, Haw. Rev. Stat. § 431:10C-302(a)(4) (2023) (wage loss benefits).)

PIP won't cover what the law calls "general damages" for injuries like pain and suffering, emotional distress, disfigurement, and more. The only way to get compensation for those injuries is to file an insurance claim or a lawsuit against the driver who caused the wreck. And the only way you can do that is if your injuries meet one of Hawaii's severity thresholds, as discussed below.

Finally, PIP doesn't take care of property damages, like the cost to repair or replace your damaged car. You have a couple of options here. First, you can bring a claim against the at-fault driver's auto insurance. (See Haw. Rev. Stat. § 431:10C-306(f) (2023).)

Second, if you have collision coverage, you can make a claim under your own policy. You'll have to pay your collision deductible, but this option might be faster than waiting to get paid by the responsible driver's insurer.

Who can collect PIP benefits? Your PIP insurance will pay benefits, regardless of who was at fault for the wreck, to anyone who was:

• driving the car with your permission
• a passenger in the car, or
• injured as a pedestrian, or while riding a bicycle, electric scooter, or moped.

Note that in Hawaii, PIP doesn't pay benefits to a person who's injured while driving or riding on a motorcycle or a motor scooter—unless that coverage is expressly provided by the policy.

(Haw. Rev. Stat. § 431:10C-304(1) (2023).)

How to Collect PIP Benefits

After an auto accident, you should notify your insurance company as quickly as possible. Many insurers have an online claims page or a mobile app you can use. It's a good idea to follow up with a written claim notice letter. Be sure to let your insurance company know that you're making a claim for PIP benefits. You might have to fill out a PIP application or claim form.

Typically, your health care provider will bill your PIP carrier directly, and will provide the necessary medical documentation with the bill. Once a claim for benefits is submitted, the insurance company has 30 days to:

• pay it (less any deductible, which is your responsibility)
• deny it (with written notice of the reasons why), or
• request additional documentation for the claim.

(See Haw. Rev. Stat. § 431:10C-304(13) (2023).)