Auto premiums down 35 percent in Hawai’i State Insurance Commissioner Wayne Metcalf encourages those looking for car insurance or workers’ compensation insurance to shop around, because increased competition and other factors have made it a buyers’ market in Hawai’i. AIG,
Auto premiums down 35 percent in Hawai’i
State Insurance Commissioner Wayne Metcalf encourages those looking for car insurance or workers’ compensation insurance to shop around, because increased competition and other factors have made it a buyers’ market in Hawai’i.
AIG, which has one of the lowest car-insurance rates in Hawai’i, recently won state approval to raise its rates about 8 percent. But State Farm recently lowered its car-insurance rates, and another company is proposing a rate reduction, as well, he said.
“The trend in auto is still kind of downward” in terms of rates to consumers, said Metcalf, whose insurance division is under the state Department of Commerce and Consumer Affairs.
Mainland rates for car insurance have been rising, though in Hawai’i, rates have moved down 35 percent for state-mandated insurance coverage, he said. The number of uninsured motorists has declined, as well.
Although three companies which held a combined 10 percent of the local market recently quit writing workers’ compensation insurance policies, the cost of a policy has actually decreased over the last several years, he said.
A strong state economy, insurance reforms passed in 1995, increased carrier competition and workplace safety improvements have combined to help lower the cost of workers’ compensation premiums 70 percent over the last six years, said Metcalf.
“The trend in workers’ comp is that it’s actually pretty stable,” Metcalf said of premiums. The downward trend in recent rates has meant lower overhead for small business owners, he commented.
“Cost reductions have aided in Hawaii’s economic improvements,” he said.
In car and workers’ compensation insurance, claims are processed and settled quickly in Hawai’i, according to Metcalf.
Workers’ compensation insurance is required for companies with employees to pay medical bills and offer income-interruption pay for those injured while on the job.
Mandatory minimum coverage of car insurance is required by state law for all registered vehicles.
Staff Writer Paul C. Curtis can be reached at mailto:pcurtis@pulitzer.net or 245-3681 (ext. 224).
