Auto insurance is not a pleasant subject. We had to discuss the possibility of an auto accident, bodily injuries, or even fatality. Still, it is something that could not be ignored. If you do not have auto insurance, you might be forced to shell out huge sums if you get involved in an auto accident and you might even get financially ruined. Hence, you should know what types of auto insurance coverages would protect you from this risk. Normally, auto insurance could be divided into six major components, though several other minor types of coverages are offered by Hawaii insurance companies.
Bodily Injury Liability Coverage
Commonly known as liability coverage, this bodily injury liability coverage is mandatory in Hawaii by state law. According to the Hawaii statute, each person driving a vehicle should have a minimum bodily injury liability auto insurance policy limit of $20,000 per injured person and a minimum of $40,000 per accident. The minimum limit for property damage coverage is $10,000. This coverage is termed as 20/40/10.
In Hawaii, no fault systems had been adopted. Hence, your insurance company should honor your claims for bodily injury up to your policy limits, irrespective of who had been at fault in the auto accident. However, you would not lose some of the rights to file a lawsuit under this system. Hence, you should discuss with your insurance company about your rights when you buy the liability coverage.
Comprehensive Coverage
Would you be able to predict when a cyclone could hit your city and destroy your car? Or a stray fire leaves your car in ashes? What would happen if your car is stolen? These incidents might appear a bit far fetched but they do happen from time to time. They had been termed as ‘Acts of God’. When you buy comprehensive coverage, you would get refunded for the repairs or even replacement costs of the car up to the coverage limit.
Collision Coverage
When you have bodily injury liability coverage and comprehensive coverage, you get paid for your loss due to injuries or from unforeseen accidents. However, when you are involved in an accident, who would pay for the repair costs of the car or the replacement costs if the car is declared totaled in the accident? The collision coverage would be your savior under such circumstances. However, the collision coverage premiums are the steepest among the various coverages. As such, you should take the minimum possible coverage under this plan.
Medical Coverage
Liability coverage would protect only you and the other members listed in the policy. What would happen if one or more persons not covered by liability policy were traveling in your car and got injured in an accident? The medical coverage would come to the rescue and meet the medical bills of such persons.
Property Damage Coverage
If another person had been driving your car with your permission and damaged the property of someone else, this coverage would take care of the compensation that you would be required to shell out.
Uninsured and Underinsured Coverage
In an accident, it could so happen that another person without any insurance coverage was at fault. How would you make any claim against such a person? Sometimes, somebody might hit your vehicle and run away. What protection would you be able to get? The uninsured and underinsured policies take care of such situations and protect you from financial loss.
