What Does “No Fault” Mean for My Car Insurance in Hawaii?
July 6, 2026
What Does “No-Fault” Mean for My Car Insurance in Hawaii?
If you’ve heard Hawaii described as a “no-fault” state, you may wonder what that actually means after a car accident.
Many people assume “no-fault” means nobody is responsible for a crash or that insurance companies simply divide up the costs. In reality, Hawaii’s no-fault system applies primarily to injury claims, while property damage is generally handled differently.
Here’s what Hawaii drivers should know.
No-Fault vs. Tort: What’s the Difference?
States generally use one of two systems for handling auto insurance claims.
Tort States
In a traditional tort state, the driver who causes the accident is generally responsible for paying for injuries and property damage. The injured party may also pursue a claim or lawsuit against the at-fault driver.
No-Fault States
In a no-fault state like Hawaii, drivers typically turn to their own insurance company first for certain injury-related expenses, regardless of who caused the accident.
This system is intended to help injured people receive medical benefits more quickly while reducing litigation for less serious injuries.
How Hawaii’s No-Fault System Works
Hawaii requires vehicle owners to carry Personal Injury Protection (PIP) coverage. PIP helps pay for certain medical and rehabilitation expenses resulting from a covered auto accident, regardless of who was at fault. Hawaii law requires drivers to carry at least $10,000 in PIP coverage, though additional PIP benefits may be available.
In practical terms, this means that if you’re injured in an accident, your own PIP coverage generally responds first for covered medical expenses, even if another driver caused the crash.
Does No-Fault Apply to Vehicle Damage?
No.
This is where many drivers get confused.
Hawaii’s no-fault rules generally apply to bodily injuries, not damage to vehicles or other property. For property damage claims, fault still matters.
If another driver causes an accident and damages your vehicle, that driver’s property damage liability coverage may be responsible for the damage, subject to the terms, conditions, and limits of the policy.
Can You Sue the Other Driver?
In some situations, yes.
Although Hawaii’s no-fault system limits lawsuits for minor injuries, there are circumstances where an injured person may pursue a claim against the at-fault driver, particularly when injuries are severe enough to meet thresholds established by Hawaii law.
Hawaii’s Required Auto Insurance Coverages
As of January 1, 2026, Hawaii drivers must maintain at least the following minimum coverages:
- $10,000 Personal Injury Protection (PIP)
- $40,000 Bodily Injury Liability per person
- $80,000 Bodily Injury Liability per accident
- $20,000 Property Damage Liability
These limits were increased effective January 1, 2026, replacing the previous 20/40/10 liability requirements that had been in place for many years.
Is the Minimum Coverage Enough?
The minimum limits required by law are designed to help drivers meet Hawaii’s insurance requirements, but they may not provide enough protection in a serious accident.
Medical costs, vehicle repairs, and liability claims can quickly exceed state minimum limits. Many drivers choose to purchase higher liability limits and consider additional protections such as:
- Uninsured Motorist (UM) coverage
- Underinsured Motorist (UIM) coverage
- Collision coverage
- Comprehensive coverage
Your independent insurance agent can help you evaluate what makes sense based on your vehicle, assets, and personal circumstances.
The Bottom Line
“No-fault” doesn’t mean nobody is responsible for an accident. In Hawaii, it simply means your own insurance generally pays certain injury-related expenses first through PIP coverage, regardless of fault. Property damage claims, however, are still typically handled based on who caused the accident.
As auto repair and medical costs continue to rise, it’s a good idea to review your coverage periodically and make sure your policy still provides the protection you expect.
Need an auto insurance review and quote? Get a personal auto insurance quote from FICOH.