Iowa Car Insurance

A typical auto insurance policy provides six basic coverages — bodily injury and property damage liability, personal injury protection, uninsured and underinsured motorist protection, collision, and comprehensive coverage, with a minimum coverage requirement for automobile liability insurance. Bodily injury liability and personal property liability insurance cover medical expenses and property damages resulting from an automobile accident for which you are at fault. Personal injury protection pays your medical expenses and the medical expenses of your passengers (unless your passengers have their own automobile insurance liability policies), regardless of who is at fault. Collision coverage pays for damages that you car sustained from an automobile accident. Finally, comprehensive coverage pays for damage to your automobile from other covered events. The following are the minimum liability coverage requirements in the state of Iowa:

Required Coverages in Iowa:

  • Bodily Injury Liability Per Person: $20,000
  • Bodily Injury Liability Per Accident: $40,000
  • Property Damage Liability: $10,000

Uninsured and underinsured motorist protection will pay for medical expenses, settlements, or lawsuits resulting from an accident caused by an uninsured, underinsured, or hit-and-run motorist. The Iowa Financial and Safety Responsibility Act protects other drivers from uninsured and reckless drivers by suspending their license and registration when they are not able to show immediate financial responsibility in the event of an accident. In addition, the Act requires proof of financial responsibility from anyone whose license has been previously suspended or revoked.

Determining Your Rate in Iowa

An insurance company will determine your auto insurance rate by your age, sex, marital status, the type of car you drive, the frequency and area of driving, your claims history, and your credit score. These factors correlate to your risk of accident, theft, or damages. Companies must file their rates with the Iowa insurance department before they are implemented to ensure they are fair and adequate. The average expenditure for car insurance in Iowa was ranked third least expensive in the United States at $532 in 2009 by the Insurance Information Institute.

Discounts may apply to your auto insurance policy in Iowa for the installation of anti-theft and safety devices, carpooling, passing state-approved defensive driving courses, maintaining a good driving record and low annual mileage, or possessing a claims-free history. In addition, you may get a discount for insuring multiple vehicles with the same company. Check with your insurance company to find out if you qualify for discounts on your automobile insurance premium.