Cheapest and Best Car Insurance in Honolulu, HI (July 2024)

In Honolulu, Hawaii, the most affordable car insurance can vary by coverage and driver profile. For minimum and full coverage, GEICO offers the best rates. Families with teens will also find GEICO economical.

For customer service excellence, State Farm stands out, also claiming the title for best overall, which considers both price and service. Choosing the best insurance is subjective, hinging on individual preferences and needs.

GEICO is the cheapest option for the cheapest car insurance in Honolulu.

• GEICO: $267 per year
• Island Insurance Group: $373 per year

Progressive has the most expensive minimum coverage policy in Honolulu, with an annual premium of $519. This is $252 more per year compared with GEICO. Such a substantial difference highlights the importance of comparing rates to ensure consumers are not overpaying for car insurance.

State Minimum Liability Requirements

In every Hawaiian city, including Honolulu, state laws dictate the minimum car insurance coverage required. Here's what you need to know:

• $20,000 bodily injury per person
  
• $40,000 bodily injury per accident
  
• $10,000 property damage liability per accident
  
• $10,000 personal injury protection (PIP) per person
  

For example, you're at fault in a fender-bender that results in the other party's injury. If your minimum coverage is $20,000 for bodily injury per person and the expenses hit that limit, your policy will cover it. But if medical bills soar beyond $20,000? Then, unfortunately, those extra costs come out of your pocket.

GEICO is the cheapest option in Honolulu, offering budget-conscious drivers significant savings on their yearly expenses. When searching for the cheapest full coverage car insurance, compare rates from various providers.

• GEICO: $627 per year
• Farmers: $790 per year

Progressive has the most expensive full coverage policy in Honolulu at $1,155 annually. This $528 difference from GEICO's rate highlights why it's crucial to shop around. Full coverage policies cost more due to comprehensive and collision insurance, which form a safety net beyond what minimum coverage offers, protecting against a variety of incidents on and off the road.

Do You Need Full Coverage in Hawaii?

A full coverage policy in Honolulu includes coverage for damage to your own vehicle in the form of comprehensive and collision coverages. It usually also includes increased liability limits.

• Collision Insurance: This provides coverage for your vehicle in the event of a collision, whether with another vehicle or or a stationary object like a tree or light pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This coverage insures your vehicle against various types of damage not caused by collisions, including theft, vandalism, fires, natural disasters and being struck by an animal like a deer.

If you have a new vehicle, it's wise to opt for full coverage insurance for more robust financial protection. If you're leasing or have a car loan, you are typically required to carry full coverage insurance.

On the other hand, owners of older vehicles may find that the extra cost — which can amount to several hundred dollars more per year — is not justified by the value of the vehicle. When deciding how much car insurance coverage you need, consider your ideal balance: more extensive coverage comes with higher premiums, but getting less coverage means you may pay more out of pocket if you need to file a claim.

The cheapest company for drivers with a poor driving record for a full coverage policy in Honolulu depends on the specific nature of the driving offense.

• Speeding ticket: GEICO ($627 per year)
• At-fault accident: GEICO ($956 per year)
• DUI: State Farm ($1,029 per year)

This variance demonstrates the substantial variance in annual car insurance rates in Honolulu subject to the severity of a driving offense. Island Insurance Group charges the highest annual premium post-DUI at $8,116.

In Honolulu, as with many cities, insurance premiums typically increase with the severity of a driving offense due to the heightened risk perceived by insurers. For instance, drivers with a DUI pay an average of $3,455 annually, significantly higher than the $1,092 average annual rate for those with a speeding ticket. This contrast underscores the need for drivers with infractions to diligently compare insurance rates, ensuring they find the most financially viable coverage for their circumstances.

GEICO offers the cheapest car insurance for teens in Honolulu, with no rate difference between male and female teen drivers.

• GEICO: $758 per year for female and male teens
• State Farm: $768 per year for female and male teens

These rates reflect the cost of adding a teenager to a policy with two parents. Progressive holds the most expensive teen family policy in Honolulu at $1,659 annually for both female and male teens. The difference of $901 between the cheapest and the most expensive underscores the necessity for families to compare rates, especially when insuring high-risk drivers like teenagers.

In Honolulu and other urban areas, teen drivers face significantly higher car insurance premiums when purchasing an individual policy compared with being added to a family plan. On average, an individual teen policy costs approximately $1,326 annually, whereas teens benefit from a reduced rate of $1,050 when included in a family plan.

The disparity stems from insurers viewing teens as high-risk drivers, thus charging higher premiums to mitigate potential claims. Securing individual policies can be challenging for teens due to their inexperience and the perceived risk they pose, which is why a joint family policy is not only cost-efficient but often more accessible.

In Honolulu, GEICO offers the cheapest car full coverage insurance for military backgrounds:

• GEICO: $627 per year
• USAA: $687 per year

Although USAA is not the cheapest, ranked second with an annual premium of $687, it offers service that caters specifically to the needs of active-duty military members and is highly competitive in the state.

In Honolulu, comparing car insurance rates is a key strategy for cost savings. However, the process is often cumbersome, potentially requiring over an hour to examine rates from three or more companies.

MoneyGeek's car insurance calculator can help you streamline this process. By inputting details like age, driving history, credit score and preferred coverage, you can instantly receive rate estimates.

Finding the best auto insurance in Honolulu hinges on your priorities, considering cost, coverage, service, and other variables. MoneyGeek's unique scoring system evaluates these aspects to identify top insurers for diverse needs:

• Best overall: State Farm (MoneyGeek score 67 out of 100)
• Best for service: State Farm (MoneyGeek score 67 out of 100)
• Best cheap: GEICO (MoneyGeek score 71 out of 100)

Given that State Farm leads in overall excellence and service, those seeking a blend of dependable support and reasonable costs will find it attractive. Meanwhile, GEICO stands out as the go-to for budget-conscious consumers, offering substantial savings without significant compromises on service.

State Farm offers the best option in Honolulu for car insurance. Drivers seeking the best car insurance can turn to State Farm, which has the highest MoneyGeek score in the area.

• State Farm: MoneyGeek score of 67 out of 100 ($930 per year)
• Farmers: MoneyGeek score of 67 out of 100 ($790 per year)

With a full coverage policy from State Farm, customers benefit from an insurer that balances good customer service with reliable claims handling.

State Farm is the best option in Honolulu for outstanding customer service in car insurance. Their recognition comes from exceptional customer satisfaction, superior claims handling and comprehensive coverages, independent of its insurance rates.

• State Farm: MoneyGeek score of 67 out of 100 ($930 per year)
• Farmers: MoneyGeek score of 66 out of 100 ($790 per year)

State Farm distinguishes itself with the highest marks in general satisfaction and claims handling. This demonstrates the company's commitment to providing customers with an exceptional service experience and dependable claims support.

GEICO is the best option in Honolulu if you’re seeking the most affordable car insurance without compromising on quality. This title is earned through a rigorous evaluation where affordability is a substantial factor, alongside claims handling and general customer satisfaction.

• GEICO: MoneyGeek score of 71 out of 100 ($267 per year)
• State Farm: MoneyGeek score of 65 out of 100 ($436 per year)

For drivers who prioritize economical rates for a minimum coverage policy, GEICO leads the pack without neglecting the importance of customer service and claims processing efficiency.

The average cost of car insurance in Honolulu is $912 per year. Comparatively, this is slightly higher than the average car insurance cost in Hawaii, which stands at $902. Furthermore, when Hawaii's average is weighed against the national average car insurance premium of $1,781, it is significantly lower.

Car insurance premiums are determined by a multitude of factors, with location being one key element. Location is important because it takes into account the potential risks associated with certain geographies, such as accident rates, theft incidents and natural disasters which can vary from one area to another. In rural or non-city areas, where traffic density is often lower, insurance rates may be even less.