Relating To Motor Vehicle Insurance.
The bill proposes specific amendments to Section 431:10c-301 of the Hawaii Revised Statutes, raising the liability coverage for bodily injury from $20,000 to $100,000 per person and increasing the aggregate limit from $40,000 to $200,000 per accident. Additionally, it raises property damage coverage from $10,000 to $20,000. These changes aim to improve the financial viability of recovery for accident victims and are seen as a necessary update to existing laws that are no longer sufficient in providing adequate protection.
Senate Bill 920 aims to address the inadequacy of minimum motor vehicle liability insurance in Hawaii, which has not been updated for nearly twenty-five years. Recognizing the impact of inflation and the economic repercussions of events such as the COVID-19 pandemic and the war in Ukraine, the bill seeks to increase required insurance minimums to better protect consumers and mitigate potential financial burdens on tort victims. The proposed changes intend to ensure that victims of accidents can recover more substantial damages from at-fault drivers.
While supporters of the bill argue that these increases are essential in light of rising costs and inflation, concerns may arise regarding the potential effects on insurance premiums. Opponents may argue that raising the minimum requirements could lead to higher costs for consumers, particularly those who are already struggling financially. Additionally, how insurance companies will adapt to these changes and the implications for drivers, especially those who are low-income, will be pivotal points in ongoing discussions about the bill.