Total loss laws in Hawaii

When is a car totaled in Hawaii?

Short answer: Hawaii sets no percentage threshold for insurer-paid claims (HRS s. 286-2), so the total-loss decision is generally the insurer's under your policy.

No insurer total-loss percentage was found. HRS s. 286-2 defines a 'rebuilt vehicle' as one an insurer declared a total loss that has been repaired for road use, and says a vehicle is a total loss for this purpose only if there is material damage (including flood damage) to its electronics, frame, unitized structure or suspension system and the projected repair cost exceeds its market value at the time of the incident. This is a title-branding definition, not a rule on when an insurer must total a car.

Source: HRS s. 286-2 ('rebuilt vehicle'), as shown on FindLaw (current as of Jan. 1, 2025)

Many online tables mix up title-branding rules with the insurer's own decision. Compare the total loss threshold in every state.

Does insurance pay sales tax on a total loss in Hawaii?

Short answer: Yes, once you buy a replacement. Hawaii insurers must pay back the general excise tax and title fees if you buy a replacement within 30 days and send proof within 33 days (HRS s. 431:10C-312). The insurer may also pay it up front with the settlement.

When a replacement vehicle is provided, the insurer pays the applicable Hawaii general excise tax (GET) and certificate of ownership fee. On a cash settlement, if the insured buys a vehicle within 30 days of receiving the settlement, the insurer must reimburse the GET and certificate of ownership fee, capped at the amount payable on the value of the totaled vehicle (or only the tax and fee actually incurred if the purchase costs less). The insurer need not reimburse if the insured does not submit proof of purchase and payment within 33 days after receiving the settlement. The insurer may instead pay the GET and fee directly at settlement, and it must give written notice of the procedure (and any reimbursement form) at settlement. For a third-party total loss, the at-fault driver's insurer must likewise pay the GET and certificate of ownership fee (subject to comparative-negligence reduction under HRS s. 663-31 and the property damage liability limit), with the same 33-day documentation rule or direct payment at settlement. Registration fees are not mentioned.

Source: HRS s. 431:10C-312 (first party); HRS s. 431:10C-122 (third party)

Tax on a replacement car in Hawaii

4% general excise tax (GET) imposed on the dealer, who may pass it on. All four counties add a 0.5% surcharge (to 2030), so the maximum visible pass-on is 4.712%. There is no GET on private-party sales.

Source: https://tax.hawaii.gov/geninfo/countysurcharge/

See the sales tax and fee rule in every state.

How must the insurer value your car in Hawaii?

If the policy settles total losses on actual cash value or replacement, the insurer must use either the replacement method (s. 431:10C-310) or the cash-settlement method (s. 431:10C-311). Cash settlement: the payment must be based on retail value from sources that reflect market value. Dealer quotes and newspaper ads may be used if the vehicle is not in the insurer's usual source, but neither may be the only source, and the VIN of any quoted dealer vehicle goes in the file. Otherwise estimates from at least three licensed dealers may be used, accounting for pre-loss condition. Documentation of how market value was determined must be kept in the claim file. Deductions for 'get ready to go' and dealer-prep charges are prohibited. Replacement: the file must describe the replacement vehicle (VIN, options). Replacements from the current model year and the three previous years must be bought through licensed dealers unless the insured waives this in writing. If the insured rejects the replacement, the insurer owes only what the replacement would have cost.

Source: HRS ss. 431:10C-309, 431:10C-310, 431:10C-311(a), (c)

To check the numbers in your own report, read the CCC valuation report, line by line and how projected sold and typical negotiation deductions work.

How long does the insurer have to pay a total loss in Hawaii?

Short answer: Under Hawaii rules, payment is due within 30 days after liability is affirmed (HRS s. 431:13-103(a)(11)(B), (E), (F), (G)).

Hawaii's unfair claim practices statute says the insurer must respond to claim communications with reasonable promptness, 'in no case more than fifteen working days' (s. 431:13-103(a)(11)(B)). It must affirm or deny coverage within a reasonable time after proof of loss is complete (no fixed number of days) (E). It must offer payment within 30 calendar days of affirming liability if the amount is determined and undisputed (F). It must give a reasonable written explanation for the delay on any claim still unresolved 30 calendar days after it was reported (G).

Source: HRS s. 431:13-103(a)(11)(B), (E), (F), (G)

Compare claim deadlines in every state.

Can you negotiate a total loss offer in Hawaii?

Short answer: Yes. You can reject the offer in writing, ask for the full valuation report and the reason for each deduction, and send your own evidence. Hawaii also lets you ask the insurer to reopen the claim within 30 days of receiving the settlement if you cannot buy a comparable car for the amount paid (HRS s. 431:10C-311(b)). The Hawaii Department of Commerce and Consumer Affairs, Insurance Division takes complaints about claim handling.

Yes. If within 30 days of receiving the settlement the insured cannot buy a comparable vehicle at the insurer's value but has found a more expensive one, the insurer must do one of these: help locate a comparable at its value through licensed dealers; pay the difference or arrange the purchase; or conclude the settlement through the policy's appraisal clause, which binds both sides but does not waive other rights. At settlement it must give written notice that it will reopen the claim (HRS s. 431:10C-311(b)). The owner can also send a written dispute, talk to an Insurance Division investigator or file a complaint, or sue in small claims or district court.

1. Ask the adjuster in writing for the complete valuation report and the list of comparable vehicles.
2. Check it line by line: negotiation deductions, condition ratings, comparables, tax and fees. How to read the report.
3. Send a written rebuttal with your evidence and a specific number. How to dispute a total loss valuation.
4. If you still disagree on a claim under your own policy, consider the appraisal clause.
5. If the insurer does not follow the rules above, file a complaint with the state.

How long do you have to sue over a totaled car in Hawaii?

Short answer: Generally 2 years to sue for damage to your car (HRS s. 657-7). That is the shorter of two possible deadlines in state law. Your policy may set a shorter limit for suing your own insurer.

Property damage claims in Hawaii generally must be filed within 2 years. Your policy may set a shorter deadline for suing your own insurer; check its "legal action against us" clause.

Source: HRS s. 657-7 (actions for damage or injury to persons or property: 2 years after accrual). For tort suits arising out of a motor vehicle accident, HRS s. 431:10C-315(b) sets the later of 2 years after the accident or 2 years after the last payment of motor vehicle insurance (PIP) or other listed benefits; it is not limited to injury claims on its face. Use 2 years from the accident as the safe deadline.

How to file an insurance complaint in Hawaii

Short answer: File a free complaint with the Hawaii Department of Commerce and Consumer Affairs, Insurance Division online. It asks the insurer for a written response, but it cannot set the amount you are owed.