Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Former Farmers Insurance CSR

UPDATED: Nov 10, 2020

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Known as the American Heartland and the home of the Hawkeyes, Iowa is one of the jewels of the Corn Belt and an excellent state for living, working and enjoying life. Over the past few decades, the state has moved away from its roots in agriculture and has worked to expand its economy to include a variety of industries, such as biotechnology, manufacturing, finance and insurance. Speaking of insurance, let’s take an inside look at Iowa auto insurance laws, policies and other items that are helpful bits of knowledge for those who reside in the Hawkeye State.

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Iowa Auto Insurance Laws And Requirements

In Iowa, the state liability coverage minimums are:

  • Bodily Injury Liability Coverage – $20,000 per person
  • Bodily Injury Liability Coverage – $40,000 per accident
  • Property Damage Liability Coverage – $15,000 per accident

Take a look at how Iowa’s minimum rates compare with surrounding states.

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Optional coverage options in Iowa include:

  • Comprehensive Coverage
  • Collision Coverage
  • Medical Payments Coverage
  • Rental Car Reimbursement Coverage
  • Roadside Assistance / Towing Coverage
  • Uninsured/Underinsured Motorist Bodily Injury
  • Loan/Lease Gap Covergae

Iowa follows the ‘tort’ system for their auto insurance laws, like many other states across the nation. This means that when an accident occurs, the driver who caused the accident will be declared the ‘at fault’ party, and will be subject to insurance claims and lawsuits. State law requires that drivers protect themselves financially by purchasing a minimum of two different types of Iowa auto insurance: Bodily Injury Liability and Property Damage Liability.

Bodily Injury Liability insurance covers the costs associated with injuries stemming from a crash that you caused. This insurance doesn’t cover the driver that owns the policy; it is intended to pay out claims to other drivers if you were the one who is at fault for the accident. For example, if Driver A causes an accident in which Driver B sustains injuries, Driver A’s BIL insurance will kick in to cover some of the medical treatment, rehabilitation, lost wages, pain and suffering, and other costs incurred by Driver B. The minimum amount of Bodily Injury Liability coverage required by law is $20,000 for a single party, per accident and $40,000 for all parties in a single accident. With today’s high costs for hospitalization and medical treatment, drivers would do well to purchase much higher coverage than this if they can afford it.

The other type of mandatory Iowa auto insurance is known as Property Damage Liability. This insurance covers costs stemming from damages to another automobile, or someone’s property in an accident that you cause. Using the example from above, Driver A’s PDL insurance would pay out a claim to cover the damages to Driver B’s car, including any body work or repairs that are needed. Drivers in Iowa must have a minimum of $15,000 in Property Damage Liability coverage.

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Iowa Auto Insurance Rates

As of July 2011, there is nowhere in the country that compares to Iowa’s incredibly low rates for auto insurance. On average, a driver in the state pays less than $800 per year for auto insurance, which translates to about $67 per month. When compared to the national average of $1440 per year for auto insurance, there’s no doubt that drivers in Iowa are getting a very good deal on their insurance rates.

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As is the case with the rest of the country, those that live in Iowa’s larger cities end up paying a bit more for their auto insurance. Drivers in Cedar Rapids are looking at about $1,000 per year for insurance and those in Des Moines are closer to around $1,200 per year. Let’s see how ZIP code affect your auto insurance rates.

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There are a lot of factors that auto insurance companies take into consideration when determining your rates. Take a look at our overview here.

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While many of these factors are simply based on your own driving record, two things that affect even the safest of drivers are age and gender. As with most states, males typically pay higher auto insurance rates than females.

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Iowa Auto Insurance Rates by Company

Though the state boasts very cheap auto insurance rates overall, let’s take a look at how rates vary between some of the largest companies.

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But which companies are the largest, holding the most market share percentage in the region?

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Driving Statistics In Iowa

In regards to crash statistics, the news is good for Iowa’s driving population. In 2009 (the most recent year in which official numbers are available), the state saw a total of 56,518 vehicle crashes, with 337 of those resulting in a fatality and 14,520 resulting in some form of physical injury. These numbers are down over the past couple of years, and the 2nd lowest annual total from any year in the last decade. 2008’s totals saw 369 fatalities, more than 16,000 injuries and 61,500 crashes; the downward trend proves that Iowa’s focus on driver safety, as well as increased law enforcement presence on highways and freeways, is having a positive effect on the number of vehicle crashes that occur.

Things are also going very well for Iowans when it comes to vehicle thefts throughout the state. In 2009, just 3,888 vehicles were stolen, down from 4,376 the year prior and well down from the decade’s peak of 5,823 in 2002. As high numbers of stolen automobiles can have a negative impact on auto insurance rates, this downward trend bodes well for the future. As long as drivers continue to lock up their vehicles and take care to prevent thefts from occurring, Iowa auto insurance rates will continue to remain low.

4AutoInsuranceQuote.com helps users like you with finding the best rates available for auto insurance in Iowa. All you have to do is scroll to the top of this page, and enter in your ZIP code to get started. With dozens of different companies offering a range of insurance plans and packages, it can be tough to make a decision on whom to trust with your auto insurance; avoid paying high insurance rates and use our handy tool at the top of this page today!

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Auto Insurance Agents In Iowa

Iowa Auto Insurance Agents

Additional Iowa Auto Insurance Information