If you own a vehicle that is registered in the state of Iowa, you are required by law to carry car insurance. If you are involved in an accident, auto insurance covers your financial and legal responsibility. You could be subject to severe consequences such as heavy fines or suspension of your license.
Each state has its own car insurance laws. This is why it is so important to understand the insurance requirements of Iowa. Driving without insurance puts you at risk. Here is some recent accident data for Iowa:
- There were 39,793 crashes that caused property damage in Iowa in 2016.
- In the same year, 5,047 people suffered minor injuries in a car crash.
- In 2016, there were 355 deaths in Iowa.
Iowa’s car insurance laws
Iowa law requires that drivers have a minimum coverage. Iowa minimum car insurance is abbreviated as 20/40/15, which includes personal liability insurance. Iowa’s policy limits are:
- $20,000 per person for bodily injury liability insurance
- $40,000 per accident for bodily injury liability
- $15,000 per accident for property damage liability coverage
Iowa car insurance laws also require drivers to carry uninsured motorist/underinsured motorist coverage. The minimum coverage is $20,000/$40,000, respectively. This coverage can be rejected by written request.
Personal liability insurance in Iowa protects you against an at-fault crash. Bodily injury coverage covers the cost of medical bills for other drivers who are injured in an accident. If there is damage to the vehicle, property damage liability coverage will cover it.
Iowa offers liability insurance
Iowa’s auto insurance requirements do not cover personal liability insurance. It is important to note that minimum coverage auto insurance policies do not cover your vehicle or pay for medical bills if you are in an accident.
Insurance experts recommend that drivers buy more coverage than is necessary. It is not guaranteed that the minimum coverage policy will provide you with all your legal and financial rights in an accident at fault. Your personal assets may also be at risk if you are taken to court by the other driver.
A full coverage policy that includes collision, comprehensive, and medical payments coverage can provide additional protection. Comprehensive insurance covers your vehicle’s damages after an accident. Collision insurance will cover your vehicle’s repair costs following an incident other than a collision. If you are injured in a covered accident, medical payments coverage will pay your medical bills.
Is Iowa a no-fault state?
Iowa is not considered a fault State. Their insurance company will pay the other driver’s medical bills and damages if they cause an accident in a fault-state. No matter who caused the accident, every driver’s insurance company covers their medical expenses. As part of minimum coverage, drivers in no-fault countries are required to have personal injury protection (PIP).
Iowans without insurance can face severe penalties
Driving uninsured in Iowa is illegal. If an officer pulls you over and you are unable or unwilling to show proof of insurance, the officer will issue either a warning or a ticket. In this case, you have two days to prove that you have current coverage. For more serious cases, an officer might issue a citation and remove the vehicle’s plates. He may also revoke registration and impounded the vehicle.
Drivers who are convicted of more than two offenses will be fined up to $250 and could have their driver’s license suspended. Iowa drivers must purchase SR-22 insurance to restore their driving privileges.
Iowa offers additional auto insurance options
Iowa insurance law requires that drivers carry personal liability insurance. Drivers may also consider buying optional coverages to increase their protection. These endorsements can prove to be very beneficial.
- Gap insuranceGap insurance is available to Iowa car-lease and finance customers. Gap insurance covers the difference between the car’s diminished worth and the loan balance if your car is totaled.
- Accident forgiveness:Your car insurance premium may not rise if you are a victim of an accident forgiveness. Accident forgiveness may be available for those who aren’t able to make claims for a set amount of time.
- Rental car reimbursement:If your car is damaged or destroyed in a covered accident, rental car reimbursement will pay for the cost of temporary rental vehicles.
Questions frequently asked
Which Iowa car insurance company is best?
The best car insurance company in Iowa varies, because it is different for every driver. It all depends on what coverage you need, which discounts you are eligible for, and what your budget is. Compare prices to find the best deal.
Which Iowa state has the lowest car insurance?
The cheapest car insurance companies in Iowa are USAA, Iowa Farm Bureau, Geico, Auto-Owners and Progressive, based on our sample quotes. Keep in mind, however, that rates vary and there may not be one provider that offers the best deal for everyone.
What is Iowa’s average cost for car insurance?
The average cost of car insurance in Iowa is $1,260 per year for a full coverage policy. Iowa drivers pay lower rates than the average American. The average cost of full coverage car insurance in the United States for full coverage is $1,674.
Iowa offers car insurance discounts
Many Iowa car insurance companies offer discounts that can help drivers obtain a lower rate. There are many ways to save money on car insurance in Iowa. It is possible to increase your deductible or improve your credit score to get a better rate.
