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Iowa Car Insurance & Minimum Coverages

If you’re looking for a quiet place to live or retire, consider Iowa. While it’s certainly not known for its bustling city streets, the Hawkeye State still has plenty to love. Looking to drive around the state?

You’ll need the right insurance. In this guide, we’ll talk about what you need to legally drive in Iowa, and the Iowa car insurance you’ll need to purchase.

Iowa Car Insurance Minimum Requirements

As you’re preparing to move to or drive in the Hawkeye State, you’ll need to research your insurance options. To legally register your car in Iowa, you’ll need to carry minimum insurance of:

  • Bodily injury liability: $20,000 per person and $40,000 per accident.
  • Property damage liability: $15,000.
  • Uninsured and underinsured motorist bodily injury liability: $20,000 per person and $40,000 per accident.

If you choose, you may reject the uninsured and underinsured coverages. Talk to your insurance agent about the forms you’ll need to file in order to legally waive this coverage.

What is the Average Cost of Car Insurance in Iowa?

If you elect to carry full insurance coverage, you can expect to pay, on average, around $1,015 per year. This is about 29% lower than the national average. Should you choose the minimum coverage, you’ll pay in the ballpark of $400.

Remember that your rates for your Iowa car insurance will vary based on factors specific to you. You may see higher or lower rates based on your:

  • Age
  • Sex
  • Marital status
  • Credit rating
  • Driving history
  • Zip code where you park your car

Talk to your insurance agent about how you can bring your insurance costs down. You may be eligible for discounts based on your employment or organizations you’re affiliated with.

Why is Car Insurance So Cheap in Iowa?

As you may know, Iowa is a very rural state. There are only just over 2 million licensed drivers in the state, which means you have a very low chance of being involved in an accident.

Furthermore, Iowa is an at-fault state. If you’re involved in an accident, the insurance company of the driver who caused that accident will be responsible for payment. This further brings your premiums down.

Finally, the minimum insurance requirements in Iowa are low compared to national norms. Because you’re getting less, you pay for less.

Lapses in Iowa Car Insurance

As we noted, it’s Iowa law that you must carry Iowa car insurance. If you’re pulled by law enforcement and can’t prove that you have coverage, you’re going to face some consequences.

First, you’re likely going to face revocation of your license and your vehicle’s plates. You’re also probably going to have to pay at least $250 in fines to the state.

Involved in an accident? Your penalties will be even higher. Your license can be suspended for up to a year, and all vehicles you’ve registered will be suspended. There’s a high probability that you’ll be financially responsible for costs associated with the accident.

To reinstate your driving privileges, you’ll need to pay more fees and pass driving tests. It’s expensive and inconvenient; your best option is just to keep your Iowa car insurance current.

Best Auto Insurance in Iowa

Iowans were surveyed and asked who they trusted the most for their car insurance needs. The top five Iowa car insurance companies were determined to be the following:

  • Hastings Mutual
  • Pekin
  • Farm Bureau
  • IMT
  • American Family

Make sure you shop around to get the best rate for your auto insurance. Your rates may differ from other drivers depending on your driving history, your credit, and other factors.

Driving in Iowa

Are you ready to explore the state of Iowa? Here are a few laws and driving facts about the state you may be interested to learn.

  • It’s illegal to use the handicapped placard, license plate, or parking sign of a dead person.
  • In Mount Vernon, you may acquire a permit to throw bricks and rocks onto a highway.
  • Ice cream trucks and ice cream “men” are banned in Indianola, Iowa.
  • Around 7% of all accidents in Iowa are related to distracted driving.
  • It’s still legal to talk on or use the phone while driving on Iowa’s public streets.

Conclusion: Car Insurance in Iowa

Iowa isn’t well known for its nightlife or large cities, but there are still almost 10,000 miles of highway to explore. Make sure your Iowa car insurance is up to date and current to avoid legal repercussions and possible suspension of your license.