Relating To Motor Vehicle Insurance.
The proposed changes would significantly raise the minimum required liability coverage for motor vehicle insurance policies. This adjustment includes increasing individual limits for bodily injury from $20,000 to $100,000 and aggregate accident limits from $40,000 to $200,000. Additionally, property damage coverage requirements would increase from $10,000 to $40,000. These adjustments seek to provide better financial protection for individuals involved in motor vehicle accidents, thereby supporting victims in recovery from damages incurred.
House Bill 76 is a legislative measure aimed at amending the minimum liability insurance coverage requirements for motor vehicle insurance policies in Hawaii. The bill addresses the inadequacies of the current coverage limits, which have remained unchanged since 1998, nearly twenty-five years ago. The rising inflation, exacerbated by the COVID-19 pandemic, has motivated the legislature to act, recognizing that the existing coverage amounts are insufficient and detrimental to tort victims throughout the state. Thus, the primary goal of HB76 is to increase the minimum amounts of liability coverage that insurers must offer through new legislation.
While supporters of the bill argue it is a necessary reform for protecting consumers and adapting to modern economic conditions, there may be concerns regarding the potential increase in insurance premiums. Insurers could respond to the mandated higher coverage limits by raising premiums, which might affect the affordability of motor vehicle insurance for some residents. Critics may express that the legislative changes could result in unintended financial burdens on drivers, particularly affecting low-income individuals who already struggle with insurance costs.