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Best Cheap Gap Insurance Companies in Hawaii: Quotes, Discounts (2022)

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Lindsay Frankel

By: Lindsay Frankel

Edited by Tanveen Vohra | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Gap Insurance in Hawaii

Before you drive off into the Hawaiian sunset in your brand-new car, consider whether you might need gap insurance. New cars depreciate an average of 10 percent in the first month, and that can result in getting a lower payout from your insurance provider than what you owe on your auto loan. If you’re worried about being able to afford the difference, gap insurance can help. Your best bet is to use Insurify to find a low rate on a gap insurance policy.

See More: Compare Car Insurance

Best Companies for Gap Insurance in Hawaii

According to Insurify’s proprietary data, the following gap insurance provider is able to offer the cheapest average overall auto insurance rates to leasing drivers in Hawaii:

Insurance CompanyAverage Monthly Cost for Leased Cars in Hawaii
Farmers$154
Midvale Home & Auto$188
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

You can also get gap insurance from Progressive in Hawaii.

See More: Cheap Car Insurance in Hawaii

What is gap insurance?

Gap insurance, or guaranteed asset protection, covers the difference between the actual cash value (ACV) of your car after depreciation and the amount you owe on your car loan. If your car is declared a total loss and your insurance reimbursement won’t cover the remaining loan balance, gap insurance will provide an additional payout you can use to repay the loan.

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Who should buy gap insurance in Hawaii?

People who made a small down payment on a new car in Hawaii or took out an auto loan with a long term should buy gap insurance to protect themselves from unaffordable loan payments after an accident. You can usually only add gap insurance to your Hawaii car insurance policy if your vehicle is less than two or three years old. It’s not intended for used cars.

Hawaii Gap Insurance Laws

State law doesn’t require any driver to carry gap insurance in Hawaii, and insurance companies are not required to offer the coverage. The only car insurance coverages that are required in the state are personal injury protection and liability insurance, which includes bodily injury liability and property damage liability insurance.

However, many lenders in Hawaii may require borrowers to purchase gap coverage as a condition of the loan or lease for a new vehicle. If your lender requires it, your best bet is to purchase it as an add-on to your insurance policy.

How much gap insurance do I need in Hawaii?

Gap insurance doesn’t come with coverage limits—you’ll just need to choose whether to buy it or forgo it. There’s also no need to purchase gap insurance for the entire life of your loan. It’s only necessary to pay for gap insurance during the time your insurance payout would not cover your loan balance. And since it’s optional coverage, you can cancel it at any time.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Hawaii

Here’s an example of how gap insurance works in Hawaii:

  1. You purchase a new $30,000 vehicle with a $28,000 car loan.
  2. You get an insurance policy with collision and comprehensive coverage and a $500 deductible.
  3. Your insurance agent declares the vehicle a total loss after you are in a car accident. Your auto insurance coverage only pays you the value of the car, which is now $26,000, minus your deductible.
  4. Without gap insurance, you’d still owe your lender $2,500 after using up the funds provided by your insurance company. With gap insurance, you’d only owe your $500 deductible.

How Much Gap Insurance Costs in Hawaii

How much is gap insurance in Hawaii?

The average total cost to insure a leased vehicle in Hawaii is $138 a month. However, what you pay for car insurance will depend on a variety of factors, such as your age and your driving record.

Gap insurance only adds about $20 to your annual premium, according to the Insurance Information Institute. However, purchasing it directly from the dealership or your lender can end up costing hundreds of dollars, even if it is wrapped up into the loan.

Luckily, several Hawaii car insurance companies offer gap insurance, and leasing drivers only pay an average of $138 per month for full coverage. If you want to stay protected on the road for cheap, the best way to get gap insurance is through your insurance company.

See More: Average Cost of Car Insurance in Hawaii

How to Buy Gap Insurance in Hawaii

Since gap insurance is relatively inexpensive compared to comprehensive and collision coverage, it’s best to check your overall insurance rates first with Insurify. You’ll only need to enter your information once, and our artificial intelligence technology will pull quotes from multiple providers in one spot, so you can compare them apples-to-apples.

From there, compare the companies that offer the lowest rates and also provide gap insurance. You should also check to see which companies have the best discounts, hold the highest financial strength ratings, and have the most glowing customer reviews. You’ll find some of the best companies for gap insurance in Hawaii below.

Frequently Asked Questions: Gap Insurance in Hawaii

  • No. There is no legal requirement to carry gap insurance in Hawaii, but it can help protect your finances if you bought a new car with a small down payment. Many lenders in Hawaii will also require you to carry gap insurance as a condition of your loan or lease.

  • If you bought gap insurance from the dealership and want to cancel it, you’ll be able to receive the unused portion reimbursed. However, if you buy gap insurance for a few years and later pay off your car, you won’t receive your paid premiums returned.

  • The best way to get a good deal on car insurance in Hawaii is to use Insurify to compare customized quotes from multiple insurance providers in one spot. It’s quick, easy, and free to find the lowest rates. From there, you’ll just need to identify which companies offer gap insurance and sign up for a policy.

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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Lindsay Frankel
Lindsay Frankel

Insurance Writer

Lindsay Frankel is a content writer specializing in personal finance and auto insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz.

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