Optional Auto Coverages That Offer Extra Protection in Hawai'i

Hawai'i law requires all vehicle owners to carry minimum auto insurance coverage [1]. These mandated coverages address basic needs, but they have limits. Optional coverages fill the gaps. For more information about Hawai'i's required auto insurance minimums, see our article.

This guide explains the optional coverages available to Hawaii drivers and how they work.

Collision Coverage: When Accidents Happen

Collision coverage provides protection for your vehicle after an accident, regardless of fault. This coverage handles repairs or replacement whether you've collided with another car, slid into a guardrail, or rolled your vehicle. When an accident occurs, Collision coverage steps in to take care of the damage to your car, giving you financial protection in these situations.

If you're financing or leasing your vehicle, your lender may require this coverage. But even if you own your car outright, Collision coverage can prevent a major expense after an accident.

You'll choose a deductible when you buy this coverage. A $500 deductible means you pay the first $500 of repairs, and your insurance covers the rest. Higher deductibles lower your premium. Lower deductibles mean less money out of your pocket after an accident.

Comprehensive or Other than Collision (OTC) Coverage: Everything Else

OTC coverage protects your vehicle from non-collision damage. This coverage handles weather-related incidents like a tree branch falling on your hood during a storm, as well as road hazards like a rock cracking your windshield on the H-3. Essentially, OTC coverage addresses all the unexpected events that can damage your vehicle outside of actual collisions.

Hawai'i's environment makes this coverage particularly relevant. Tropical storms, volcanic ash, falling branches, and even wild pigs can damage vehicles. OTC coverage handles these risks.

Like Collision coverage, you'll select a deductible. Lenders typically require OTC coverage if you're financing or leasing.

Uninsured Motorist and Underinsured Motorist Coverages

Unfortunately, not every driver follows the law. Some drive without insurance. Others carry the bare minimum, which may not be enough if they cause serious injuries.

Uninsured Motorist coverage protects you when the at-fault driver has no insurance or flees the scene [1]. Minimum coverage starts at $20,000 per person. Note that the minimum will increase to $40,000 per person on January 1, 2026 [1].

Underinsured Motorist coverage kicks in when the at-fault driver has insurance but not enough to cover your damages [1]. This coverage also starts at $20,000 per person [1]. Note that the minimum will increase to $40,000 per person on January 1, 2026.

You may also purchase Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages at limits up to but no greater than the Bodily Injury Liability limit under your policy, as well as the option to “stack” your Uninsured Motorist or Underinsured Motorist (UIM) limit by the number of vehicles covered under your policy.

For example, if your Bodily Injury Liability limit is $100,000 per person, and your policy covers two cars, you may purchase “stacked” Uninsured Motorist (or Underinsured Motorist) coverage with limits up to but no greater than $100,000, which would result in potential coverage up to $200,000 ($100,000 multiplied by two vehicles) for damages caused by an at-fault uninsured driver.

If you are interested in an auto insurance policy, your insurance company or local insurance agent will ask you about these optional coverages. You can decline them in writing but ask any questions you have before doing so and consider the protection they offer [1].

Other Optional Coverages

Beyond the required PIP coverage, you can add optional enhancements [1]. These include wage loss coverage, alternative care options, death benefits, funeral benefits, PIP deductible options, PIP managed care, and higher limits of PIP coverage (potentially up to $100,000) [1].

These additions provide financial protection during recovery. For a detailed explanation of PIP coverage and optional enhancements, see our article.

Making Your Choice

There are several factors to consider when deciding which optional coverages make sense for you.

• Your vehicle's value: A newer car represents a bigger investment to protect. An older car with a low market value may not justify Comprehensive and Collision premiums.
• Your loan or lease terms: Lenders may require certain coverages. Check your agreement or speak with your insurance agent.
• Your financial situation: Could you replace your car tomorrow if it were totaled? If not, Collision and Comprehensive coverage provide a safety net. Could you handle medical bills beyond the basic PIP limits and do not have adequate health insurance coverage? If not, consider PIP enhancements.
• Hawaii's roads and weather: Our narrow highways, heavy traffic, and tropical weather create specific risks. Comprehensive and Collision coverage addresses many of these concerns.

It is important to work with a local insurance agent who understands these factors and can recommend coverages based on your situation.

Getting the Protection You Need

Optional coverages cost more than the minimum required policy. That's a fact. But they can prevent financial problems after an accident or covered loss.

Review your current policy. Consider your vehicle, your budget, and your comfort with risk. Then talk with your insurance agent about building a policy that fits your needs.

Frequently Asked Questions

Q: What's the difference between Collision and Comprehensive (Other than Collision) coverage?

A: Collision coverage protects your vehicle after an accident with another car or object, regardless of fault. Other than Collision coverage protects your vehicle from non-collision damage like weather, theft, vandalism, falling branches, or hitting animals.

Q: When am I required to have Collision and Comprehensive coverage?

A: If you're financing or leasing your vehicle, your lender typically requires both Collision and Comprehensive (Other than Collision) coverage. If you own your car outright, these coverages are optional but can prevent major expenses.

Q: What's the difference between Uninsured Motorist and Underinsured Motorist coverage?

A: Uninsured Motorist coverage protects you when the at-fault driver has no insurance or flees the scene. Underinsured Motorist coverage kicks in when the at-fault driver has insurance but not enough to cover your damages.

Q: What does "stacking" Uninsured or Underinsured Motorist coverage mean?

A: Stacking multiplies your UM or UIM coverage limit by the number of vehicles on your policy. For example, with $100,000 coverage on two cars, stacking provides up to $200,000 in potential coverage.

Q: What optional enhancements can I add to my PIP coverage?

A: You can add wage loss coverage, alternative care options, death benefits, funeral benefits, PIP deductible options, PIP managed care, and higher coverage limits potentially up to $100,000.

Sources

1. Hawaii Department of Commerce and Consumer Affairs, Insurance Division. Motor Vehicle Insurance Information. Available at: https://cca.hawaii.gov/ins/consumers/mvi/