Relating To Motor Vehicle Insurance.
The bill modifies Section 431:10C-301 of the Hawaii Revised Statutes, scaling the minimum liability coverage from $20,000 to $50,000 per person for bodily injuries and from $10,000 to $20,000 for property damage. It also sets future increments that will increase these minimums further by January 1, 2027, thereby ensuring that the liability coverage keeps pace with inflation. This adjustment aims to provide greater security for accident victims, ensuring they are compensated adequately and reducing the economic burden of out-of-pocket expenses in the event of incidents involving uninsured or underinsured motorists.
Senate Bill 976 addresses the urgent need to amend Hawaii's motor vehicle insurance liability minimums, which have not been updated in over twenty-five years. In response to rising inflation attributable to the ongoing repercussions of the COVID-19 pandemic and geopolitical tensions, the bill aims to increase the minimum required liability coverage for motor vehicle insurance policies in the state. The proposed amendments significantly raise the thresholds for bodily injury and property damage coverage, reflecting current economic realities and the need for better protection for victims of vehicular accidents.
While proponents of SB976 advocate for these changes as a necessary step to protect residents, critics raise concerns about the potential impact on insurance rates. There are apprehensions that increased liability limits may lead to higher premiums for drivers across the state, which could disproportionately affect lower-income individuals. As the discussion unfolds, the balance between enhancing victim protections and maintaining affordable insurance rates will continue to be a pivotal point of contention.