Having auto insurance, in general, is useful if you get into a vehicle collision in Hawai`i with someone. Below, we explain why every car owner should purchase uninsured (UM) and underinsured (UIM) protection in the Aloha State.
Auto Insurance Laws in Hawai`i
Each state establishes auto insurance requirements. For example, some states use a no-fault system. Hawai`i has a no-fault system where a driver’s own insurance covers their accident-related costs without regard to who caused the collision.
Hawai`i’s no-fault system addresses injuries caused by car accidents. If a driver or their passengers are injured in an auto collision, the insurer should cover medical expenses up to a personal injury protection (PIP) limit.
As for PIP, it covers medical expenses like:
- Dental care
- Emergency room visits
- Surgical procedures
- Medical supplies
- In-home nursing care
However, if a victim’s costs exceed PIP insurance amounts, you may be entitled to file a claim with the other driver’s insurance. Generally, you can only do this when all of your coverage is exhausted or if that driver didn’t have coverage or too little of it. In lieu of or in addition to this, you may be able to tap into your UM or UIM coverage to cover your crash-related costs.
What is Uninsured Motorist Coverage?
Uninsured and underinsured may sound the same, but they are different. The former, UM, is also called UMBI, which stands for uninsured motorist bodily injury coverage.
While vehicle insurance is mandatory in Hawai`i, not all drivers follow the law and purchase it. UM insurance covers your expenses if the other driver is uninsured.
What is Underinsured Motorist Coverage?
UIM is insurance that protects you if a driver has insurance but doesn’t have enough insurance to cover your expenses. If a driver hits your vehicle and has a cheaper, less comprehensive insurance policy that doesn’t pay much, uninsured motorist coverage can help cover your expenses.
Stacking Insurance
In the case of auto insurance, you can stack coverage. Multiple insurance policies are useful in case your insurance company denies your claim, or your insurance does not pay enough for your accident-related expenses in Honolulu.
Benefits of Having UM and UIM Insurance Protection
In Hawai`i, uninsured and uninsured driver insurance will cover medical bills and other injury-related expenses, up to your insurance’s coverage limits. The higher your policy limits, the more the insurance will cover your medical expenses.
According to the Hawai`i Department of Commerce and Consumer Affairs, UM and UIM insurance covers such expenses as medical bills and lost wages if you cannot work because of accident injuries. Death benefits for your survivors have coverage ranging from $25,000 to $100,000 and funeral benefits are covered up to $2,000.
Representation in Hawai`i motor vehicle crash cases is essential to ensure you receive the compensation you deserve. Wayne Parsons Law Office is committed to this ideal of justice by representing your rights when dealing with insurers outside of court or trying your case in the courtroom. Contact us today if you require assistance in understanding the role UM and UIM coverage plays in your car crash case.