Car Insurance in Iowa

Car Insurance in Iowa

Iowa has specific car insurance requirements to ensure state residents have adequate coverage in the case of an accident or other vehicle-related incident.

Learn more about Iowa's auto insurance requirements.

Iowa Financial Responsibility Laws

Iowa requires all drivers to carry liability insurance with the following minimums:

• $20,000 for bodily injury or death (one person in an accident)
• $40,000 total for bodily injury or death (multiple people in an accident)
• $15,000 for property damage per accident 

If you do not show proof of financial responsibility when required, the Iowa Department of Transportation (DOT) will suspend your driving and registration privileges.

Post-Accident Requirements

In Iowa, if you are driving or own a vehicle involved in an accident that results in bodily injury, death, or total property damage of $1,000 or more, you have to file an Accident Report Form (Form 433002) (even if you weren't at fault) with the Iowa DOT's Customer Services Bureau within 72 hours. The only exception is if the accident was investigated by a police officer and that officer files a report.

You must also prove your financial responsibility or face license suspension. You can do so in any of the following ways:

• Provide proof that you had liability insurance (see “Iowa Car Insurance" below) when the accident occurred.
• Post one of the following payable to “Customer Services Bureau":
  • Cash.
  • Certified check.
  • Cashier's check.
  • Bank draft.
  • Postal money order.
• Obtain a release from every involved party.
• File a statement agreeing to cover the costs to the injured or damaged parties on an installment plan.
• Get a decision from a civil damage action that excuses you from any liability.
• Complete a warrant for confession of judgment that has an agreement upon payment schedule.
• Submit evidence of a settlement for damages and/or injuries.

EXCEPTIONS: You DO NOT have to submit proof of financial responsibility after an accident IF:

• At the time of the accident, your vehicle was legally standing, stopped, or parked.
• Someone was driving your vehicle without your permission at the time of the accident.
• You were the only person to incur injuries or property damage as a result of the accident.

Post-Suspension Requirements

If your Iowa driver's license was suspended or revoked due to an OWI (operating while intoxicated) offense, you have to show proof of financial responsibility for any future injuries or damages you might cause.

You must have proof of financial responsibility on the effective date of your suspension or revocation; it must last 2 years.

Once you receive your notice of suspension, you'll need to submit future proof through one of the following methods:

• File an SR-22 form with the DOT's Customer Services Bureau. Your Iowa car insurance company will file the form for you.
  • This Certificate of Automobile Liability guarantees you'll hold car insurance for a specified period of time (see “Iowa Car Insurance" below).
• File one of the following for $55,000:
  • Surety bond.
  • Securities.
  • Cash.

NOTE: Special circumstances apply if you need to drive a vehicle owned by your employer or by someone who is issued a certificate of self-insurance.

SR-22

If you are required to submit an SR-22, you'll need to have the at least minimum amounts of liability insurance.

Iowa Car Insurance Options

In addition to your required liability coverage, you'll also have the option to purchase one or more of the following types of coverage:

• Medical payments coverage – Helps cover your medical costs after an accident.
• Collision coverage – Helps pay for damages to your vehicle in an accident you caused.
• Comprehensive coverage – Covers costs in an event that is not accident-related, like fire, theft, or vandalism.
• Loan/lease gap coverage – Helps balance the difference between the actual cash value of your vehicle after an accident and the amount you owe.
• Rental reimbursement coverage.
• Towing and labor coverage.

Proof of Insurance

When you purchase an Iowa auto insurance policy, the company providing the coverage will send you an insurance card.

Keep this card in your vehicle at all times so you are ready to submit it to the appropriate authorities in the event of an accident.

Iowa Auto Insurance Questions and Concerns

Insurance can sometimes get complicated. If you have issues with your insurance provider or policy, the Iowa Insurance Division (IID) can help. If you have a question, you can contact the IID toll free in Iowa at (877) 955-1212.

You can also send questions to market.regulation@iid.iowa.gov.

Filing a Complaint

If you have a concern and wish to file a complaint with the IID, you can do so*:

• Online.
• By downloading and completing the Consumer Complaint form.
  • Send the completed form to the address or fax number on the form.

* Review the IID's tips for filing a complaint prior to submitting one.

Insurance Fraud

When someone commits insurance fraud, the costs that the insurance companies incur get passed down to you in the form of higher rates.

To keep insurance premiums low for everyone, it's important to report fraud when you suspect it.

You can do so by:

• Filing an online complaint at the National Association of Insurance Commissioners website.
  OR
  
• Downloading and completing the Insurance Fraud Complaint Form.
  • Mail it to the address listed on the form.

What Determines Iowa Car Insurance Rates?

When you choose to buy a car insurance policy in Iowa, the following factors will likely be used to set your rates:

• Your driving record.
• Your claims history.
• Your:
  • Marital status.
  • Age.
  • Gender.
• The location of your car's parking spot.
• The main use of your vehicle.
• The make, model, and year of your vehicle.
• Any prior coverage.
• Your credit history.

Car Insurance Discounts

When comparison-shopping for an Iowa car insurance policy, asking about discounts is a great way to save money on your premium. You can often get a discount for:

• Owning a home.
• Insuring multiple cars.
• Paying your premium in full.
• Being a good student (a B average is typically required).
• Switching insurance providers.
• Having an accident-free record.

While discounts can help you get cheap car insurance quotes, the best way to save money is to drive safely! A clean driving record goes a long way to getting and maintaining low-cost auto insurance in Iowa.

Iowa Car Insurance FAQs

Does insurance follow the car or the driver in Iowa?

In Iowa, auto insurance follows the car, rather than the driver. This means that, as long as someone has your permission to drive your vehicle, they are covered under your policy in the event of an accident.

What auto insurance is required in Iowa?

Iowa requires liability insurance with minimum coverage of 20/40/15. This means at least $20,000 in bodily injury coverage per person, $40,000 in total bodily injury coverage per accident, and $15,000 in property damage coverage.

Can you register a car without insurance in Iowa?

Yes, you can register a car without insurance in Iowa. However, you cannot drive a vehicle without insurance in the state.

What happens if an uninsured driver hits you in Iowa?

If you're in an accident with an uninsured driver, your optional uninsured driver coverage could help cover the costs of the damage, but only if you've added that coverage to your policy. If you don't have uninsured driver coverage, your likeliest option is to sue the driver personally for damages.