Car Insurance

There's a good reason we don't let children or young teens operate motor vehicles: Driving requires both maturity and accountability. In addition to knowing how to safely operate your car or truck, you must be able to show proof of financial responsibility for any motor vehicle accidents that you may cause.

What Is Automobile Insurance?

There are many different types of automobile insurance. Most people choose to purchase bodily injury liability and property damage liability coverage to protect them in the event of an accident for which they were at fault. However, collision, personal injury protection, comprehensive physical damage, and uninsured motorist policies are also available.

Although cost is based primarily on your driving record, automobile insurance prices can vary significantly among insurance companies. It's a good idea to do some online comparison shopping or speak with several customer service representatives before making your purchase.

Asking for higher deductibles or driving a low-maintenance vehicle may also help you reduce your expense. In addition, many insurance companies offer discounts based on your age or location, how often you drive your car, and whether or not you have more than one policy with the company.

If your driving record shows excessive traffic tickets, accidents, crashes, or repair claims, certain major insurance carriers may refuse to cover you. If this happens, your only option will be to speak with a high-risk insurer. You'll be required to pay a much larger premium, so it's in your best interest to keep your driving record as clean as possible.

What Happens After an Accident?

If you are involved in an auto accident, do not leave the scene. Call a law enforcement officer and request any necessary medical assistance.

Note the date, time, location, and road conditions. Prepare a brief description of how the accident occurred, including the speed and direction in which all involved drivers were traveling.

After a motor vehicle accident that results in death, bodily injury, or property damage of over $1,000, an accident report must be filed with the Iowa Office of Driver Services. If the investigating law enforcement officer does not file the report, you must do so within 72 hours.

Once the report is filed, you must produce proof of your financial responsibility to avoid having your license suspended. The most common way to do this is to show documentation of your personal liability insurance. If you have no valid insurance, the following options are available:

• You may get releases from all injured or damaged passengers and motorists involved in the accident.

• You may post payment to the Office of Driver Services.

• You may agree to repay the involved parties on an installment plan.

• You may produce proof of a complete settlement.

• You may request a civil damage action that relieves you of all liability for the accident.

Proof of financial responsibility requirements apply to the owner and the driver of the vehicle. If the accident was caused by someone driving your vehicle with your permission, you will be held responsible. However, no proof of responsibility is required if the only damages were to yourself.

What Happens When an Uninsured Motorist Causes an Accident?

While Iowa does not have a compulsory insurance law, the Financial & Safety Responsibility Act states that reckless and financially unsound drivers can have their operating and registration privileges suspended. To have their licenses reinstated, drivers will be required to prove financial responsibility for any injuries or damages they may cause.