About Car Insurance Honolulu

Optional Coverage's:

Uninsured/under insured motorist coverage. Drivers that are concerned about being involved in an accident with an uninsured motorist may purchase this optional coverage to ensure their losses are covered.

Medical Payments Coverage. This optional type of coverage covers reasonable expenses you and your passengers may incur because of injury in a motor vehicle accident, regardless of who may be at fault. Coverage amounts that are available vary from company to company. You may wish to purchase this if you do not have health insurance, or to supplement any health insurance policy you may currently have.

Collision & Comprehensive. Collision insurance covers damages to your car caused by another vehicle, an object or a rollover. Its not required by law, but most banks will require collision coverage if you are financing your car. Comprehensive insurance protects you against damage to your own car from things like fire, theft, glass damage, hail, wind, flood or vandalism. If your car is older you may want to consider not getting this type of coverage as you will save money on your insurance premiums. 

Parts of your Insurance policy:

There are some types of coverage that are required by state law, depending on where you live. While others are optional and you must consider each one and ask yourself how much coverage you may need. Each type of coverage whether required or optional has its own premium. When they are added up you have got the price of your insurance policy. If you subtract the ones you may not need you will have some control over the cost of your auto insurance policy and thereby save money.

1. Bodily injury liability (BI) This coverage covers you if you cause an accident in which someone else is hurt or killed. State laws differ about how much you are required to carry but many financial and insurance experts recommend that people carry at least $100,000 per person and $300,000 per occurrence expressed as "100/300." By thinking about what you assets you may be trying to protect and considering what you can afford will help in deciding how much coverage to purchase.

2. Property damage liability (PD) coverage covers you when you are responsible for damaging someone else’s property. Most often it is someone’s car, but it could apply to about any physical property such as buildings, houses, walls, utility poles, garage doors, etc. State laws will determine the minimum amount of coverage that you must purchase.

3. Collision coverage covers damage to your vehicle if you run into another car, a wall, fire hydrant, or about any other object. The law does not require this type of coverage.  However, your bank may require it if you have an auto loan. You are allowed to choose a deductible on this type of coverage.  The deductible is what you must first pay out of your own pocket for a claim before the insurance will kick in.

4. Comprehensive coverage covers you in case your car is stolen or damaged in ways that don’t involve a collision. Covered risks include fire, theft, hail, flood, earthquake, explosions, falling objects, and collisions with animals, such as elk or cows. Comprehensive is optional coverage, however, your bank will usually require it if you have an auto loan. You will be able to choose the deductible for this type of coverage.

5. Uninsured/Under insured motorist (UM/UIM) coverage covers medical and other expenses when you are hit by a driver who does not have adequate insurance or by a driver who does not have insurance.  This type of coverage may be mandatory or optional depending on the laws of your state. You may purchase this additional coverage which will pay for damage to your car if hit by an uninsured motorist, but many people instead just purchase collision and comprehensive.

6. Medical payments coverage (Med Pay, or MPC) This acts as primary coverage for medical expenses for you and your passengers that are incurred if anyone is injured in a motor vehicle accident, no matter who may be at fault.