Hawai'i’s Personal Injury Protection (PIP) Benefits Explained

Understanding Hawai'i's No-Fault Insurance

Hawai'i law mandates that all drivers carry Personal Injury Protection (PIP) coverage. If you drive without proper insurance identification in your car, you'll face tickets and fines under state law [1]. Under Hawaii Revised Statutes Section 431:10C-103.5, every motor vehicle insurance policy must include at least $10,000 per person in PIP benefits [2]. Hawai'i is a no-fault state, which means your insurance company pays your medical expenses after any car accident, regardless of who caused the crash [1].

This system can be beneficial because it allows injured people to receive medical care quickly, rather than waiting weeks or months for insurance companies to determine which driver is responsible for payment.

What Your PIP Dollars Buy

Hawai'i's basic PIP coverage pays for accident-related medical care up to your policy limit.

Covered services under PIP include [2]:

• Immediate Medical Care
  • Emergency room treatment
  • Hospital stays
  • Doctor visits and specialist consultations
  • X-ray and diagnostic services
• Recovery Services
  • Physical therapy prescribed by a medical doctor
  • Occupational therapy
  • Chiropractic care and naturopathic medicine
  • Rehabilitation services
• Equipment and Transportation
  • Medical equipment and supplies
  • Prosthetic services
  • Ambulance transportation [2]

Real-World Example

Consider a Honolulu driver who gets injured in a collision on H-1 freeway during morning rush hour. Their PIP coverage would pay for the ambulance ride to the medical center or hospital ($1,200), emergency room treatment for a shoulder injury ($4,500), follow-up visits with an orthopedic specialist ($800), and several weeks of physical therapy sessions ($2,100). The total medical costs of $8,600 would be covered under their $10,000 PIP policy, with $1,400 remaining for any additional treatment needed.

Note: Dollar amounts shown are examples only. Actual medical costs may vary significantly based on specific circumstances, providers, and treatments required.

The Coverage Gap

That $10,000 minimum won't cover everything. Basic PIP excludes several major expenses:

• Paychecks lost while recovering from injuries (unless you purchase optional wage loss coverage).
• Funeral costs if the worst happens (unless you purchase optional funeral expense coverage).

Hawai'i allows you to buy additional PIP coverage. Optional benefits include wage replacement, death benefits up to $100,000, and funeral expenses of $2,000 [1].

How Claims Actually Work

If you were rear-ended at a red light, you would call your own insurance company, not the other driver's. Your PIP coverage pays your medical bills immediately, even before your health insurance processes anything [1].

Your passengers get the same protection under your policy limits. If you carry $10,000 in PIP coverage, each injured person can claim up to that amount for their medical expenses.

Is the Minimum Coverage Enough?

A single emergency room visit can cost $3,000 to $8,000. Add follow-up doctor visits, prescription medications, and physical therapy, and you could exhaust your PIP coverage quickly.

Consider increasing your PIP coverage limit if you:

• Support a family that depends on your income.
• Have ongoing health conditions that could complicate recovery.
• Want protection that matches your lifestyle and responsibilities.

Only you know what deductible and premium amounts you feel comfortable paying. Consider your full situation when purchasing insurance coverage rather than simply selecting the cheapest option.

Taking Action on Your Coverage

Check your current policy today. Look for the PIP coverage amount listed in your declarations page. If you see only the $10,000 minimum, consider higher limits of coverage and talk to your independent insurance agent. These conversations should happen before you need the coverage, not after an accident when it's too late to change your limits.

For specific questions about your PIP coverage options or legal rights under Hawaii's no-fault system, consult with your insurance agent or legal professional who can provide guidance based on your individual circumstances.

Frequently Asked Questions

Q: What is Hawai'i's no-fault insurance system?

A: Hawai'i is a no-fault state, which means your insurance company pays your medical expenses after any car accident, regardless of who caused the crash. This allows injured people to receive medical care quickly rather than waiting for fault determination.

Q: What does Hawaii's basic PIP coverage pay for?

A: PIP covers accident-related medical care including emergency room treatment, hospital stays, doctor visits, physical therapy, chiropractic care, medical equipment, and ambulance transportation up to your policy limit.

Q: What doesn't basic PIP coverage include?

A: Basic PIP excludes paychecks lost while recovering from injuries and funeral costs. You can purchase optional coverage for wage replacement, death benefits up to $100,000, and funeral expenses of $2,000.

Q: How does a PIP claim work after an accident?

A: You call your own insurance company, not the other driver's, and your PIP coverage pays your medical bills immediately before your health insurance processes anything. Your passengers also get protection under your policy limits

Sources

1. Hawaii Department of Commerce and Consumer Affairs. Motor Vehicle Insurance Information. Available at: https://cca.hawaii.gov/ins/consumers/mvi/
2. Hawaii Revised Statutes 431:10C-103.5 – Personal injury protection benefits; defined; limits. Available at: https://www.capitol.hawaii.gov/hrscurrent/vol09_ch0431-0435h/hrs0431/HRS_0431-0010C-0103.htm
3. National Highway Traffic Safety Administration. Report: Motor Vehicle Insurance in the United States. Available at: https://www.nhtsa.gov/document/report-motor-vehicle-insurance-united-states