Yes, Hawaii is a no-fault state for auto accidents. This means after an accident, your own car insurance company pays for your injuries, regardless of who caused the crash, up to your Personal Injury Protection (PIP) limit.
You can’t sue the other driver unless your injuries are serious or exceed a certain monetary threshold. This system aims to provide faster compensation and reduce lawsuits.
Key points about Hawaii’s no-fault system:
- Mandatory PIP: All drivers must carry Personal Injury Protection coverage.
- Limited Liability: You generally cannot sue unless injuries are severe or costly.
- Exceptions Exist: Lawsuits are allowed for serious injuries or high expenses.
- Fault Still Matters: Determining fault is crucial if you exceed your PIP limits or have a serious injury.
No-fault insurance pays benefits no matter who caused the crash, but those benefits are generally less than what you might recover through a lawsuit. For that reason, your attorney will likely pursue a path toward filing a lawsuit in the aftermath of your crash. Reach out to the personal injury lawyers of Olson & Sons to learn more.
What is No-Fault Insurance?
The purpose of Hawaii’s no-fault insurance system is to provide a simplified process for injury victims to seek compensation following a crash. Unlike with a civil lawsuit, you can receive benefits through a claim on your own no-fault insurance policy no matter who is responsible for your accident. This system often results in benefits much faster than a personal injury lawsuit would. Instead of waiting for months to resolve a claim with a hostile insurance company, your carrier will pay these benefits without taking into account who was at fault.
As is the case with liability insurance, these policies also carry minimum coverage levels under the law. Every driver must maintain this minimum level of motor vehicle insurance, although they have the option to purchase a policy with higher limits if they choose. The minimum coverage on no-fault insurance includes:
- Personal Injury Protection (PIP): $10,000 for the driver and passengers
- Bodily Injury Liability Coverage: $20,000 per person/$40,000 per accident
- Property Damage: $10,000 per accident
The reality of these policy minimums is that they rarely cover the full cost of an accident. If your damages are higher than the limits on your policy, you will be forced to cover the rest of the costs on your own.
What are the Downsides to No-Fault Coverage in Hawaii?
There are notable downsides that come with filing a no-fault insurance claim. Even though you might receive your benefits in short order, no-fault insurance will not pay for most of your losses, including certain types of medical treatment. This is because this type of insurance only pays for economic losses like lost wages or medical expenses.
No-fault insurance does not cover the subjective, non-economic losses that are a big part of most accident cases. The most common example of these damages is your physical pain and suffering. This could include more than just physical pain, including compensation for anxiety. Pain and suffering damages can make up a major portion of personal injury lawsuit compensation, but they are not covered by no-fault insurance at all.
Stepping Outside of the No-Fault System
The limitations of the no-fault insurance system can be frustrating for those injured in a car accident. The good news is that there are ways to step outside of this insurance system and pursue a personal injury claim against the negligent party. In fact, accidents involving serious injuries frequently are allowed to step outside of this system.
There are three different factors that could allow you to step outside of the no-fault system and sue the other driver in an accident. Only one of these factors needs to be present in your case in order for you to pursue legal action. These factors include:
- Your injuries are more than the limits on your Personal Injury Protection coverage
- Someone was killed in the accident
- Your injuries involve significant permanent loss
Your significant permanent loss could take many different forms. For example, you can step outside of the no-fault insurance system if you suffered significant permanent loss of either a body function or body part. Permanent disfigurement that leads to mental or emotional hardship could also qualify.
Our attorneys understand what it takes to step outside of the restrictive no-fault insurance system and pursue fair compensation through a civil lawsuit. If you are considering legal action following a crash, our team is here to help.
Understanding the Intricacies of Hawaii’s No-Fault Insurance System and Personal Injury Protection
Although Hawaii is a no-fault state, it’s important to understand that this doesn’t entirely eliminate the concept of fault in car accidents under Hawaii’s personal injury laws. While your own insurer covers your initial medical expenses and lost wages through PIP, determining fault becomes crucial if your damages exceed your PIP limits or meet the thresholds for stepping outside the no-fault system.
In these scenarios, the at-fault driver’s insurance company becomes liable for the damages exceeding your PIP coverage. This typically involves their bodily injury liability coverage, which has minimum limits of $20,000 per person and $40,000 per accident in Hawaii.
The Role of Fault in Serious Accidents
In cases involving serious injury or death, fault plays an even more significant role. Hawaii law allows victims of serious accidents to pursue a personal injury lawsuit against the at-fault driver. This means you can seek compensation for not only your medical bills, medical expenses, and lost wages but also for pain and suffering, emotional distress, and other non-economic damages.
Furthermore, if the at-fault driver’s insurance coverage is insufficient to cover your damages, you may be able to tap into your own underinsured motorist coverage, if you have it. This optional coverage can provide additional financial protection when the other driver’s insurance falls short.
The Importance of Legal Guidance
Navigating the complexities of Hawaii’s no-fault insurance system can be challenging, especially when dealing with the aftermath of a car accident. Consulting with an experienced insurance agent and personal injury attorney can help you understand your rights, assess your options, and build a strong case to maximize your compensation.
At Olson & Sons, we have a deep understanding of Hawaii law and a proven track record of helping car accident victims recover the compensation they deserve. We can investigate the accident, gather evidence, negotiate with insurance companies, and, if necessary, represent you in court.
Don’t Let the No-Fault System Limit Your Recovery
While Hawaii’s no-fault system aims to provide quick and efficient compensation for accident victims, it can also limit your ability to recover full damages, especially in cases of severe injury or when the at-fault driver lacks adequate insurance to cover your medical treatment. Don’t settle for less than you deserve. Contact Olson & Sons today for a free consultation and let us fight for your right to full and fair compensation.
Protecting Your Rights After a Car Accident in Hawaii
Whether you were injured in a minor collision or a major auto accident, understanding your rights and options under Hawaii’s no-fault system is crucial. Don’t navigate this complex process alone. Seek the guidance of an experienced attorney who can help you protect your interests and ensure you receive the compensation you need to recover and move forward.
At Olson & Sons, we are dedicated to providing compassionate and effective legal representation to car accident victims in Hawaii. Contact us today to schedule a free consultation and discuss your case with one of our experienced attorneys.
Remember, even though Hawaii is a no-fault state, you may still be able to hold the at-fault driver responsible for your injuries and losses. Don’t let the no-fault system limit your ability to recover the full compensation you deserve. Let Olson & Sons fight for your rights.
Talk to an Attorney About Insurance Coverage for your Car Accidents in Hawaii
You deserve to be compensated for your injuries after the car accidents, especially when you were not at fault. The no-fault insurance system might limit your path to recovery, but you could have other options in front of you.
Let the attorneys of Olson & Sons and an experienced insurance agent help you navigate the insurance system after a major vehicle collision. Reach out as soon as possible to schedule your free consultation with our firm.
FAQs About No-Fault Insurance in Hawaii
Does no-fault insurance cover property damage in Hawaii?
No, property damage resulting from a collision is covered by your collision coverage or the at-fault driver’s motor vehicle insurance property damage liability coverage.
What if the other driver doesn’t have enough coverage?
If the other driver’s insurance isn’t enough to cover your losses, your own underinsured motorist coverage could help fill the gap.
Can I sue the other driver even if Hawaii is a no-fault state?
Yes, in certain situations. You may be able to sue the other driver if your injuries exceed your PIP benefits, result in permanent impairment or disfigurement, or if someone was killed in the accident.
Should I talk to an attorney after a car accident in Hawaii?
It’s highly recommended. An attorney can help you understand your rights, assess your options, and guide you through the claims process.
How does no-fault insurance affect my ability to recover damages?
While no-fault insurance provides quick access to compensation for medical expenses and lost wages, it may not cover all your damages. An attorney can help you explore all avenues for recovering full compensation, including filing a personal injury lawsuit against the at-fault driver, if necessary.
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