Progressive offers the cheapest car insurance in Iowa overall. But depending on the type of driver you are, American Family or West Bend Mutual might be more affordable.
MoneyGeek ranked the best auto insurance companies in Iowa for drivers who value both affordability and quality of service.
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Cheapest Minimum Liability Car Insurance in Iowa (September 2023)
On average, the following are the cheapest auto insurance companies offering minimum coverage policies in Iowa:
- Progressive: $183 per year
- West Bend Mutual: $189 per year
MoneyGeek found that Allstate had the most expensive minimum coverage premiums, at approximately $466 annually.
Minimum insurance coverage requirements in Iowa are limited to bodily injury liability and property damage liability.
Only the damages you cause to others are covered under minimum coverage policies. Your car is not covered. Comprehensive and collision insurance, generally referred to as a full coverage policy, can provide you with better protection.
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Cheapest Full Coverage Car Insurance in Iowa (September 2023)
On average, the cheapest full coverage auto insurance policies in Iowa are from:
- West Bend Mutual: $557 per year
- Auto-Owners: $706 per year
Grinnell Mutual has the most expensive full coverage policy in Iowa, with yearly premiums of approximately $1,312.
Typically, full coverage is more expensive. Compared with the cheapest minimum coverage, which costs around $183 annually, West Bend Mutual's full coverage policy is roughly $374 more expensive.
Full coverage provides greater financial protection, especially in the event of a collision with another vehicle or an off-road occurrence. Vandalism and flooding are often covered by a full coverage policy.
Your premiums are significantly influenced by how much auto insurance you need. MoneyGeek's sample full coverage policy with liability protection includes:
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
If you want to save money, you could drop your comprehensive and collision coverage or raise your deductible. However, you may lack adequate coverage in the event of an accident.
How to Compare Cheap Iowa Car Insurance Quotes Online
Typically, auto insurance rates can be obtained online. However, some insurance carriers require you to submit personal information, and these applications might take up to 15 minutes to complete. Comparing premiums can be time-consuming because you must provide information to each company's website.
MoneyGeek provides an auto insurance calculator so that you do not have to share your personal information with many companies. Simply enter your driving record, age and gender to obtain an estimate of the cheapest options. This can help you get started with your search for a car insurance company.
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Cheapest Car Insurance in Iowa by Age (September 2023)
Car insurance rates in Iowa change depending on age. Allstate and West Bend Mutual on average are cheapest for family members of different ages.
Cheapest Car Insurance in Iowa for Teens and Their Families (September 2023)
In Iowa, the average cheapest auto insurance companies for teenagers on their parents' coverage are:
- Allstate: $1,644 per year for male and State Farm for $1,332 for female teens
- State Farm: $1,698 per year for male teens and Allstate for $1,644 per year for female teens
Travelers has the most expensive policy for teenage males, at an average of $2,217 by the provider, whereas Farmers has the most expensive rates for teenage females, at an average of $1,992.
A teen's car insurance rates decrease with age anywhere in the U.S. including Iowa, with 19-year-olds having to pay the cheapest premiums. In the state, the provider with the lowest rate for 19-year-old males is Allstate ($1,217 per year).
These rates are for a 16-year-old on a family auto insurance policy. Adding a teenager to a family policy is frequently more economical than purchasing a separate policy. For instance, an individual policy for a 16-year-old driver in Iowa typically costs roughly $2,281 more than adding him to a family policy.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens. This rate difference is not as notable when drivers reach their 20s and beyond.
Families with young drivers might be eligible for discounts that lower their rates. All of the car insurance providers in Iowa we looked into provide good student discounts and distant student discounts with the exception of GEICO, which only offers good student discounts.
Cheapest Car Insurance in Iowa for Young Adults (September 2023)
On average, the auto insurers offering the cheapest full coverage car insurance for Iowa drivers in their 20s are:
- West Bend Mutual: $667 per year
- American Family: $749 per year
Grinnell Mutual is the most expensive insurer in the state, with policies costing around $1,815 annually.
Younger drivers typically pay more for auto insurance than middle-aged drivers. In Iowa, young drivers pay approximately $110 more for the cheapest coverage than drivers who are 40 years of age.
Cheapest Car Insurance in Iowa for Seniors (September 2023)
The cheapest car insurance providers for senior drivers in Iowa are, on average:
- West Bend Mutual: $558 per year
- Auto-Owners: $632 per year
The most expensive rates are offered by Grinnell Mutual, at approximately $1,088 per year.
In Iowa, senior drivers pay $1 less than their middle-aged counterparts. However, prices are typically higher for drivers in their 70s and 80s.
Senior drivers may qualify for discounts from some auto insurance providers. In Iowa, these include Allstate, GEICO, Farmers and American Family. It is advisable to compare your options in order to find the most affordable insurer.
Cheapest Car Insurance for Higher Risk Drivers (September 2023)
Auto insurance premiums in Iowa are often more expensive for drivers with traffic violations. Based on MoneyGeek’s study, West Bend Mutual is the cheapest option for people with poor credit and for drivers with tickets.
American Family has the best prices for drivers with sports cars, accidents on their record, or DUIs.
Cheapest after a ticket: West Bend Mutual ($724 per year)
Cheapest after an accident: American Family ($717 per year)
Cheapest after a DUI: American Family ($841 per year)
Cheapest for poor credit: West Bend Mutual ($1,017 per year)
Cheapest for sports cars: American Family ($655 per year)
Cheapest Car Insurance in Iowa After a Ticket
On average, the following car insurance providers offer affordable prices to customers with speeding tickets in Iowa:
- West Bend Mutual: $724 per year
- American Family: $841 per year
Grinnell Mutual is the most expensive insurer, with an average annual premium of $1,358.
The cost of auto insurance in Iowa can increase by around $203 for drivers with traffic tickets.
Cheapest Car Insurance in Iowa After an Accident
The following insurers provide the cheapest average rates in Iowa for drivers with at-fault accidents on their driving records:
- American Family: $717 per year
- State Farm: $922 per year
The most expensive rate is offered by GEICO, which costs around $1,454 annually for the same driver profile.
After an at-fault accident in the state, auto insurance premiums can increase by an average of $304.
Cheapest Car Insurance in Iowa After a DUI
MoneyGeek discovered the most affordable average rates for DUI-convicted drivers in Iowa are:
- American Family: $841 per year
- State Farm: $864 per year
Grinnell Mutual offers the highest rates in the state for drivers with a DUI conviction, at around $3,131.
If a driver gets a DUI, their annual rates can jump by an average of $598 in Iowa.
Cheapest Car Insurance in Iowa for Drivers With Poor Credit (September 2023)
The following are the cheapest average auto insurance providers for Iowa drivers with poor credit:
- West Bend Mutual: $1,017 per year
- American Family: $1,093 per year
Your credit score plays a significant role in determining your premiums. Grinnell Mutual charges approximately $2,807 per year to individuals with poor credit, making it the most expensive provider in the state.
Individuals with poor credit (below 580) typically pay $698 more than those with good credit (750 and above).
Since drivers with poor credit have a greater likelihood of submitting a claim, insurance companies charge them higher premiums. Although this is not permitted in some states, it is in Iowa.
Improving your credit score is an excellent strategy to obtain a lower rate. Alternatively, you can compare premiums or search for insurance companies that provide common discounts.
Cheapest Car Insurance in Iowa for Sports Cars (September 2023)
On average, the following are the cheapest car insurance providers for sports car owners:
- American Family: $655 per year
- Auto-Owners: $710 per year
Sports car drivers with GEICO pay approximately $1,176 per year, making it the most expensive provider in the state. Due to the higher maintenance and replacement expenses associated with sports cars, car insurance for sports car owners can be more expensive depending on the state.
In Iowa, insuring a Toyota Camry LE is $40 less expensive than insuring a sports car.
While we picked a Ford Mustang as an example vehicle, insurance prices will vary depending on the car model. Sports, electric and luxury vehicles are often the most expensive to insure. However, in Iowa, this is not always the case.
Cheapest Car Insurance in Iowa for Military Drivers (September 2023)
MoneyGeek found that West Bend Mutual offers the most affordable auto insurance in Iowa for active-duty military personnel and veterans, with an average annual premium of $557.
MoneyGeek also gathered quotes from USAA, a company that specializes in providing services for veterans and active-duty military personnel and their families. The average premium for a USAA policy is $692 per year.
West Bend Mutual
- $557 per year
- Cheapest option among 16 insurers
Although West Bend Mutual doesn't offer military discounts, you can save money in other ways. For example, you are eligible for discounts if you are a good student, insure multiple cars and are a safe driver for three years.
Cheapest Car Insurance in Iowa by City
The cost of auto insurance might differ significantly depending on the city in which you reside. Residents in riskier areas in Iowa, such as those with a higher crime rate, may be required to pay higher insurance premiums.
Cedar Rapids has the most affordable rates for full coverage. West Bend Mutual is the cheapest insurer in this city, with annual rates averaging $578. Davenport is the second-cheapest city, at around $584 per year with West Bend Mutual.
Drivers in Des Moines may have to pay more for car insurance because West Bend Mutual charges the highest premiums in this city, which average around $601 per year.
Below, we provide a breakdown of the state's average auto insurance rates by location.
Car Insurance in Iowa: What You Need to Know
All drivers in Iowa are required to acquire auto insurance that meets the state's minimum requirements. This consists of coverage for personal injury and property damage. Determining how much auto insurance you need helps guarantee that you are adequately protected in an accident.
Iowa Car Insurance Requirements
You have to purchase the minimum necessary car insurance in Iowa. This includes liability for bodily injury and property damage. Purchasing the minimum state-mandated coverage reduces costs but offers less protection in an accident.
Those who commit serious traffic violations in Iowa are required to have an SR-22 form. If you need an SR-22, your required coverage and premiums may increase.
MoneyGeek recommends readers purchase as much liability coverage as possible for added protection.
Bodily Injury Liability
Drivers in Iowa are required to have a minimum of $20,000 worth of bodily injury liability insurance per person and $40,000 worth of bodily injury liability insurance per accident. Iowa drivers who are found to be at fault in a car accident are required to pay for any medical expenses that exceed these limits.
Property Damage Liability
If you are at fault in an accident and have the minimum required insurance coverage, you are responsible for paying any additional costs over the $15,000 limit. Property damage coverage can pay for the expense of repairing another vehicle or another piece of property.
MoneyGeek suggests increasing bodily injury liability insurance limits to $100,000 per person, $300,000 per accident and $100,000 per accident for property damage.
Comprehensive and collision insurance gives you better protection in a covered event. Comprehensive insurance can protect you against costs associated with off-road incidents, including vandalism and animal damage. Collision insurance helps compensate for vehicle damage in the event of an accident.
Those with expensive vehicles are encouraged to purchase comprehensive and collision insurance, even if they don’t have to.
Car Insurance Alternatives in Iowa
There are other ways to comply with Iowa's insurance regulations. Consider buying a bond or making a security deposit if it meets the requirements. Multiple-vehicle owners may also opt for self-insurance.
A surety bond ensures that the driver will fulfill their financial commitments if they cause an accident and need to pay liability expenses.
The Iowa Department of Motor Vehicles allows drivers who cannot provide proof of car ownership to submit a cash or indemnity bond.
Non-owner auto insurance in Iowa is particularly beneficial for individuals who regularly rent or borrow vehicles. It is also suitable for car-sharing drivers and includes the minimum coverage required by the state.
FAQs About Car Insurance in Iowa
Auto insurance can be a complicated subject, so it is normal to have questions regarding its quality and cost. MoneyGeek provides answers to frequently asked questions regarding auto insurance in Iowa.
Expert Advice on Finding Cheap Car Insurance in Iowa
To help you find credible and accurate insight on car insurance in Iowa, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- What are the key factors drivers in Iowa should look for when searching for the best auto insurance coverage?
- What steps can drivers in Iowa take to find affordable car insurance?
Assistant Professor of Business at Northwestern College
Faculty Instructor and Certified Financial Planner, University of Northern Iowa
About Mark Fitzpatrick
- Iowa Department of Motor Vehicles. "Motor Vehicle Division." Accessed December 12, 2022.