Cheapest Car Insurance for Low-Income Drivers in Iowa (October 2024)

Progressive offers the cheapest car insurance for individual drivers with low income and poor credit history in Iowa at $24 per month. For families with low income, State Farm is the most affordable provider at $37 per month.

Iowa does not offer state-backed car insurance programs for families and individuals with low income. One option to manage costs is to look for the provider with the most affordable rate. There are also ways to get discounts to help alleviate the cost of car insurance. Minimum coverage will also help you drive legally, but there are downsides to this type of coverage. For example, it may not cover all expenses in an at-fault accident, leaving you with significant out-of-pocket costs.

Car insurance companies in Iowa do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history and the type of car you drive. At-fault accidents and moving violations can also increase your rates.

The best way to find the cheapest rates is to compare quotes from several insurance companies. If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. If you rarely drive, pay-per-mile insurance can also be a great option to save money. MoneyGeek rounded up the cheapest insurers for drivers in Iowa with low income to help you save.

To legally drive in the Hawkeye State, you must have car insurance that meets the state's minimum car insurance requirements. Your policy should include:

• $20,000 for bodily injury liability per person
• $40,000 for bodily injury liability per accident
• $15,000 for property damage liability per accident

When considering car insurance, you have the choice between a liability-only car insurance policy and a full coverage car insurance policy. Liability-only coverage is the most affordable option and covers damages to other drivers if you're at fault in an accident, but it won't cover your own vehicle. On the other hand, full coverage includes collision and comprehensive coverages, protecting your vehicle against a wide range of damages, including theft, vandalism and natural disasters.

Understanding the risks and benefits of each coverage type is crucial to selecting the right policy for your needs.

Credit history plays a significant role for drivers with low income in Iowa, affecting car insurance premiums. A poor credit record can signal higher risk to insurers, leading to higher premiums. This means drivers with poor credit may face higher costs for car insurance in Iowa.

The cheapest car insurance companies for drivers with low income and poor credit in Iowa are:

• Progressive: $293 per year; $24 per month
• Grange Insurance: $343 per year; $29 per month

Drivers with good credit can get the cheapest car insurance in Iowa from:

• Progressive: $188 per year; $16 per month
• State Farm: $227 per year; $19 per month

Driving without insurance in Iowa is considered a misdemeanor and can lead to suspension of your driver’s license and vehicle registration, fines ranging from $175 to $1,000 and other penalties.

Although your income doesn't directly affect car insurance rates, your family situation does. In Iowa, a single parent with a teen faces an annual premium of $668, while a married couple with a teen can secure coverage for a lower cost of $449 per year.

The most affordable car insurance companies for married couples with a teen in the Hawkeye State are:

• State Farm: $449 per year; $37 per month
• Progressive: $475 per year; $40 per month

For single parents with a teen, the cheapest options are:

• State Farm: $668 per year; $56 per month
• Auto-Owners: $855 per year; $71 per month

The gap in rates between married couples and single parents highlights the variability in car insurance pricing. A strong credit history is key to obtaining more affordable car insurance rates.

Car insurance premiums generally decrease as you reach the early senior years (typically around age 55 to 65), especially with a clean driving record. The two cheapest car insurance for senior drivers with low income and poor credit history are:

• Progressive: $266 per year; $22 per month
• Grange Insurance: $344 per year; $29 per month

After the age of 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. Iowa has specific laws and guidelines for seniors when getting car insurance.

Income doesn't directly affect car insurance rates in Iowa. However, if a low income results in a poor credit record, it can lead to higher rates. Conversely, good credit can help lower your rates. Understanding the factors contributing to car insurance rates can help you make informed decisions when choosing the best car insurance for you.

You don't need a state-sponsored program to cut costs — finding affordable car insurance in Iowa is possible with the right strategies. Here are some tips to lower your premiums:

Finding affordable car insurance for drivers with low income in Iowa can be challenging. Get answers to the most commonly asked questions about low-income car insurance in the Hawkeye State.