How Much Is Car Insurance in Iowa? (2023)

Insurance premiums are highly dynamic. Factors such as company, age, credit score, coverage levels and driving history can affect your quoted price.

For instance, State Farm is the cheapest auto insurer for an average full coverage policy at $509 per year. But the same policy costs more for young adults at $639 a year and less for seniors at $448.

The average cost of car insurance in Iowa is $791 per year. However, this price is subject to change based on age, driving history and coverage levels, among other factors.

To better show the impact of different driver attributes on auto insurance rates, here are the various premiums charged to Iowa drivers based on their driving records.

• Clean record: $791 per year
• Speeding ticket: $986 per year
• At-fault accident: $1,076 per year
• DUI: $1,336 per year

These are for full coverage policies. Getting a minimum coverage will yield a lower premium.

Iowans pay less than the national average of $1,021 annually for car insurance. Fewer car thefts, cheaper company base rates, less dense population and less traffic may contribute to more affordable costs. If you live in Iowa and have a high car insurance premium, it could be due to factors like your driving record or age.

The average cost of auto insurance in the state should, at most, be used as a reference because the exact rates vary depending on the insurer. State Farm is the cheapest auto insurer in Iowa, with a minimum coverage policy costing $144 yearly ($509 annually for full coverage). In contrast, Allstate's minimum coverage policy is the most expensive at $403 per year ($712 annually for full coverage).

While minimum liability plans are less expensive, you may still be able to find cheap full coverage policies with a little bit of research and comparison shopping.

Insurance for a car in Iowa can cost anything from $249 annually for minimum coverage to $965 annually for comprehensive coverage with high liability limits.

Adding collision and comprehensive coverage to your auto insurance policy might add hundreds of dollars to your annual premiums. Opting for a bigger deductible on a full coverage policy is one way to reduce the overall premium.

The most affordable option for auto insurance in Iowa will be minimum coverage policies. This insurance includes the lowest liability limits available and excludes comprehensive and collision coverage.

Many insurance companies provide increased liability limits, using shorthand such as 50/100/50 or 100/300/100, in exchange for higher premiums. A 50/100/50 liability coverage means that your insurer would pay up to the following:

• $50,000 in bodily injury liability insurance per person
• $100,000 in bodily injury liability insurance per accident
• $50,000 in property damage liability insurance per accident

The most common liability limit insurance companies provide is 300/500/300. Liability insurance pays for compensation for other people's injuries or damaged properties, whereas comprehensive and collision insurance pays for repairs to your own car in the event of an accident. These are the components that make up a full coverage policy.

If you're a young or inexperienced driver, your insurance premiums could be significantly higher than average. The cost of a comprehensive insurance policy in Iowa often lowers with policyholders' ages, as shown in the list below.

• 22–29: $1,006 per year
• 30–59: $791 per year
• 60+: $712 per year

Although car insurance for new drivers is the most expensive, it tends to level off for those in their 30s to 50s before increasing again after age 60.

In Iowa, the average annual premium for car insurance for a 16-year-old male is $2,009, significantly higher than the average cost for drivers of all ages. The yearly premium for an individual policy is $4,357, which is considerably more.

As drivers mature and accumulate driving experience, they typically qualify for lower insurance rates. On average, a 19-year-old will pay $1,555 per year for coverage under a family plan, while a 22-year-old will pay $1,291.

Iowa is one of the states where there is a noticeable gender gap in teen insurance rates. Compared to the average cost of a family plan for a male teen, the cost for a female teen of the same age is $199 cheaper, at $1,810 per year.

You can find affordable car insurance for Iowa teens by shopping around and comparing quotes from multiple providers.

Insurance for a brand-new vehicle in Iowa costs an average of $1,006 annually, about 27% higher than the $733 annual average premium paid to cover older cars. Newer vehicles typically have higher insurance premiums because of their higher actual cash value (ACV), repair costs and theft risks.

Insurers look at the car's ACV when deciding how much to pay for repairs after a crash or theft. Your older car will cost less to insure due to its lower ACV and the lower claims that insurance will pay out. Newer vehicle owners in Iowa should consider buying full coverage insurance to protect themselves from financial ruin in the event of an accident or injury to a third party.

Drivers with offenses on their record will pay more for auto insurance than drivers with clean records. Iowa policyholders can expect to pay the following rates for comprehensive car insurance based on their driving histories:

• Clean record: $791 per year
• Speeding ticket: $986 per year
• At-fault accident: $1,076 per year
• DUI: $1,336 per year

The cost of insurance will often reflect the severity of the traffic violation on your record. The insurance premium increase caused by a DUI is more than the increase incurred from speeding tickets. Comparison shopping is necessary to find relatively cheap car insurance in Iowa for drivers with poor records.

Your credit score plays a significant role in determining the cost of your car insurance. Drivers with poor credit in Iowa pay an average of $1,176 per year for a minimum coverage policy, while those with excellent credit pay only $560. As shown below, Iowa drivers' average costs will vary depending on their credit rating:

• Excellent: $560 per year
• Good: $682 per year
• Fair: $839 per year
• Below fair: $987 per year
• Poor: $1,176 per year

The best way for Iowa drivers with poor credit to find affordable car insurance is to shop around and see how different insurers treat drivers with poor credit.

Your auto insurance rates in Iowa can vary widely depending on your specific location. For example, Davenport and Des Moines drivers will pay an average of $792 annually for full coverage, while Cedar Rapids drivers will pay the least at $770. Higher traffic and population densities are typically accompanied by higher car insurance premiums.

Car insurance premiums could change from state to state and person to person. To get you started, MoneyGeek has answered some of the most frequently asked questions concerning auto insurance rates in Iowa.