You have probably seen the ads from auto insurance companies like Allstate and The General that guarantee huge savings. So drivers just need to choose the one with the most memorable commercial, right?
Unfortunately, it’s not that simple as there are many unknown factors such as the neighborhood you live in, your credit rating, whether or not you are currently insured, and your gender. We are going to cover the types of situations that result in high rates and will hopefully give you a good start in finding the cheapest car insurance in Hawaii.
One of the many things that aid in calculating the annual cost of car insurance is where you live. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas that tend to be more rural have the enjoyment of a little cheaper coverage.
The information below lists the most costly cities in Hawaii for drivers with bad credit to buy car insurance in. Honolulu ranks #14 with a yearly premium of $1,016 for the average policyholder, which is approximately $85 per month.
|Rank||City||Premium Per Year|
|Get a Custom Quote Go|
Prices are estimated as zip code location can lower or raise premium rates significantly.
Deciding which company has the lowest-priced insurance rates for drivers with bad credit may require a bit more effort than just comparing rates from one or two companies.
Every insurance company uses a different method for establishing rates, so we need to take a look at the insurance companies with the overall cheapest rates in Hawaii.
Compare Cheap Insurance Quotes with Bad Credit
|Rank||Company||Cost Per Year|
|7||First of Hawaii||$1,987|
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USAA may have some of the best car insurance rates in Honolulu at around $926 per year. This is $670 less than the average policy premium paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive also make the cut as some of the lowest-priced Honolulu, HI auto insurance companies.
In the above rates, if you currently have coverage with Progressive and switched to State Farm, you may see annual savings of roughly $489. Policyholders with Allstate could save as much as $819 a year, and First of Hawaii policyholders might lower prices by $900 a year.
To see if you’re overpaying, click here to get a free quote or visit any of the companies below.
Bear in mind that those rates are averaged for all insureds and vehicles and and are not calculated with a specific vehicle garaging location for drivers with bad credit. So the auto insurance company that has the cheapest price for you may not even be in the list above. That is why you need to compare rates from multiple companies using your own individual information.
How accidents and violations affect rates
A great way to snag the cheapest insurance prices in Hawaii for people with poor credit is to drive carefully and avoid accidents and traffic violations. The illustration below highlights how speeding tickets and fender-benders can impact insurance rates for each age group. The costs are based on a single male driver, full physical damage coverage, $500 deductibles, and no policy discounts are applied.
In the prior example, the average cost of car insurance in Hawaii per year with no violations or accidents is $1,671. Add in one speeding ticket and the average cost increases to $1,885, an increase of $214 each year. Now include two accidents along with the one speeding ticket and the yearly cost of insurance for drivers with bad credit increases to an average of $3,809. That’s an increase of $2,138, or $178 per month, just for not maintaining a clean driving record!
Discounts on Honolulu car insurance
Insurance providers that offer coverage for drivers with bad credit may have rate discounts that can lower rates by 35% or more if you meet specific eligibility requirements. A few of the larger companies and a selection of discounts are detailed below.
- American Family has savings for TimeAway discount, defensive driver, good driver, early bird, and mySafetyValet.
- State Farm may have discounts that include accident-free, good student, multiple policy, good driver, defensive driving training, and student away at school.
- 21st Century offers premium reductions for 55 and older, automatic seat belts, air bags, early bird, theft prevention, and teen driver.
- Travelers includes discounts for hybrid/electric vehicle, IntelliDrive, save driver, multi-car, early quote, good student, and multi-policy.
- GEICO may include discounts for anti-lock brakes, anti-theft, defensive driver, daytime running lights, military active duty, and federal employee.
The diagram below shows the difference between insurance costs with and without discounts applied to the rates. The costs are based on a male driver, no accidents, no driving violations, Hawaii state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with accident-free, marriage, homeowner, anti-theft, defensive driving course, and passive restraint discounts applied. When taking advantage of discounts, the average savings per year on insurance for drivers with bad credit is 28% or $470.
Why are you paying too much for Honolulu car insurance?
Honolulu insurance rates are calculated based on many things that may substantially change the price you pay for coverage. Improving your credit rating, adding a teenager to your policy, or getting a reckless driving citation may cause policy rate changes resulting in some rates now being much cheaper than others. Not only may your risk profile change, but companies change the rates they charge in Hawaii as needed to reflect underwriting profits or losses. An extended period of higher than normal claims may cause more expensive premiums, while less frequent claims can cause cheaper Honolulu car insurance rates.
To illustrate this point, the data below shows the company with the cheapest car insurance in Honolulu, HI for a 45-year-old male driver with no accidents, a clean driving record, and excellent credit. If we estimate prices based on his current risk profile, USAA might offer the best car insurance rates in Honolulu at $1,013 each year. This is $583 less than the average rate paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive also make the list of the most affordable Honolulu, HI auto insurance companies.
The next chart shows rates after we give the driver in the first chart an accident surcharge, a lower credit rating, and a couple of points charged on his driving record. Since each company has a proprietary method to establish rates, getting updated rate quotes may now present a different ranking of companies as shown below.
State Farm now has the best price on car insurance in Honolulu, HI with USAA, GEICO, First of Hawaii, and Liberty Mutual now being in the top five. This illustrates why consumers need to shop around with many companies to find cheap auto insurance quotes for drivers with bad credit. Rates are calculated by many things and can increase or decrease at any time, so the cheapest company the last time you shopped your coverage around may now not even be in the top five.
If you have questions and prefer to get help from a professional when shopping for cheaper insurance for drivers with bad credit, the agents shown below are willing to help you make a decision which auto insurance coverages would be the best in your situation.
To locate a Honolulu auto insurance agent near you, click the button at the bottom or click here to compare price quotes.
Kaina Kauahi – State Farm Insurance Agent
560 N Nimitz Hwy #217f – Honolulu, HI 96817 – (808) 524-9997
Royal State National Insurance Company
819 S Beretania St – Honolulu, HI 96813 – (808) 539-1600
Dee Ann Lee – State Farm Insurance Agent
600 Kapiolani Blvd #210 – Honolulu, HI 96813 – (808) 599-7666