Insurance in Hawaii: State Rules and Requirements

Insurance in Hawaii

The rules that shape car, home and business insurance in Hawaii, each linked to its official source, and how to get coverage shopped here. Sam Alishahi holds a Hawaii nonresident insurance producer license (NPN 21022298) and places Hawaii policies directly.

By Sam Alishahi · Reviewed October 2026

Car insurance in Hawaii (40/80/20)

Minimum car insuranceFor policies issued or renewed on or after January 1, 2026, Hawaii requires at least $40,000 bodily injury per person, $80,000 per accident and $20,000 property damage (up from the old 20/40/10), plus $10,000 of personal injury protection (PIP). Insurers must offer uninsured and underinsured motorist coverage, which the buyer may decline in writing. Source
Fault systemHawaii is a no-fault state: each driver's own PIP pays their medical bills regardless of who caused the crash, and a lawsuit against the other driver is limited to more serious injuries. Source

Business insurance rules in Hawaii

Workers’ compensationAny employer with one or more employees, full-time or part-time, permanent or temporary, must provide workers' compensation unless the employment is specifically excluded by law. Employers buy coverage from private insurers or qualify to self-insure; Hawaii is not a monopolistic state and does not allow opting out. Source
Contractor licensingThe Contractors License Board (Professional and Vocational Licensing Division, DCCA) licenses contractors and requires proof of general liability insurance (at least $100,000 per person and $300,000 per occurrence for bodily injury, and $50,000 for property damage) plus workers' compensation coverage, or a sole-proprietor exemption form when there are no employees. The board can also require a surety bond, and a license is forfeited if insurance or bond coverage lapses. Source

Home insurance in Hawaii

Home insurer of last resortHPIA was created by the legislature in 1991 for homes in the lava zones on Hawaii Island and now provides basic property coverage statewide to owners who cannot get it from private insurers. Hurricanes are the main catastrophe exposure, along with volcanic lava flow on the Big Island. Source

High-value homes in Hawaii.

Disasters, floods, hail, tornadoes and earthquakes in Hawaii

Hawaii disasters, floods, hail, tornadoes and earthquakes, from federal records
Measure	Hawaii	Rank among the states	Detail
Federal major disaster declarations since 2000	21	#35 (tied) of 51	Most often for severe storm (8), flood (5), earthquake (2). Maui County has been in 12 of them.
National Flood Insurance Program claims, 2005–2025	2,677	#33 of 51	$100.4 million paid; 26% of claims with a known flood zone were outside FEMA’s high-risk zones.
Hail reports, 2016–2025	2	#51 of 51	0 of them 2 inches or larger. Largest stone 1.25 inches, Honolulu County, March 2023.
Tornadoes, 2016–2025	0	—	0 rated EF2 or stronger; 41 recorded since 1950.
Earthquakes of magnitude 4.0+, 2000–2025	213	#4 of 51	Largest: magnitude 6.9, 18 km SSW of Leilani Estates, Hawaii, May 4, 2018.

From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.

Look up the storm history of any county in Hawaii.

The property risks that matter in Hawaii

After the 2023 Maui wildfires, Hawaii homeowners and condo associations have faced sharp changes in availability and price.

Wind from tropical storms is the defining property risk along the Hawaii coast. Ask whether your policy uses a named-storm deductible, how it is triggered, and whether roof upgrades or shutters earn a mitigation credit.

Wildfire risk has changed home insurance availability in parts of Hawaii. Defensible space, ember-resistant vents and a Class A roof help eligibility, and if private insurers decline, ask about the residual market and difference-in-conditions coverage.

Volcanic eruption is typically covered for direct physical loss on many policies, but availability in lava zones 1 and 2 is limited, which is why the Hawaii Property Insurance Association exists.

Tsunami damage is generally treated as flood and excluded from homeowners policies, so coastal Hawaii owners should consider flood insurance.

Worth knowing in Hawaii

After Hurricane Iniki in 1992, private insurers stopped writing hurricane coverage, so the state ran its own Hawaii Hurricane Relief Fund. The fund stopped issuing policies in 2002 once private insurers came back. Hawaii is also one of the few states where lava-zone location decides whether a home can get private coverage.

Annual review checklist for Hawaii

Compare your auto liability limits with the Hawaii minimum of 40/80/20 (raised from 20/40/10 on January 1, 2026) and with your actual assets.
Find your hurricane or named-storm deductible in dollars and set aside that amount.
Document defensible space and home hardening work with dated photos for your insurer.
Know your lava zone and whether your insurer writes there.
Check tsunami evacuation zones and consider flood coverage.
Landlords: confirm fair rental value and liability on each unit.

Hawaii’s insurance regulator

Insurance in Hawaii is regulated by the Hawaii Insurance Division, Department of Commerce and Consumer Affairs, which handles consumer complaints and licenses insurers and agents.

Sam Alishahi holds a Hawaii nonresident insurance producer license (NPN 21022298) and places Hawaii policies directly.

Common questions

What is the minimum car insurance in Hawaii?

For policies issued or renewed on or after January 1, 2026, Hawaii requires at least $40,000 bodily injury per person, $80,000 per accident and $20,000 property damage (up from the old 20/40/10), plus $10,000 of personal injury protection (PIP). Insurers must offer uninsured and underinsured motorist coverage, which the buyer may decline in writing.

Is Hawaii a no-fault state?

Hawaii is a no-fault state: each driver's own PIP pays their medical bills regardless of who caused the crash, and a lawsuit against the other driver is limited to more serious injuries.

Do employers in Hawaii need workers’ comp?

Any employer with one or more employees, full-time or part-time, permanent or temporary, must provide workers' compensation unless the employment is specifically excluded by law. Employers buy coverage from private insurers or qualify to self-insure; Hawaii is not a monopolistic state and does not allow opting out.

What can a Hawaii homeowner do if no insurer will write the house?

HPIA was created by the legislature in 1991 for homes in the lava zones on Hawaii Island and now provides basic property coverage statewide to owners who cannot get it from private insurers. Hurricanes are the main catastrophe exposure, along with volcanic lava flow on the Big Island.

Does Hawaii homeowners insurance cover hurricanes?

Wind damage from hurricanes is generally covered, often subject to a separate hurricane deductible. Storm-surge flooding requires flood insurance.

Why are insurers declining homes in parts of Hawaii?

Wildfire risk models and rising rebuild costs have led some insurers to limit new business in high-risk areas.

More answers: Hawaii homeowners insurance guide Hawaii renters insurance and security deposit guide Hawaii small business insurance requirements Hawaii flood risk and NFIP guide Hawaii life insurance consumer guide Honolulu home and auto insurance guide Hilo home and auto insurance guide

Sources

General information as of October 2026, not legal advice; confirm current rules with the agency.

Tell me what you need insured.

Home, car, business, trucks or something harder to place. One request, and I take it from there.

Alishahi Insurance · Saman Alishahi, independent insurance broker, 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210. General information, not a quote or a promise of coverage.

Insurance in Hawaii