Living in Honolulu means waking up to ocean views, year-round sunshine, and some of the most beautiful weather in the country. But island life also comes with unique insurance challenges that most mainland residents never think about. Between hurricane season, flood risks from tropical storms, and Hawaii's no-fault auto insurance system, protecting yourself and your property here requires a different approach than it would in, say, Ohio or Texas.
Whether you're moving to Oahu for the first time, buying your first home in Waikiki or Kailua, or just realized your current coverage might not be enough, this guide will walk you through everything you need to know about insurance in Honolulu. We'll break down what's required by law, what actually makes sense to buy, and how to find local agents who understand the specific risks of living on an island in the middle of the Pacific.
Auto Insurance in Honolulu: What You Actually Need
Hawaii's auto insurance requirements look a little different than most states because Hawaii is a no-fault state. That means when you get in an accident, your own insurance pays your medical bills first, regardless of who caused the crash. Here's what the law requires you to carry:
Personal Injury Protection (PIP) of $10,000 per person covers your medical expenses, hospital stays, doctor visits, physical therapy, and ambulance costs after an accident. This is mandatory in Hawaii. The basic $10,000 PIP doesn't cover lost wages or funeral expenses—those require optional add-ons. Bodily injury liability of $20,000 per person and $40,000 per accident protects you if you're at fault and someone else gets hurt. Property damage liability of $10,000 per accident covers damage to other people's cars and property when you're responsible.
In Honolulu, you'll pay an average of $167 per month for full coverage auto insurance—about 10% higher than the rest of Hawaii but still well below the $208 national average. The good news? Hawaii has had the most stable car insurance rates in the country over the past five years, with increases of just 4.17% compared to double-digit hikes in many other states. For 2026, rates are expected to rise by less than 1%, the smallest annual increase since 2022.
One thing to know about Hawaii's no-fault system: it's designed to get you medical treatment quickly without fighting over who caused the accident. But it also means you can't sue the other driver for pain and suffering unless your injuries are severe. Your PIP takes care of medical bills, but it won't cover general damages like emotional distress or disfigurement—and it definitely won't fix your car. That's where collision and comprehensive coverage come in, which aren't required by law but are usually worth having.
Homeowners Insurance: The Three-Policy Reality
Here's where things get complicated for Honolulu homeowners. A standard homeowners policy in Hawaii costs an average of $585 per year—incredibly affordable compared to the national average of $2,423. But there's a catch: that policy doesn't cover the two biggest risks you face living on Oahu. Standard homeowners insurance excludes hurricane damage and flood damage, which means you'll need two additional policies to actually protect your home.
Hurricane insurance in Hawaii averages $758 per year when purchased separately, though you can usually save about $100 by bundling it with your homeowners policy. While the state doesn't require hurricane coverage, your mortgage lender almost certainly will. And here's a critical detail most people miss: hurricane insurance covers wind damage but not flooding. If a hurricane's storm surge floods your home, your hurricane policy won't pay a cent. You need flood insurance for that.
Flood insurance in Honolulu averages $655 per year through the National Flood Insurance Program, with 38,524 policies currently active in the city. And before you think "I don't live near the beach, so I'm fine"—31.5% of all properties in Honolulu face flood risk over the next 30 years. Heavy rainfall, tropical storms, and poor drainage can cause flooding miles from the coast. Many homeowners in Manoa, Nuuanu, and other valleys have learned this the hard way.
So what does full protection actually cost? You're looking at about $1,890 to $2,142 per year total when you add up all three policies: homeowners, hurricane, and flood. That's still less than homeowners insurance alone in states like Florida or Louisiana, but it's important to budget for all three from the start. Many new Honolulu homeowners get sticker shock when they realize their $585 homeowners policy barely scratches the surface of what they actually need.
Finding Local Insurance Agents in Honolulu
While you can certainly buy insurance online from national carriers, working with a local Honolulu agent often makes more sense for island residents. Local agents understand the specific risks of living on Oahu—from hurricane preparedness to tsunami zones to lava flow coverage (yes, that's a thing, even though Oahu doesn't have active volcanoes). They know which carriers actually pay claims quickly after a major storm and which ones make you jump through hoops.
Honolulu has dozens of independent insurance agencies that can shop multiple carriers for you. Some of the most established include Atlas Insurance Agency, which has served Hawaii for over 90 years, and Monarch Insurance Services, in business since 1859 and one of the largest agencies in the state with access to virtually every local carrier. Independent agents like these can compare rates across companies like First Insurance Company of Hawaii, Island Insurance, and mainland carriers that operate in Hawaii.
You'll find agents throughout Honolulu in downtown offices on Bishop Street and Alakea Street, as well as locations in Aiea, Pearl City, and other neighborhoods across Oahu. Many specialize in bundling homeowners, hurricane, and flood policies to get you the best overall rate. And if you're buying a home near the water or in a known flood zone, a local agent can guide you through the sometimes-confusing NFIP application process and help you understand exactly what flood zone you're in.
What Coverage Actually Makes Sense for Honolulu Residents
Beyond the legal minimums, here's what most Honolulu residents should seriously consider. For auto insurance, bump your liability limits to at least 100/300/50 ($100,000 per person, $300,000 per accident, $50,000 property damage). The state minimum of 20/40/10 might keep you legal, but it won't keep you financially safe if you cause a serious accident. One trip to the emergency room can easily exceed $20,000, and you'd be personally liable for the rest.
Add uninsured motorist coverage even though it's not required in Hawaii. If someone without insurance hits you, this coverage protects you. Comprehensive and collision coverage are worth it unless you're driving an older car worth less than $3,000—in that case, you're better off pocketing the premium savings. For homeowners, consider increasing your dwelling coverage to account for Hawaii's high construction costs. Rebuilding after a major loss costs significantly more here than on the mainland due to shipping expenses and limited contractor availability.
Renters in Honolulu shouldn't skip renters insurance just because they don't own the building. For $15-30 per month, you get coverage for your belongings and liability protection if someone gets injured in your apartment. Given that Honolulu's average rent is over $2,000 per month, the cost of replacing everything you own after a fire or flood would be devastating without insurance. Plus, many landlords now require proof of renters insurance before you can move in.
Getting Started with Insurance in Honolulu
Start by getting quotes from at least three different sources: a local independent agent, a direct writer like GEICO or State Farm, and an online comparison site. Make sure you're comparing apples to apples—the same coverage limits, deductibles, and policy features. The cheapest quote isn't always the best deal if it comes with a $2,500 deductible instead of $500.
For homeowners, call the Hawaii Insurance Division at 808-586-2790 if you have questions about coverage requirements or want to verify an agent's license. Check your flood risk using FEMA's Flood Map Service Center—just enter your Honolulu address to see if you're in a high-risk zone. Even if you're not in a high-risk area, you can still buy flood insurance, and it's often cheaper than you'd expect when you're in a moderate or low-risk zone.
Review your policies annually, especially after major life changes like buying a new car, finishing a home renovation, or adding a teen driver to your auto policy. And if a hurricane is forecast to hit Honolulu, know that there's typically a 48-hour blackout period when carriers won't write new policies or increase coverage. Don't wait until a storm is bearing down on Oahu to realize you're underinsured. Set up your coverage now while the skies are clear, and you'll have one less thing to worry about when the next hurricane season arrives.
