A land of rolling hills, plains, and cornfields, Iowa is located in the center of the American Midwest and is considered part of America’s heartland. However, Hawkeye State is not so “middle of the road” when it comes to Iowa auto insurance, with plenty of options to help you drive safely through its rugged terrain.
Iowa Auto Insurance [Rates + Affordable Coverage Guide].
It can take a lot of work to find the right auto insurance. And it can be harder to find time to research it. Don’t worry! Our comprehensive guide will save you time and has all the information you need to make the right decision.
We’ll explore auto insurance coverage, rates, providers, state laws, and much more.
Iowa Auto Insurance Rates
Getting the information you need about the best insurance coverage and rates available in Iowa can be overwhelming. After all, you don’t want to pay for coverage you don’t need or that is too expensive.
We want you to know what you’re paying for, so this is your guide to the main types of coverage, rates, and insurance companies in Iowa.
Iowa Auto Insurance Minimum Coverage
Although car insurance is not required in Iowa, if you are in an accident, under the Motor Vehicle and Financial Security Act, you must provide proof of financial responsibility. This proof could be your own liability insurance.
Iowa is a “guilty” state. What does this mean?
THE PERSON WHO CAUSED, OR IS AT FAULT, AN ACCIDENT MUST PAY ANY PERSONAL INJURY OR PROPERTY CLAIMS.
IF YOU ARE INSURED, YOUR PROVIDER WILL COVER LOSSES UP TO THE MINIMUM LIABILITY AMOUNT. IOWA LAW REQUIRES DRIVERS TO CARRY MINIMUM LIABILITY COVERAGE.
Iowa requires a minimum of 20/40/15 bodily injury and property damage coverage. Average insurance rates in Des Moines are around $268.20/month.
Liability insurance pays everyone (drivers, passengers, pedestrians, bicyclists, etc.) who is owed money for property damage and/or injuries resulting from a car accident caused by you or anyone under your policy. Drivers in Iowa must have the following minimum liability insurance if their licenses have been suspended or revoked:
$20,000 to pay for bodily injury per person
$40,000 to pay total bodily injury per accident
$15,000 to pay for property damage per accident
Remember: these are only the minimum requirements . If the damage costs more, you will have to pay for it. We suggest you purchase more than the minimum liability insurance amount for added protection in the event of an accident.
Financial Responsibility Forms
If you live in Iowa, state law requires that you have a financial responsibility form to show that you have valid insurance on your car or that you can pay for damages in an accident. Every time a police officer pulls him over or if he has an accident, he must provide proof of financial responsibility.
The following are some acceptable forms of financial responsibility to avoid having your license and registration suspended after an accident:
Valid liability insurance identification cards
Your current auto insurance policy as proof that you had liability insurance when the accident occurred
A valid insurance folder (a temporary form of car insurance)
A release form from everyone involved in the accident.
A filed statement showing that you promise to cover, in an installment plan if necessary, the costs of injured or damaged parties.
A civil action decision for damages that releases you from any liability.
A completed order for the trial confession with the agreed payment schedule
Evidence of an agreement reached between the parties.
Payment of one of the following to “Driver and Identification Services” in Iowa: cash, certified check, cashier’s check, bank draft, or money order
Iowa insurance laws can be confusing because some loopholes may prevent you from having to prove financial responsibility at the time of an accident. According to the DMV, here are some exceptions:
“At the time of the accident, your vehicle was legally stopped, stopped, or parked.”
“Someone was driving your vehicle without your permission at the time of the accident.”
“You were the only person who suffered injuries or property damage as a result of the accident.”
So, to avoid confusing laws and penalties, it’s easier to have the required Iowa auto insurance.
Premiums as a percentage of income
In 2014, Iowa’s per capita annual disposable personal income (DPI), after taxes, was $39,820.
THE AVERAGE ANNUAL COST OF AUTO INSURANCE IN IOWA IS $684, WHICH IS ABOUT 1.8 PERCENT OF THE AVERAGE DPI.
The average Iowan earns $3,318 each month to buy food, pay bills, etc. Auto insurance will take about $56 off you, which is below average premiums in other states. The national average annual insurance premium is $981 per month. The money you save could go toward groceries, rent, and other expenses.
Or, if you can and want to, you can pay a little more for coverage beyond the minimum liability amount. Be sure to shop around to get the best rates.
Average Monthly Car Insurance Rates in IA (Liability, Collision, Comprehensive)
Type of coverage Annual costs (2015)
Additional Liability Coverage
A loss ratio compares how much a company spends on claims to how much money it receives in premiums. A 60 percent loss ratio indicates that the company spent $60 on claims for every $100 earned in premiums.
Accident rate 2013 2014 2015
Medical payments (Med Pay) 67% 69% 79%
Uninsured or Underinsured Driver 50% 68% 72%
Plugins, Endorsements, and Additional Clauses
These are some more options to complete your coverage policy.
You’re lucky! There are plenty of powerful yet inexpensive extras you can add.
Here is a list of other helpful coverage options available in Iowa.
Guaranteed automatic protection (GAP)
Personal Protection Policy (PUP)
mechanical breakdown insurance
Auto insurance for non-owners
Modified auto insurance coverage
classic car insurance
Pay-per-drive or usage-based insurance
Add any of the above options to your coverage for more protection tailored to your specific needs. You can add one or multiple, so make sure you pick the best ones for you.