Updated: November 21, 2024
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Iowa's minimum coverage car insurance includes $20,000 bodily injury liability per person, $40,000 bodily injury liability per accident and $15,000 property damage liability per accident. As Iowa is an at-fault state, liability insurance is required to cover damage if you cause an accident.
The average monthly cost of meeting the minimum car insurance requirements in Iowa is $28. Review the cheapest car insurance in Iowa to manage your budget while meeting legal requirements.
Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Iowa Insurance Division to get the most accurate cost data for various Iowa drivers.
These rates reflect the cost of minimum coverage car insurance requirements in Iowa as of November 2024.
In Iowa, drivers must carry the state minimum car insurance coverage to legally operate a vehicle on the roadways. The required coverages with their minimum amounts are:
The cost of your premium in Iowa is influenced because it is a fault state. In a fault state, the driver responsible for an accident is liable for the damage caused; their insurance typically covers the costs. In other words, the person at fault for an accident is financially responsible for the bodily injury and property damage resulting from the accident.
Iowa doesn’t require collision or comprehensive coverage as part of its minimum auto insurance requirements. However, lenders often require borrowers to maintain both types of insurance to protect their investments from damage or loss when financing or leasing a vehicle. This ensures the vehicle's value is safeguarded, regardless of fault or natural events. Thus, vehicle owners with a loan or lease agreement typically need to secure collision or comprehensive insurance in Iowa.
What Liability Insurance Covers | What Liability Insurance Doesn't Cover |
|---|---|
Injuries to others if you're at fault in an accident | Your injuries |
Damage to another person’s property if you're at fault in an accident | Damage to your car |
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy | Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased |
Repairs for weather-related accidents or if you were hit by an animal |
The table reflects Iowa's minimum car insurance requirements, covering bodily injury and property damage. Your policy's specifics depend on its terms and conditions.
Insurers view age as a key factor in setting minimum car insurance rates. In Iowa, drivers aged 22 to 29 face the highest premiums due to their lack of experience and higher accident risk.
The table below shows the average annual and monthly costs for minimum coverage car insurance in Iowa by age group.
| 22-29 | $430 | $36 |
| 30-59 | $337 | $28 |
| 60 + | $339 | $28 |
In Iowa, the most cost-effective minimum coverage insurance providers are:
While finding an affordable minimum coverage insurance plan is essential, ensure your choice meets your needs and provides adequate protection. Review the best car insurance options in Iowa to find the option that works best for you.
| Progressive | $188 | $16 |
| Westfield | $220 | $18 |
| State Farm | $227 | $19 |
| West Bend Mutual | $240 | $20 |
| Grange Insurance | $262 | $22 |
| American Family | $298 | $25 |
| Auto-Owners Insurance Co | $298 | $25 |
| Travelers | $300 | $25 |
| GEICO | $302 | $25 |
| Iowa Farm Bureau | $327 | $27 |
| Western National | $349 | $29 |
| IMT Insurance Company | $415 | $35 |
| Grinnell Mutual | $430 | $36 |
| Allstate | $570 | $48 |
| Farmers | $621 | $52 |
In Iowa, optional add-on coverages include comprehensive, collision, uninsured/underinsured motorist, medical payments and rental reimbursement coverage. While not mandatory, these add-ons enhance protection beyond the state minimum auto insurance, covering costs from non-collision events, vehicle repairs and medical expenses. Understanding how much car insurance you need can help determine their value for you.
Add-On Coverage | What It Covers | What It Doesn't Cover |
|---|---|---|
Uninsured/Underinsured Motorist Coverage | Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance | Damage to your vehicle if you're at fault or damage that exceeds policy limits |
Personal Injury Protection (PIP) | Medical expenses, lost income and funeral costs for you or your passengers regardless of who's at fault | Vehicle damage or injuries to the other driver |
Roadside Assistance | Services like towing, flat tire changes and jump-starts when your car breaks down | Cost of parts or repairs needed after the tow |
Gap Insurance | Pays the difference between your car's current value and what you still owe if it's totaled or stolen | Vehicle depreciation or overdue loan payments |
Rental Car Reimbursement | The cost of a rental car while your vehicle is being repaired after a covered event | Fuel, insurance or other rental extras |
Collision Coverage | Repairs to your car after an accident, regardless of fault | Damage due to theft, vandalism or natural disasters |
Comprehensive Coverage | Repairs to non-collision damage from events like theft, fire or hail | Damage from a collision or personal injuries |
Towing and Labor Coverage | Towing and basic roadside-assistance labor costs at the site of your vehicle's breakdown | More extensive repairs needed at a garage |
Custom Parts and Equipment Coverage | Safeguards aftermarket enhancements like custom wheels or stereo systems | Original parts that came with your vehicle |
Accidental Death Coverage | Offers a payout if you or a passenger dies or experiences certain injuries in a car accident | Non-accidental death or injuries |
Classic Car Insurance | Agreed-upon values for your unique vehicle, tailored for vintage or collector cars | Regular use like your daily commute |
In Iowa, driving without insurance can result in penalties based on prior offenses. A first offense may have lighter consequences, while further incidents often lead to more severe punishments.
Offenders could face the following additional penalties:
Adhering to state laws, including maintaining at least state minimum car insurance, helps you avoid legal repercussions and offers financial protection in the event of an accident. Ensure your vehicle is insured to safeguard against the high cost and legal troubles of driving uninsured.
If your car insurance policy is canceled in Iowa, act quickly. Do not drive your car; driving without insurance is illegal. Immediately contact your insurance agent to understand why your policy was canceled and to explore options for reinstatement or to find a new policy.
The Iowa Department of Transportation (DOT) will be notified of your status as uninsured. Driving without minimum coverage can lead to fines and suspension of your license. Maintain at least the state minimum auto insurance to ensure you follow the law.
For drivers struggling to get coverage, Iowa does not have a specific government program like TexasSure. However, options are available, such as seeking out insurance providers specializing in high-risk coverage or contacting the Iowa Automobile Insurance Plan for assistance. Always carry at least the mandatory minimum coverage to stay on the right side of the law.
Your car insurance policy in Iowa may have been canceled for several reasons:
Keep your information accurate and payments up to date to maintain your coverage.
Get clear, concise answers to help you understand Iowa's minimum car insurance requirements.
In Iowa, minimum coverage auto insurance requires a policyholder to have bodily injury liability coverage at $20,000 per person and $40,000 per accident. Property damage liability coverage is also mandatory at a minimum of $15,000 per accident. Uninsured/underinsured motorist coverage and personal injury protection (PIP) are not required by state law, allowing for a more cost-effective basic insurance package. Although meeting this minimum protects you legally, it may not fully cover all expenses in an accident.
Iowa requires minimum automobile liability coverage to ensure drivers can cover the costs of damage or injuries they cause in an accident. This financial responsibility is critical to protecting the at-fault driver and other parties involved, ensuring victims receive compensation without costly litigation.
Iowa doesn’t legally require comprehensive insurance. However, protecting against non-collision incidents like theft, vandalism or weather damage is recommended. It’s essential if you have a newer car or are leasing or financing, as lenders often require it.
Driving uninsured in Iowa can result in serious consequences. If caught, you may face a fine ranging from $250 to $1,500. Sometimes, community service may be offered as an alternative to paying the fine. You could also face license suspension. To reinstate your driving privileges, you must file an SR-22 form proving you've purchased the minimum coverage. Ensure you have at least the minimum required insurance to avoid these penalties.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
