This would be a much shorter article if we could tell you the one car insurance company that has the lowest rates in Hawaii. It’s just not that easy, however, as there are a whole bunch of unknown factors such as whether or not your vehicle has good safety ratings, if you are a homeowner or renter, what physical damage coverage deductibles you want, and if you need full coverage or just liability, that help determine the price you have to pay. The content below will cover the best ways to avoid overpriced car insurance and hopefully give you enough understanding to have a solid foundation to find cheaper car insurance in Honolulu.
Trying to find cost effective insurance is difficult, and figuring out which insurers offer the best insurance rates for a school permit may require additional perseverance.
Each auto insurance company has their own process to set their prices, so we need to take a look at the insurance companies with the most affordable rates in Hawaii. Keep in mind that Honolulu, HI insurance rates are impacted by many things that will increase or decrease the policy price. Improving your credit score, getting married, or getting a driving violation can cause premium changes that can now make some companies less affordable than competitors.
Find the Best Cheap Insurance for Students
|Rank||Company||Cost Per Year|
|7||First of Hawaii||$1,928|
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USAA may have some of the most affordable car insurance rates in Honolulu at around $926 per year. State Farm, GEICO, Liberty Mutual, and Progressive also make the cut as some of the most economical Honolulu, HI insurance companies.
As shown in the rates above, if you currently buy coverage from Progressive and switched to State Farm, you could realize a yearly savings of upwards of $521. Hawaii drivers with Allstate could save as much as $839 a year, and First of Hawaii insureds might reduce rates by $841 a year.
Bear in mind that those premiums are averaged across all drivers and vehicles in Hawaii and do not take into consideration a specific vehicle garaging location for a school permit. So the company that can offer the best rates for your situation may not even be in the list above. That points out the importance of why you need to quote rates from as many companies as possible using your own driver and vehicle profiles.
One of the more important things that are used to help calculate the amount you pay each year for auto insurance is where your residence is. Larger areas will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper car insurance.
The table below shows the most costly cities in Hawaii for a school permit to buy auto insurance in. Honolulu is ranked at #6 with an annual cost of $1,047 for car insurance, which is approximately $87 each month.
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Annual rates are estimated as specific location information can affect premiums noticeably.
Should you buy full coverage?
Finding cheaper insurance is the goal of most people, and one easy way to lower the cost of insurance for a school permit is to buy only liability coverage. The information below visualizes the comparison of annual premium costs with and without physical damage coverage. The data assumes no violations or accidents, $250 deductibles, marital status is single, and no other discounts are factored in.
If we average the cost for all age groups, physical damage coverage costs an extra $1,863 per year over and above liability only. That is a large expense which might make you wonder when is the right time to remove full coverage. There is no specific rule of when to drop comp and collision coverage, but there is a general guideline. If the annual cost of comprehensive and collision coverage is more than around 10% of any settlement you would receive from your insurance company, then it might be time to consider dropping full coverage.
For example, let’s say your vehicle’s book value is $9,000 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most you would get paid by your company is $8,000 after paying your policy deductible. If you are paying more than $800 annually for full coverage, then you may need to consider dropping full coverage.
Careless driving habits raise Honolulu insurance rates
A great way to snag affordable insurance premiums for a learners permit is to be a safe driver and avoid traffic citations and accidents. The diagram below demonstrates how traffic citations and at-fault collisions raise premium costs for different age categories. The premiums assume a single male driver, full physical damage coverage, $100 deductibles, and no discounts are applied.
In the prior example, the average cost of car insurance per year with no accidents and a clean driving record is $1,523. Add in two speeding tickets and the average cost rises to $2,020, an increase of $497 each year. Next add two accidents along with the two speeding tickets and the yearly cost of insurance for a school permit jumps again to an average of $3,779. That’s an increase of $2,256, or $188 per month, just for not driving attentively!
The information below demonstrates how choosing different deductibles can raise or lower insurance costs when trying to find cheap insurance for a school permit. The price estimates are based on a single female driver, comprehensive and collision coverage, and no policy discounts are applied.
The data above shows that a 30-year-old driver could save $242 a year by switching from a $100 deductible to a $500 deductible, or save $364 by changing to a $1,000 deductible. Even younger drivers, such as the 20-year-old chart data, could potentially save as much as $532 each year just by using higher deductibles.
When insureds make the decision to increase the deductibles on their policy, it is essential to have enough savings set aside to satisfy the extra out-of-pocket expense that comes with higher deductibles.
Compare quotes and save
Honolulu insurance rates are calculated based on many things that can increase the cost of your policy. Improving your credit score, buying higher coverage limits, or getting a few speeding tickets can cause premium changes that may make certain companies more affordable than before.
Also, insurance companies file new Hawaii auto insurance rates as often as every quarter in order to maintain liquidity for claims. Larger than normal claims can result in more expensive prices, while lower claim expenses may result in more affordable Honolulu car insurance rates.
For example, the graph below shows which company has the cheapest car insurance in Honolulu, HI for a 30-year-old female driver with a good driving record, no prior claims, and a decent credit rating. Based on her personal risk profile, USAA quotes the best car insurance rates in Honolulu at $974 per year. This is $622 less than the average rate paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive are the remaining top five cheapest Honolulu, HI auto insurance companies.
Now we will give the driver from above an accident claim, poor credit, and a couple of points charged on her driving record. Since every car insurance company uses their own formula for setting prices, getting updated rate quotes could result in a slightly different list of affordable companies as shown below.
State Farm now has the cheapest rate in Honolulu with GEICO, USAA, First of Hawaii, and Progressive now rounding out the top five. This example illustrates why Hawaii drivers need to perform a complete rate comparison to get affordable car insurance rates for a school permit.
Prices are calculated by many risk factors and change frequently, so the most economical company the last time you compared rates may now not even be in the top five.