Yes, you do need insurance even in paradise. AIG Hawaii Insurance is a leading provider of personal automobile insurance in the island state. It insures more than 100,000 vehicles and has more than 75,000 policyholders. Formerly a subsidiary of insurance giant American International Group, the company was sold to Farmer's Group in 2009 along with 21st Century Insurance. AIG Hawaii underwrites business auto insurance, as well as homeowners, motorcycle, personal umbrella insurance, temporary disability, and worker's compensation insurance. AIG Hawaii has offices located on all the major Hawaiian Islands.