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The Best Cheap Car Insurance Companies for Iowa Drivers in 2020

Most Iowa drivers will be able to choose from the five top-rated auto insurance companies when getting quotes. Below, you’ll see the estimated cost for the average driver per month from each company. Getting a free car insurance quote that’s specific to your situation can help you make sure you’re getting the right coverage and all the discounts you’re eligible for.

Company
Amount
1. GEICO
In 2020, GEICO ranked #1 in Iowa for the cheapest car insurance on average.
$473
per year
2. USAA
In 2020, USAA ranked #2 in Iowa for the cheapest car insurance on average.
$614
per year
3. State Farm
In 2020, State Farm ranked #3 in Iowa for the cheapest car insurance on average.
$616
per year
4. Allied
In 2020, Allied ranked #4 in Iowa for the cheapest car insurance on average.
$673
per year
5. Progressive
In 2020, Progressive ranked #5 in Iowa for the cheapest car insurance on average.
$730
per year

The monthly premiums provided in the table above are approximate and may not be the same price you receive. All quotes provided by the Iowa auto insurance company will be tailored to your specific situation and household vehicles. There are a number of factors that go into pricing car insurance including age, gender, marital status, driving history, type of vehicle, miles driven and household members.

Which Car Insurance Company in Iowa is the Cheapest for You?

The factors used to determine auto insurance rates mean that quotes are highly personalized to each individual and their household. This sorting tool can help you compare car insurance companies to find the best and most affordable in Iowa for your personal needs. However, these rates are only an estimate. You should still reach out to the companies directly to get an accurate, personalized quote with the right coverages and discounts for the cheapest car insurance quotes.

The Best Car Insurance Companies in Iowa for 2020

MoneyGeek uses a unique ranking system, which is based on a combination of ratings from reputable outlets like J.D. Power and AM Best. These scores include the financial strength of the company, affordability, customer satisfaction and how well they handle the claims process.

Expand all Rankings +

1

USAAScore: 100
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

2

Auto-Owners Insurance CoScore: 97.5
+

5/5

User Satisfaction

4/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

3

GEICOScore: 92.5
+

4/5

User Satisfaction

3/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

4

AllstateScore: 85
+

4/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

5

TravelersScore: 85
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A++

Financial Stability

6

ProgressiveScore: 85
+

3/5

User Satisfaction

3/5

Claims Ratings

4/5

Affordability

A+

Financial Stability

7

AAAScore: 82.5
+

3/5

User Satisfaction

3/5

Claims Ratings

4/5

Affordability

A

Financial Stability

8

State FarmScore: 80
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A

Financial Stability

9

American FamilyScore: 77.5
+

3/5

User Satisfaction

2/5

Claims Ratings

2/5

Affordability

A+

Financial Stability

10

SafecoScore: 77.5
+

2/5

User Satisfaction

4/5

Claims Ratings

2/5

Affordability

A

Financial Stability


Market Share by Company

The National Association of Insurance Commissioners lists the largest auto insurance companies in Iowa as State Farm, Progressive and Nationwide. The table below shows how much of the state is insured by the top companies.

Company
Market Share
1. State Farm
21.05%
2. Progressive
17.62%
3. Nationwide
9.17%
4. Farm Bureau Mutual (IA Group)
6.79%
5. American Family
6.42%

Cheapest Car Insurance for Drivers With a DUI in Iowa

On average, more than 900 people are killed in accidents involving alcohol each year in Iowa. In data collected and published by the Centers for Disease Control and Prevention, 3.1% of residents admitted to driving after drinking too much compared to the national average of 1.9%. Getting a DUI can have a huge impact on a person’s life, with possible jail time, fines and it can mean no longer being eligible for the cheap car insurance rates.

The following table features estimated rates for drivers in Iowa who receive a DUI.

Company
Amount
1. State Farm
In 2020, State Farm ranked #1 in Iowa for the cheapest car insurance for drivers with a DUI.
$671
per year
2. American Family
In 2020, American Family ranked #2 in Iowa for the cheapest car insurance for drivers with a DUI.
$754
per year
3. Progressive
In 2020, Progressive ranked #3 in Iowa for the cheapest car insurance for drivers with a DUI.
$795
per year
4. GEICO
In 2020, GEICO ranked #4 in Iowa for the cheapest car insurance for drivers with a DUI.
$944
per year
5. USAA
In 2020, USAA ranked #5 in Iowa for the cheapest car insurance for drivers with a DUI.
$996
per year

Getting the best price for auto insurance in Iowa with a DUI can be hard, but it’s not impossible. A DUI can impact rates for as long as it stays on your driving record. Preventing future DUIs can help you maintain the most affordable rates.

Cheapest Car Insurance for IA Speeding or Distracted Driving Tickets

Distracted driving is a common issue in all states and includes texting or talking on a cell phone, having a conversation with passengers or eating while driving. Getting a ticket for speeding or distracted driving can mean you’re no longer eligible for cheap car insurance in Iowa. The following table showcases what drivers who get a ticket for speeding or distracted driving can expect to pay.

Company
Amount
1. GEICO
In 2020, GEICO ranked #1 in Iowa for the cheapest car insurance for distracted drivers.
$493
per year
2. State Farm
In 2020, State Farm ranked #2 in Iowa for the cheapest car insurance for distracted drivers.
$671
per year
3. USAA
In 2020, USAA ranked #3 in Iowa for the cheapest car insurance for distracted drivers.
$752
per year
4. American Family
In 2020, American Family ranked #4 in Iowa for the cheapest car insurance for distracted drivers.
$754
per year
5. Allied
In 2020, Allied ranked #5 in Iowa for the cheapest car insurance for distracted drivers.
$806
per year

A ticket may mean you can’t get the best rates, but that doesn’t mean you can’t still get affordable car insurance in Iowa. Any ticket you get can raise your rates for as long as the ticket stays on your driving record. Distracted Driving can have a lifelong impact on yourself and others. Avoiding distractions and maintain safe habits can help save you money on tickets, car insurance and more.

Cheapest Car Insurance Companies in IA for Drivers With Bad Credit

Car insurance companies in many states consider credit scores when providing quotes, and Iowa is no different. According to Credit Karma, payment history, total debt and length of credit history are the top three criteria used to determine your auto insurance credit score. The average credit score in Iowa is 720, according to Experian, which is higher than the national average of 703. This rate means for most Iowans, getting cheap auto insurance quotes should be easier than in other states.

The following table reflects estimates of what drivers in Iowa with bad credit may have to pay for car insurance.

Company
Amount
1. GEICO
In 2020, GEICO ranked #1 in Iowa for the cheapest car insurance for drivers with poor credit.
$653
per year
2. Allied
In 2020, Allied ranked #2 in Iowa for the cheapest car insurance for drivers with poor credit.
$922
per year
3. USAA
In 2020, USAA ranked #3 in Iowa for the cheapest car insurance for drivers with poor credit.
$987
per year
4. Allstate
In 2020, Allstate ranked #4 in Iowa for the cheapest car insurance for drivers with poor credit.
$1,128
per year
5. Progressive
In 2020, Progressive ranked #5 in Iowa for the cheapest car insurance for drivers with poor credit.
$1,205
per year

Drivers with bad credit may not qualify for the cheapest auto insurance rates in Iowa. Improving your credit score can help you get the most affordable car insurance rates with the best coverage.

Cheapest Car Insurance Companies in Iowa for Seniors

Seniors are considered a riskier age group than middle-aged drivers and may see their insurance rates increase over time. In Iowa, the standard driver’s license renewal is eight years, but once you turn 66 it reduces to seven and then lowers annually to two years for every year older you get. Seniors looking for auto insurance in Iowa can expect to pay the following rates.

Company
Amount
1. GEICO
In 2020, GEICO ranked #1 in Iowa for the cheapest car insurance for seniors.
$489
per year
2. State Farm
In 2020, State Farm ranked #2 in Iowa for the cheapest car insurance for seniors.
$594
per year
3. USAA
In 2020, USAA ranked #3 in Iowa for the cheapest car insurance for seniors.
$630
per year
4. Allied
In 2020, Allied ranked #4 in Iowa for the cheapest car insurance for seniors.
$683
per year
5. Farm Bureau Mutual (IA Group)
In 2020, Farm Bureau Mutual (IA Group) ranked #5 in Iowa for the cheapest car insurance for seniors.
$720
per year

Due to age, seniors can have reduced reaction time and a higher likelihood of being involved in collisions. Seniors with safe driving records may be able to find special rates on car insurance in Iowa.

Cheapest Car Insurance for Students

Iowa Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$1,552 INCREASE

This is a difference of 122%.

Iowa teenagers can get their learner's permit as early as the age of 14, which advocacy groups like the Insurance Institute of Highway Safety say is too young — even with a licensed driver in the car. With very young teenagers on the road, family premiums increase. Parents will have to take their young drivers' safety into their own hands. Practicing with them, sharing car responsibilities and creating a parent-teen agreement are great ways to keep your teens in good standing and safe.

There are some ways to keep rates low and qualify for cheap car insurance for young drivers in Iowa: maintain good grades, drive the safest car in the household and keep college students on the family policy (unless the car is in their name). Students who go to college more than 100 miles away from home and don’t take a car may qualify for the best rates on a family plan.

The following chart shows what families in Iowa can expect to pay when looking to add a young driver to their policy.

Company
Amount
1. GEICO
In 2020, GEICO ranked #1 in Iowa for the cheapest car insurance for students.
$1,118
per year
2. Progressive
In 2020, Progressive ranked #2 in Iowa for the cheapest car insurance for students.
$1,515
per year
3. State Farm
In 2020, State Farm ranked #3 in Iowa for the cheapest car insurance for students.
$1,805
per year
4. Allied
In 2020, Allied ranked #4 in Iowa for the cheapest car insurance for students.
$2,152
per year
5. Allstate
In 2020, Allstate ranked #5 in Iowa for the cheapest car insurance for students.
$2,174
per year

Premium Comparison by Student Type

Premium comparison for two adults + 16 years old

car
Average premium for two 2014

Mustang GTs

$4,167
car
Average premium for two 2008

Town and Country Limiteds

$2,678
Anual benefits of minivans:$1,489 saved

This is 36% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$802 DECREASE

This is a savings of 25%.

Potential discounts for teens in Iowa

Impact on annual premium with good student and defensive driving discounts:

coins
$250 SAVED

Iowa students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

male
Average premium for a 19-year-old male
car

$2,705 at home

graduation

$2,137 at school

$568 IN SAVINGS

female
Average premium for a 19-year-old female
car

$2,334 at home

graduation

$1,960 at school

$374 IN SAVINGS

Insurance Rate Information for Military Drivers and Veterans

Most auto insurance companies offer discounts to the hundreds of active-duty military personnel living in Iowa and to the state’s retired veterans. Decide how much coverage you need, possibly greater than the state-required minimum, and then shop around to compare prices.

You'll need to show proof of insurance before the Iowa DMV will sell plates and register the vehicle. Iowa military residents must register their vehicles like any other citizen while temporary military families can maintain their registration in their home state, so long as it's up-to-date. Military personnel and veterans can expect to pay the following for auto insurance in Iowa.

Age savings for Iowa service members

male
25 years$1,136
50 years$860
female
25 years$1,030
50 years$869

$276 Saved
$161 Saved

Median auto insurance for service members: $921

Who Needs Car Insurance in Iowa?

The Iowa Code states that all cars on the road must be registered and insured. Always check with your local DMV for answers to specific questions about unused vehicles or inoperable vehicles.

Proof of Insurance in Iowa

While driving, you'll have to carry a paper version of your insurance card or an electronic version on a smartphone. This proof must include the following information:

  • The driver's name
  • The vehicle identification number
  • Dates for which the policy applies
  • Contact information for the insurer

You must show proof of insurance if you are in an accident or if an officer asks for it.

Minimum Liability Insurance Requirements in Iowa

Iowa, like most states, requires drivers to carry insurance to protect other drivers and their passengers. The minimum liability requirements for auto insurance are:

  • $20,000 to cover another person injured in a collision
  • $40,000 to cover injuries to multiple people in a collision
  • $15,000 to cover property damage in a collision

High-Risk Auto Insurance Program in Iowa

Alternatives to Insurance in Iowa

If you don't want to buy regular insurance, you'll have to find another way to prove that you can pay up to $55,000 to cover any injuries and property damage from a crash. You can do so by buying a bond or making a security deposit. If you own a fleet of cars, you can apply for self-insurance.

Drivers with any of the alternative forms of insurance should know that they don't offer great protection. On the contrary, at-fault drivers will still find themselves paying out in the case of a collision. If you have a bond with a lien against your property, you run the risk of losing that property to pay off another driver's medical bills.

Car Insurance Requirements in Iowa: How Much Coverage Do You Need?

What percentage of drivers in Iowa lack vehicle insurance?

9.7%

National average: 12.6%

Source:

Insurance Information Institute.

Although Iowa only requires basic liability coverage, drivers can benefit by getting a plan with more coverage. Here are three things they should consider:

First, a three-day hospital stay costs $30,000 on average, according to statistics from the federal government. One can see how a catastrophic accident — including hospitalization, rehabilitation and medication — could quickly add up. That's why industry experts recommend purchasing a policy with $100,000/$300,000 limits for bodily injury.

Second, Iowa is prone to flooding due to it sitting between the Missouri and Mississippi Rivers. You may want comprehensive coverage to protect your cars from flooding. Collision coverage will also help in the case of damage caused by other vehicles, including those driven by uninsured drivers.

Finally, insurers automatically sign consumers up for policies to protect them from uninsured/underinsured drivers. You can sign a form to opt out, but you might want to keep this coverage. Nearly one out of 10 drivers on Iowa's roadways lack insurance, and many of those who do have insurance only purchase the minimum, which means they likely wouldn't be able to cover the full costs of a serious crash.

For more on the topic, see our guide to car insurance.

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Sources