Iowa Auto Insurance Guide

Iowa Minimum Insurance Requirements

The state of Iowa requires drivers to maintain auto insurance, and they must buy insurance on a vehicle before it can be registered. The minimum liability coverage required by law in IA is $20,000 of bodily injury to, or death of, one person in one accident; $40,000 of bodily injury or death to two or more people in a single accident, and $15,000 of coverage for property damage.

Other coverages are available in Iowa, like comprehensive or collision but not required by state law. They may be required by your lienholder, however.

Iowa drivers must always have proof of insurance in the vehicle.

Key Takeaways

In Iowa, drivers must be insured. They must always carry proof of insurance in the car. The minimum auto insurance requirements are:

• $20,000 for injury to one person
• $40,000 for injury to more than one person
• $15,000 property damage coverage

Introduction to Iowa Auto Insurance Requirements

You may hear Iowa minimum auto insurance requirements described as “20/40/15.” These numbers refer to your minimum liability coverage.

When talking about insurance, “liability” means financial responsibility. In other words, if you cause damage to other people or their property with your vehicle, it is your responsibility to pay for medical attention or repair damaged property.

No law in Iowa requires drivers to maintain comprehensive coverage or collision. However, if you are making a car payment to a bank, or if there are other liens on the vehicle, the lienholder can make you buy those additional coverages.

IA Auto Insurance Coverage Descriptions

Iowa drivers must have basic liability insurance. But there are other types of auto insurance coverage available, and your lienholder may require you to carry them. You may also decide they are valuable, because they help to pay for damage to your vehicle or theft.

• Collision coverage pays for damage to your vehicle if you collide with anything, like another car, a wall, a structure, etc.
• Comprehensive coverage pays for other types of damage, like hailstorms, theft, fire and so on.
• Glass coverage helps pay for expensive windshields.
• And mechanical breakdown coverage may pay for mechanical issues if your vehicle is no longer under warranty.

Other popular options include rental car reimbursement and roadside assistance.

Iowa Minimum Auto Insurance Requirements

$20,000 Bodily Injury to Others

If you’re responsible for injuring one person, this coverage helps to pay medical costs and more.

$40,000 Bodily Injury Per Accident for More Than One Person

If you’re responsible for injuring several people, the insurer will pay up to $40,000 for medical costs and more.

$15,000 Property Damage

Most vehicle accidents cause some amount of property damage, whether it’s to other vehicles on the road, real estate, or another person’s belongings. This coverage pays for these damages. If these damages are more than $15,000, you may need to pay more. This is an important point, because the value of vehicles has skyrocketed in recent years.

New Driving Laws in Iowa

In 2021, Iowa launched a new “Super Speeder Bill.” In short, if you cause a fatal accident while driving more than 25 mph above the speed limit, you will be charged with a Class C felony. If you injure someone while driving 25 mph over the speed limit, you will be charged with a Class D felony.

Felonies are serious charges. They can affect your future ability to find rental housing, find jobs, vote, and own guns.

Penalties for Failure to Carry Iowa Auto Insurance

Iowa lawmakers take auto insurance very seriously. If you’re caught driving without insurance in IA, expect to pay a $250 fine. If you are unable to pay that fine, a judge might allow you to complete some community service, instead.

Repeat offenders face stiffer penalties. Law enforcement can impound your vehicle or take your tags. They may pull your registration and force you to carry additional SR-22 insurance in the future.

How to Get the Cheapest Iowa Auto Insurance Policy

Iowa insurers are known to gradually increase your rates over time. If you need to save money on auto insurance, you should shop around every few years. Insurers will usually offer safe drivers low rates to lure new business.

Other ways to save money on Iowa auto insurance are:

• Increase your deductibles if you have full coverage: The higher your deductible, the less your insurance will cost. This doesn’t apply to liability-only policies, and your lienholder may require you to carry a lower deductible. Remember to choose a deductible you are comfortable paying. If you don’t keep $5,000 in the bank, don’t select a $5,000 deductible.
• Cut down on extra coverage: For instance, if you own several vehicles, you may not need rental car coverage.
• Seek a “bundle”: Insurers may offer you a discount if you have several types of insurance with one provider. If you have a motorcycle, boat, homeowner’s or renter’s policy, you can save more money by bundling them all together.
• Talk to insurance agents about price-per-mile policies: These auto insurance policies are best for low-mileage drivers who only drive a few thousand miles per year. You will report your mileage to the insurer several times a year and may have to send maintenance documents to the insurance company.

Read More: 8 Simple Ways to Save You 90% On Your Car Insurance

Iowa State Auto Insurance Premiums

Iowa auto insurance companies classify drivers and vehicles into risk categories. So, your price for auto insurance is based on your risk group and your behavior.

In Iowa, electric vehicles (EVs), fast foreign cars, heavy trucks, young drivers, and unsafe drivers tend to cost the most to insure.

When calculating your premium, Iowa auto insurers consider your:

• Age
• Gender
• Marital status
• Vehicle value
• Vehicle age
• Driving experience
• Type of vehicle
• Claims history
• Points on your license
• Tickets, moving violations and DUI
• Zip code and garage location

IA Auto Insurance Rates by Carrier

We scoured the web to find the best Iowa auto insurance rates for very safe drivers, age 30 or more, with no claims or DUIs. But remember, your cost will be based on the variables above.