Iowa car insurance averages $1,162 annually for full coverage and $386 for minimum coverage, assuming a 40-year-old driver with strong credit and a spotless record. Iowa positions excellently at 11th for full coverage and 4th for minimum coverage in national rankings, offering rates 20% and 44% below national benchmarks respectively.
Average Cost of Car Insurance in Iowa
Updated: October 17, 2025
Advertising & Editorial Disclosure
Key Takeaways
Car insurance costs can range anywhere from $386 to $5,362 per year on average depending on your chosen coverage, driving profile and location.
With rankings of fourth for minimum coverage and 11th for full coverage, Iowa offers some of the most budget-friendly car insurance rates in the nation.
To secure the cheapest car insurance in Iowa, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In Iowa
| Full Coverage | $97 | $1,162 |
| Minimum Coverage | $32 | $386 |
Moving from minimum to full coverage adds $776 per year to your premiums, roughly $65 monthly. Rate variations depend on individual risk factors, driving experience and coverage selections.
Average Iowa Car Insurance Cost by Category
Credit problems create Iowa's most expensive category at $323 monthly for full coverage, despite the state's generally affordable insurance environment. Personal characteristics shape Iowa's car insurance costs dramatically.
Young drivers pay much less at $214 monthly while adults enjoy $94 monthly rates. Older car owners secure Iowa's best deals at $85 monthly, reflecting the state's rural character and lower accident rates.
| Drivers With Old Cars | $28 | $85 |
| Adult Drivers | $32 | $94 |
| Drivers With A Speeding Ticket | $40 | $123 |
| Drivers With Newer Cars | $44 | $136 |
| Drivers With An Accident | $45 | $133 |
| Senior Drivers | $46 | $112 |
| Drivers With A DUI | $58 | $173 |
| Drivers With Low Income | $76 | $194 |
| Young Drivers | $80 | $214 |
| Drivers With Bad Credit | $124 | $323 |
Iowa's agricultural landscape keeps most rates affordable, but credit issues create the state's most substantial premium penalties despite otherwise budget-friendly pricing.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Average Iowa Car Insurance Cost by Company
Travelers provides the most economical option in Iowa at $66 monthly for full coverage, compared to State Farm's higher pricing at $91 monthly. Iowa insurance markets show moderate rate differences, with full coverage premiums ranging from $66 to $91 monthly across established providers.
Iowa drivers can reduce annual costs by approximately $297 through careful company comparison.
| State Farm | $20 | $91 |
| Progressive | $21 | $78 |
| Auto Owners | $28 | $86 |
| Travelers | $28 | $66 |
| Geico | $29 | $78 |
Average Iowa Car Insurance Cost by City
Coralville offers excellent value at $83 monthly while Carter Lake reaches $112 monthly for full coverage - a $29 difference reflecting Iowa's generally stable insurance environment. Most Iowa cities cluster near the lower end of this range.
Iowa's agricultural economy and low population density help maintain affordable rates across most communities. Compare rates for your city below.
Data filtered by:
Ackley
| Full Coverage | $89 | $1,063 |
| Minimum Coverage | $30 | $363 |
Is Iowa Car Insurance Expensive?
Iowa ranks fourth for minimum coverage affordability and 11th for full coverage among the 50 states and Washington, D.C. However, this is only an overall statistic comparing average rates for entire states, and affordability rankings for your city compared to the rest of the United States will vary widely.
Why Is Car Insurance More Affordable In Iowa?
Below we'll explore the reasons for Iowa's high car insurance rates:
Low Rate of Uninsured Drivers
Iowa operates under a traditional at-fault insurance system, meaning the driver who causes an accident is financially responsible for damages. Unlike no-fault states that require expensive personal injury protection (PIP) coverage, Iowa drivers turn to the at-fault party's insurance for compensation after accidents. This fault-based approach results in lower base insurance costs since drivers aren't required to carry mandatory PIP coverage. Iowa's system means that responsible drivers pay less while those who cause accidents face higher premiums.
Weather-Related Risks
Iowa faces weather-related challenges that directly impact insurance costs. Iowa ranks among the top states for hail claims, with major insurers paying out substantial amounts in claims within the state. The state experiences numerous hail events per year on average, causing financial losses. Hailstorms have increased substantially in recent years, contributing to property damage and rising insurance premiums.
Moderate Healthcare Costs
Iowa requires all auto insurance policies to include uninsured and underinsured motorist coverage at levels equal to your liability limits, unless you specifically reject this coverage in writing. This requirement is important because roughly 9% of drivers in Iowa are uninsured, meaning there's roughly a one in 11 chance the other driver won't have coverage if you're in an accident. The mandatory offering of UM/UIM coverage helps protect Iowa drivers from financial losses caused by uninsured motorists.
Low Insurance Fraud Rates
Despite severe weather challenges, Iowa maintains competitive auto insurance rates compared to national averages. The average cost of car insurance in Iowa is well below national averages. Iowa drivers pay less per year for full coverage car insurance and minimum coverage, both lower than national averages. The state's competitive rates help offset the impact of weather-related claims.
Low Vehicle Theft Rates
Iowa uses modified comparative negligence when determining fault in an accident, meaning fault can be assigned to both parties to varying degrees. In order to recover damages in Iowa, the other driver must be at least 51% at fault. For example, if you're in an accident where you're 25% at fault and the other driver is 75% at fault, you can still recover damages, but they'll be reduced by your percentage of fault. This system ensures that drivers who are primarily responsible for accidents bear the greater financial burden.
Balanced Driver Demographics
Young drivers in Iowa face higher insurance costs due to inexperience and higher accident risk. The average annual rate for young drivers in Iowa is higher than for seniors. 18-year-old men have high average premiums for full coverage. The good news is that with time and a clean driving record, rates decrease as drivers gain experience and demonstrate responsible driving habits.
Moderate Inflation Impact
Iowa offers unique alternatives to traditional auto insurance for meeting financial responsibility requirements. Drivers can file a surety bond or real estate bond with the Iowa Department of Transportation or make a deposit with the department. While these alternatives exist, traditional auto insurance remains the most practical and affordable option for most drivers. These alternatives are primarily used by commercial operators or drivers who can't obtain traditional coverage.
How to Lower Car Insurance Costs in Iowa
Below we've created a step-by-step guide to lowering your car insurance costs:
- 1Decide on coverage needs beforehand
Deciding on your coverage needs beforehand is important so you're not oversold on too much coverage. Consider your financial situation, driving habits, car details and your risk tolerance when making this decision.
- 2Research costs and discounts
To save money for your particular profile, know your average costs for your desired coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance or other bundles for the most balanced perspective.
- 3Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4Compare quotes through multiple means
Compare multiple company quotes to find the best deal possible. Use different methods of getting quotes like online comparison sites and independent agents since pricing varies widely by method.
Cost of Car Insurance in Iowa: Bottom Line
Iowa car insurance costs are among the most affordable in the United States, but smart shopping can still help you save even more. Decide on coverage needs beforehand, do thorough research and compare quotes from the right insurers for your situation.
Cost of Car Insurance in Iowa: FAQ
Below are answers to frequently asked questions about Iowa car insurance costs:
How much is Iowa car insurance per month?
Per month, Iowa car insurance costs $32 for minimum coverage and $97 for full coverage policies. However, rates can range anywhere from $28 to $323 monthly depending on your unique driver profile and coverage choice.
What factors affect Iowa car insurance costs?
Driving history, age, location, vehicle type, coverage levels, credit score and annual mileage determine rates. Urban areas and younger drivers face higher premiums.
Why is Iowa car insurance so affordable?
Iowa operates a traditional at-fault system with mandatory uninsured motorist coverage and approximately nine percent uninsured drivers. The state ranks seventh nationally for hail claims, with 177 hail events annually causing $27.7 million in losses. Despite severe weather challenges, Iowa maintains competitive rates with full coverage averaging $1,630 annually, well below national averages. Modified comparative negligence laws allow fault sharing in accidents.
How expensive is Iowa car insurance?
With rankings of fourth for minimum coverage affordability and 11th for full coverage, Iowa stands out as one of the more budget-friendly destinations for auto insurance across the U.S.
How We Determined Iowa Car Insurance Costs
We used the following profile and modifications of this profile to determine Iowa auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- CBS 2 Iowa. "Iowa's Forecast: Hail, Wind and Soaring Home Insurance Bills." Accessed October 31, 2025.
- Nolo. "Iowa Car Insurance Laws." Accessed October 31, 2025.