Commercial auto insurance in Hawaii

Any Hawaii company that uses vehicles for business purposes must insure them appropriately. Commercial auto insurance covers vehicles owned by your business.

Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses. A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.

Any vehicles you own solely for work purposes must be covered by a commercial auto policy, whether you own a landscaping pickup, a food truck, or a fleet of vehicles.

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto (HNOA) insurance. This liability policy covers accidents in personal, leased, and rented vehicles used for work purposes.

If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. It’s worth noting that this policy would not cover damage to the vehicle used by your business.

Your business could be in legal and financial jeopardy without commercial auto insurance coverage. Under Hawaii state law, all vehicles are required to carry auto liability insurance.

If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for any physical damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related costs.

Additionally, you could face severe penalties for not carrying commercial auto insurance. Driving without insurance could result in a fine of $500 for a first offense, and anywhere from $1,500 to $5,000 for a second offense. Your license and registration may also be revoked, and repeat offenses could lead to imprisonment.

All vehicles in the state of Hawaii are required to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use. Hawaii's insurance requirements are:

• $20,000 per person bodily injury liability
• $40,000 per accident bodily injury liability
• $10,000 per occurrence property damage liability
• $10,000 per person personal injury protection

Your insurance agency might recommend higher limits based on the types of vehicles you own and how they’re used.

In addition, personal injury protection (PIP) insurance is required in Hawaii. This add-on coverage helps provide medical payments coverage after a car accident, regardless of who was at fault, and is mandated as part of the state's minimum vehicle insurance requirements.

Semi-trucks, utility trailers, cargo trailers, and other vehicles with an with a State of Hawaii Department of Transportation serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.

You can see if your business needs these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.

Business owners from Honolulu to Hilo can use Insureon’s easy online application to compare insurance quotes from top-rated U.S. insurance companies.

You can also consult with a licensed insurance agent on your business insurance needs. Once you find the right policies for your small business, you can begin coverage in less than 24 hours.