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Hawaii is one of a small band of states that have "no fault" insurance. The "no fault" should have an asterisk next to it though, considering it is only "no fault" when it comes to bodily injury.

If you smash up another driver's car and are found to be the cause of the accident, then your insurance company covers the costs of all repairs. The reverse is true if your vehicle is damaged by a driver deemed responsible for the melee; that driver's insurance coverage (assuming they have insurance) will cover the cost of your repairs.

But regardless of the "no fault" aspect of bodily injury and the "at fault" elements of property and vehicle damage, there is one thing for certain across the board. You need insurance to drive in Hawaii and will need to show proof of having coverage before you register any vehicle in the state.

Minimum Liability

All states have a certain minimum amount that each driver must be covered for on a vehicle that they operate on the roads and highways. There are almost no exceptions to the rule, and the penalties for either not having insurance or not having enough are harsh on the wallet. Hawaii law sets the minimum levels of liability coverage that motorists must maintain:

• $20,000 per person for bodily injury

• $40,000 per accident for bodily injury

• $10,000 per accident for property damage

• $10,000 personal injury protection (PIP)

Automotive liability insurance is essentially the monetary safety net that you need if you have been held legally at fault for an accident. In most instances, you will see the above figures presented by insurance companies as 20/40/10/10. When you break down the numbers, it looks like this:

• The first number is what insurance will pay out per person injured in an accident.

• The second number is tied into the first and reflects the total injury payout available per accident. Thus, if an accident that you caused entailed two or more parties facing serious medical costs, a claims battle may ensue between those parties. Ultimately, if the $40,000 does not foot the entire bill, you may be sued in court for more money.

• The third number refers solely to property damage and how much per single accident the insurance will cover. This type of coverage is for damage caused on a range of property types, from another driver's dented vehicle to houses, garages, light poles, and buildings.

• The last number is something you only witness in no-fault states. It is the amount of minimum liability you need to cover injuries to you and any passengers in your vehicle.

Where's the No Fault?

So now you are probably wondering why you need so much bodily injury coverage for the other driver if bodily injury in the state is considered "no fault" and that driver has insurance for his own injuries. This is where the system has become tricky and has even caused some "no fault" states to return to the tort system of insurance.

In theory, one of the concepts behind no-fault insurance is to prevent you as a driver from being sued for things like lost wages and pain and suffering. This also means that in most cases it prevents you as a driver from suing another individual. But this only holds so much weight.

There are two threshold levels that no-fault systems are set up around. The first is what is known as a verbal threshold. By definition, this means that the state defines the level of serious injury that must be met or surpassed before an individual can sue for more damages.

The second standard, and the one implemented in Hawaii, is called a monetary threshold. By definition, this means that the state sets a certain monetary amount that needs to be spent by the victim in order for them to try and retrieve more damages from an insurance company.

Hawaii has a monetary threshold of $5,000. That means that if the medical bills you incur exceed this amount, you may be able to file a claim for damages against the other driver if they are deemed at fault in the accident. So much for no-fault; once you move into the court system or exceed the monetary threshold, then fault will need to be established.

This is where it becomes almost imperative that you consult with a personal injury lawyer if you're injured in an accident. Most likely, they will have an excellent understanding of how the state's no-fault laws work and how best to approach issues of lost wages and pain and suffering.

Often when you get to this point in the no-fault system, a small battle breaks out between you and the other driver's insurance company. Settlements can be delayed, and claims can be drawn out for years. A personal injury attorney can help you through this process.

Other Types of Coverage

There are plenty of insurance policy upgrades available, including:

Collision: Having this coverage protects your vehicle when it is damaged in a collision with any type of object or in an accident with another automobile. If a vehicle is financed, most likely the bank or lending company will require you to carry this type of insurance to essentially protect its property while it is in your possession.

Comprehensive: This type of insurance covers the loss of or damage to your vehicle due to theft or damage incurred without a collision (i.e. vandalism or natural disasters like flood, hail, and earthquakes).

Uninsured motorists insurance: (UMI) This coverage is becoming more and more popular as people begin to protect themselves from being stuck with exorbitant medical bills due to injury in an accident where the other driver is not insured. The coverage is also available for property damage.

Although Hawaii's legally required coverage amounts are less, insurance companies tend to recommend that you have at least $100,000 to $300,000 in total coverage.

For more information on Hawaii's insurance requirements, rates, and carriers, visit the state's consumer information Web site.