Hawaii Vehicle Appraisal & Insurance Claim Resources

The Hawaii Insurance Division provides specific consumer guidance on automobile fire and storm damage claims, which addresses total-loss valuation. The Division advises policyholders to: work with the adjuster concerning the vehicle's pre-loss condition and mileage; research listings for similar vehicles in the area; compare the insurer's offer with that market research; and provide the research to the adjuster when value is disputed.

Hawaii's vehicle market has unique characteristics, including geographic isolation, the cost of importing vehicles from the mainland, and limited comparable vehicle availability in some cases. These factors may affect how comparable vehicle data is gathered and how Actual Cash Value (ACV) is determined for Hawaii vehicles. Appraisers and insurers operating in Hawaii should account for the Hawaii market when determining ACV.

Whether a Hawaii total-loss settlement must include Hawaii's General Excise Tax (GET) or other fees depends on the applicable policy and regulatory requirements. No specific Hawaii statute or regulation requiring GET inclusion in total-loss settlements has been independently verified for this page. Policyholders with questions about what their settlement should include should consult the applicable policy and a qualified attorney.

The Hawaii Insurance Division states in its consumer guidance: 'Your policy has an appraisal clause you can invoke ... if you reach an impasse.' This guidance recognizes that automobile insurance policies in Hawaii contain appraisal clauses and that policyholders may invoke the clause when they cannot resolve a valuation dispute with their insurer.

This guidance reflects a policy-based mechanism recognized by the Hawaii Insurance Division. It should not be read as establishing that a Hawaii statute independently creates a universal appraisal right separate from the policy. The availability of appraisal in a specific claim depends on the language of the applicable policy.

Under a typical automobile insurance appraisal clause, when the insurer and the insured disagree on the amount of a loss, either party may demand appraisal. Each party selects a competent, independent appraiser. The two appraisers attempt to agree on the amount of the loss. If they cannot agree, they select an umpire. Any two of the three must agree for the appraisal award to be binding.

Hawaii is a no-fault automobile insurance state under H.R.S. Chapter 431:10C. Under Hawaii's no-fault system, each insured's own insurer pays for certain economic losses — primarily medical expenses and lost wages — regardless of fault, up to the required minimum coverage limits.

Hawaii's no-fault system applies to personal-injury claims only. It does not apply to property-damage claims. Vehicle damage claims — including total-loss and diminished value claims — are handled separately under the applicable property-damage coverages or through third-party liability claims. The no-fault system should not be used as authority for property-damage valuation.

Diminished value claims in Hawaii depend on the type of claim and the applicable policy language. No Hawaii-specific appellate authority on diminished value has been independently verified for this page. Questions about diminished value recovery in a specific Hawaii claim should be directed to a qualified attorney familiar with Hawaii insurance and tort law.