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Hawaii auto insurers can no longer use your ZIP code to set your premium. The Hawaii Insurance Division ordered the change on January 16, 2026, with refiled rates effective October 1, 2026. Here is what the ban means for your rate at renewal and what you can do now.

Key Takeaway: The Hawaii Insurance Division issued Memorandum 2026-2PC on January 16, 2026, prohibiting the use of ZIP code-based rating factors for motor vehicle insurance. Insurers had until June 30, 2026, to refile their rates without ZIP code factors, and the changes apply to new and renewal policies beginning October 1, 2026. County-based rating factors are still permitted if they are actuarially supported and approved. Drivers may see premium changes at renewal — but not necessarily decreases. The effect depends on how each insurer redistributes its rate level across the remaining approved factors. The ban does not change Hawaii’s minimum liability requirements, which increased on January 1, 2026.

Key Findings

  • Effective date: The ZIP code ban applies to new and renewal policies starting October 1, 2026.
  • Refiling deadline: Insurers had until June 30, 2026, to refile rates without ZIP code factors.
  • County rating remains: County-based factors are still permitted if actuarially supported and approved.

What the Hawaii ZIP code ban changes for your premium

Hawaii auto insurers must remove ZIP code as a rating factor and refile their rates without it. The Insurance Division found that ZIP code boundaries are designed for postal delivery, not insurance risk, and that using them can produce premium differences between similarly situated drivers without a credible actuarial relationship to expected losses. The change does not mean every driver’s premium goes down. It means the portion of your rate that was based on your ZIP code must be removed and replaced with rating factors the Division accepts.

Insurers had until June 30, 2026, to submit refiled rates through SERFF, the electronic rate-and-form filing system. Those refiled rates apply to new policies issued on or after October 1, 2026, and to existing policies when they renew on or after that date. Policies that renewed before October 1, 2026, continued under the rates in effect at the time of renewal.

The memorandum cites Hawaii Revised Statutes § 431:14-103(a)(1), which prohibits unfairly discriminatory rates. Where rate differentials are not reasonably related to demonstrable differences in risk, the Division considers the resulting rates not actuarially justifiable. The memorandum does not cite a specific consumer complaint; it states the Division conducted “further review of current motor vehicle insurance rating practices.”

Jan 16Memorandum 2026-2PC issued
Jun 30Refiling deadline (passed)
Oct 1Effective for new and renewal policies
Practical note: The ban applies to private passenger auto insurance, not to commercial auto or other lines. County-based rating factors are still allowed — the memorandum expressly permits them if they are filed, actuarially supported, and approved.

Who is affected by the ban and what are the key dates?

All Hawaii drivers with private passenger auto insurance are potentially affected, because the memorandum applies to every motor vehicle insurer operating in the state. The change applies to new policies issued on or after October 1, 2026, and to existing policies when they renew on or after that date. Policies that renewed before October 1, 2026, were not affected at that renewal.

Whether your premium goes up, goes down, or stays roughly the same depends on how your insurer refiles its rates and how your profile compares to other drivers in the state. The ban removes one factor — ZIP code — but insurers may adjust other factors to maintain their overall rate level.

What changed
ZIP code factors removed Oct 1, 2026
Memorandum 2026-2PC, Jan 16, 2026
Insurers may not use ZIP code to rate, underwrite, or price motor vehicle insurance. This applies to new and renewal policies beginning October 1, 2026.
What remains
County-based factors still allowed Permitted
Memorandum 2026-2PC, Jan 16, 2026
Insurers may continue to differentiate rates by county if the factors are filed, actuarially supported, and approved in accordance with Hawaii law.

Potential increases

  • Drivers in previously low-rate ZIP codes could see their premiums adjust upward if their insurer redistributes the rate level across remaining approved factors.
  • Overall rate level unchanged — the ban does not reduce the total premium the insurer collects; it changes how the premium is distributed among drivers.

Potential relief

  • Drivers in previously high-rate ZIP codes could see relief if the ZIP code factor was pushing their premium above the level justified by other approved factors.
  • Counties still differentiate — drivers in higher-cost counties may still pay more than drivers in lower-cost counties, if the county factor is actuarially supported.

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What Hawaii drivers should do now

Start by checking your current policy and your renewal notice. The ban on ZIP code rating does not change Hawaii’s minimum liability requirements, which increased on January 1, 2026, to $40,000 per person and $80,000 per accident for bodily injury and $20,000 for property damage. The minimum personal injury protection (PIP) benefit remains $10,000 per person. Review your coverage limits at the same time you review your premium.

Check your policy declarations page
Confirm whether your rate used a ZIP code factor
The factor may not be itemized on your declarations page, but your insurer can confirm whether your ZIP code was used in rating. If you are not sure, call your insurer and ask directly.
Compare your renewal premium
See whether your rate changed after October 1, 2026
When you receive your renewal notice on or after October 1, 2026, compare the new premium to your previous premium. If the change is significant, ask your insurer for a written explanation of the rating factors used.
Contact the Hawaii Insurance Division if needed
File a complaint if you believe ZIP code rating is still being used
The Division’s contact information is available at cca.hawaii.gov/ins. You can file a complaint if you believe your insurer is still using a ZIP code-based factor after October 1, 2026.
Ask new insurers about their refiled rates
Confirm the rate you are quoted reflects the ban
If you are shopping for a new policy, ask each insurer whether their filed rates for new business effective on or after October 1, 2026, have removed ZIP code-based factors. Insurers that have not yet refiled may still be using the old factors for policies written before the effective date.
Review your coverage limits
The ban does not change minimum requirements
Hawaii’s minimum liability requirements increased on January 1, 2026. The ZIP code ban does not affect those minimums. Check that your coverage still meets your needs and the state’s requirements.

Frequently Asked Questions About the Hawaii ZIP Code Ban

Does the ZIP code ban mean my auto insurance premium will go down?

Not necessarily. The ban removes ZIP code as a rating factor, but insurers may adjust other factors to maintain their overall rate level. Your premium could decrease, increase, or stay roughly the same, depending on how your insurer refiles its rates and how your profile compares to other drivers in the state.

Can my insurer still use my county to set my rate?

Yes. The memorandum expressly permits county-based rating factors, provided they are filed, actuarially supported, and approved in accordance with Hawaii law.

What if my policy renewed before October 1, 2026?

If your policy renewed before October 1, 2026, your renewal was processed under the rates in effect at that time. The ZIP code ban applies to new and renewal policies beginning on or after October 1, 2026.

The bottom line for Hawaii drivers

Starting October 1, 2026, Hawaii auto insurers must stop using your ZIP code to set your premium. Your rate may change at renewal, but the change comes from removing the ZIP code factor and redistributing the rate across other approved factors. The ban does not guarantee a decrease, and it does not change Hawaii’s minimum coverage requirements.

Check your renewal notice, ask your insurer for a written explanation if the change is significant, and contact the Hawaii Insurance Division if you believe ZIP code rating is still being used.

How We Verified This

We read Commissioner’s Memorandum 2026-2PC, issued by Hawaii Insurance Commissioner Scott K. Saiki on January 16, 2026, and posted on the Hawaii Department of Commerce and Consumer Affairs website. We also reviewed the Division’s FAQ on auto insurance minimum limits, dated January 2026, which documents the 2026 increase. The memorandum is the primary source for the ban, the refiling deadline, and the effective date. No fact in this article relies on a secondary source alone.

Disclaimer: This article is for informational purposes only and is not professional insurance, legal or financial advice. Rates, rules and deadlines vary by insurer, state and driver, and can change. Confirm details with a licensed agent, your insurer or your state department of insurance before making a coverage decision.

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