Hawai'i auto insurance premiums fall 23 percent
By Deborah Adamson
Advertiser Staff Writer
Auto insurance premiums in Hawai'i fell 23 percent during a five-year period, the biggest drop in the nation, the state Insurance Division said yesterday.
From 1997 to 2001 — the most recent data available — the state's average annual premium per vehicle fell to $705.10 from $912.36, according to the National Association of Insurance Commissioners. The national average rose 2 percent, to $717.70.
Hawai'i also had the lowest average premiums for comprehensive coverage, the optional insurance that covers loss to the vehicle not resulting from a collision: $90.86, compared with $133.49 nationwide.
Not all drivers have noticed a decline. Honolulu hairdresser Cleo Lee said she didn't know if her premiums had gone up or down, but Hawai'i residents still pay "quite a bit."
The decline in premiums put Hawai'i at 21st most expensive for auto premiums, down from No. 4 in 1997. In 2000, Hawai'i was 17th.
"There were a number of reforms in 1997 and 1998 that enabled us to bring down the cost of insurance," said J.P. Schmidt, Hawai'i insurance commissioner.
For example, the state limited the number of chiropractic visits for people hurt in crashes. It dropped a requirement that insurers offer the "wage loss" option, which covers pay lost because of an accident.
The idea was to get rid of "unduly intrusive" rules and regulations, Schmidt said.
The state also reviewed premium increases to make sure they weren't excessive, he said. "The key is to do it in a reasonable and efficient manner."
Hawai'i's standing is partly a result of premium rate increases by other states, according to the survey. Thirty-nine states raised their average premium in the period.
Massachusetts rates rose 16.6 percent, to an average $936.01 per motorist. Vermont came in second with a 16 percent gain to $602.52. Montana rounded out the top three at $572.06, a 14.2 percent increase.
Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.
