Full coverage for Hawaii auto insurance customers means buying liability coverage, as well as collision and comprehensive protection. Under state law, all drivers must have at least the minimum level of liability coverage in place. This part of a car insurance policy is used to pay for injuries sustained by the occupants of another vehicle as the result of a motor vehicle accident.
Collision coverage pays for the cost of repairing a policyholder’s own vehicle when it is damaged in an accident. If the vehicle cannot be repaired, the policy pays out an amount equal to its cash value, less the deductible the customer has chosen. The deductible is the amount the policyholder agrees to pay out of his or her own pocket before the car insurance company will pay out any money.
Comprehensive coverage protects a policyholder from a loss due to other factors other than colliding with another vehicle or a piece of property, such as a fence, sign post or mailbox. It pays out when the car is damaged because of hail, flooding or an act of vandalism. If the policyholder’s vehicle is stolen, the comprehensive coverage will pay a benefit.
When a car is being financed, the lender will probably insist that the borrower have collision and comprehensive coverage in place to protect its interests. Once the vehicle has been paid for in full, having full coverage for Hawaii auto insurance may no longer be necessary.