Is car insurance required in Iowa?

In Iowa, car insurance is mandatory, and all drivers must have at least 20/40/15 liability insurance coverage. Iowa's drivers who don't have car insurance or fail to produce proof of valid insurance may face fines or penalties like confiscating registration plates, suspension of vehicle registration and vehicle impoundment.

Do you need car insurance to register a car in Iowa?

No. You don’t need car insurance to register your car in Iowa. However, the state law requires you to only drive a vehicle with valid car insurance meeting the minimum state liability coverage.

What is “basic” car insurance in Iowa?

Basic car insurance refers to a car insurance policy that meets Iowa's minimum liability coverage. For Iowa's drivers, the state law requires at least 20/40/15 liability coverage on their vehicles. If you're caught driving without the state's required vehicle insurance, you could face fines and penalties.

Does insurance follow the car or driver in Iowa?

The type of insurance coverage has a significant impact on the answer to this question . A liability insurance policy and personal injury protection coverage, for example, always accompany the insured, whereas comprehensive and collision coverage always follows the insured vehicle. The insurance company and the terms of the policy may also affect this. For example, some Iowa insurance firms refuse to cover drivers whose names are not listed on the policy.

Can you get car insurance without a license in Iowa?

Similar to purchasing a car without having a driver's license, you can also [buy an auto insurance policy without a license](https://www.moneygeek.com/insurance/auto/how-to-get-car-insurance-with-no-license/) in Iowa. However, you must name yourself an excluded driver and someone with a valid driver's license as the primary driver and a co-owner of the vehicle. Keep in mind that your driving record will determine your insurance rates. You'll also be regarded as high-risk if you don't have a driving record to prove otherwise.

Is Iowa a no-fault state and what does this mean?

No, Iowa is not a no-fault state but uses an at-fault system. This means that Iowa's car insurance laws allow insurers to consider who was at fault for the accident before paying for the damages. As a result, Iowa’s law does not mandate drivers to have PIP (personal injury protection) coverage. Instead, the insurance provider of the driver at fault for the accident will pay for the losses.

Is PIP coverage required in Iowa?

Since Iowa is not a no-fault state, you don't need PIP coverage to drive a car in the state. Personal Injury Protection (PIP) coverage pays for medical expenses and rehabilitative costs for you and your passengers in a car accident, regardless of who was at fault for it. As per Iowa law, the driver who caused the accident is the one responsible for the losses. Therefore, their insurance company compensates the injured third parties up to the limits specified in their policy.

Does Iowa require uninsured motorist insurance?

In Iowa, uninsured motorist coverage is not required. However, purchasing this insurance is a good idea for extra protection, so you’ll be covered if your vehicle gets involved in an accident with an uninsured motorist.

Does Iowa Allow for diminished value compensation after an accident?

Because Iowa is a diminished value state , you may be entitled to the reduced value of your car following a car accident. You should file the claims within two years of the accident date. If you are not the at-fault party in the accident and have uninsured motorist coverage, you can file a diminished value claim. You can claim the difference in value from the at-fault driver’s insurance provider in Iowa.

How do car insurance requirements change after a DUI in Iowa?

After a [DUI](https://www.moneygeek.com/insurance/auto/best-cheap-car-insurance-after-a-dui/) in Iowa, your car insurance premiums will increase significantly and your license may get suspended. Each insurer quotes differently for those with DUIs in their record. You can find a reasonable deal if you spend some time comparing the quotes from multiple insurers. Those not having car insurance must file an SR-22 through their insurance companies. It proves your financial responsibility and confirms that you meet the state's minimum insurance requirements.

What is a CARCO inspection and is it required?

A CARCO inspection is a free photo assessment of your car that confirms its current condition and will help reduce the cost of property damage insurance coverage. It includes information such as the vehicle's mileage, physical condition, available options and installed security features. This examination roughly takes 15 minutes to complete. However, on the other hand, Iowa is not one of the states that mandate CARCO inspections .

Iowa Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

Iowa auto insurance laws require drivers to carry a minimum liability insurance coverage of 20/40/15 on their vehicles. This means your insurance coverage must include at least $20,000 per person in bodily injury, $40,000 per accident and $15,000 in property damage. If you fail to meet the state's minimum insurance requirements, you may face fines, penalties, license suspension or even time in jail. The state minimum coverage only protects other individuals or property involved in an accident you caused. However, an insurance plan containing extended coverage, like PIP (personal injury protection) and collision coverage, can likely cover everything, including you and your vehicle.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Iowa
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Iowa
FAQs

What Is the Minimum Car Insurance Requirement in Iowa?

To legally drive a car, nearly every state in the US requires its motorists to carry some form of vehicle insurance coverage. How much car insurance do you need in Iowa can be one of the first questions you wonder. Iowa's car insurance laws require its drivers to have the following minimum liability insurance coverage:

$20,000 per person for bodily injury
$40,000 per accident for bodily injury
$15,000 per accident for property damage

Iowa's minimum car insurance limits are listed as 20/40/15. These data only represent the state's minimum coverage requirements. The amounts are the most your insurer will pay in settlement for a claim.

The limits can be increased as needed. For example, suppose the average cost of a new car damaged in an accident you caused exceeds $15,000. In that case, the minimum property damage limits will be insufficient. As a result, it is preferable to raise the liability limits as much as you can afford.

What Does This Minimum Coverage Mean?

In Iowa, liability coverage is required by law. It covers injuries and other losses to another motorist, their passengers and their property in the event of an accident you caused. Motorists driving in Iowa must have a minimum of BI & PD (Bodily Injury and Property Damage) liability coverage with limits of 20/40/15. This implies that your insurance policy must have a least $20,000 in bodily injury coverage per person, $40,000 in total coverage for all people involved in the accident and $15,000 in property damage.

The bodily injury coverage limit per person is the most your insurance company will pay for a single person injured in a car accident caused by you. On the other hand, the bodily injury coverage per accident specifies the maximum amount of compensation your insurer will pay for all persons injured in an accident. The property damage limit represents the maximum amount payable for damage to the other person's property, such as their car, in an accident.

However, you and your vehicle won't be insured with a minimum liability coverage plan. For example, suppose you want to ensure that you and your vehicle are protected in the event of an accident. In that case, you must obtain personal injury protection (PIP) coverage to pay for any injuries sustained in the accident and collision coverage to pay for damage to your vehicle. PIP coverage protects not just you but also other passengers in your car.

How Much Does the Minimum Car Insurance Cost in Iowa?

Your auto insurance rates in Iowa can be influenced by various factors, including your age, ZIP code, driving history, credit score and the make and model of the vehicle you drive. Besides, the rates also differ amongst the state's various car insurance companies.

USAA offers the cheapest car insurance in Iowa for $226 annually. However, USAA policies are only available to current and veteran military members and their families. And that makes GEICO the cheapest widely available insurer for Iowa’s drivers. Moreover, its most affordable policy is available at just $4 more than USAA's rate at $232 annually.

Cheapest Minimum Liability Car Insurance in Iowa

Cheapest Minimum Car Insurance in Iowa

Company
Annually
Monthly
1.
USAA
$226
$19
2.
GEICO
$232
$19
3.
State Farm
$273
$23
4.
Allied
$300
$25
5.
Progressive
$320
$27
6.
Farm Bureau Mutual (IA Group)
$323
$27
7.
Grinnell Mutual
$388
$32
8.
Farmers
$390
$33
9.
MetLife
$396
$33
10.
American Family
$439
$37
11.
Travelers
$486
$41
12.
Allstate
$488
$41

These prices are only estimates based on rates for an average Iowa driver and should not be used to compare insurance prices.

For this study, MoneyGeek compared rates for Iowa's minimum liability coverage of 20/40/15 from various insurers for a 40-year-old male resident driving a 2010 Toyota Camry with a clean driving record and good credit score.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Iowa.

What Is the Minimum Car Insurance Requirement in Iowa While Leasing a Car?

If you operate a leased car, the leasing company's minimum coverage requirements can differ from the state's. The lessor companies expect you to return the vehicle in the same condition the company provided. You should maintain adequate insurance coverage throughout the lease agreement term. Most companies in the state demand you to have a full coverage car insurance policy with minimum liability limits of 100/300/50 before leasing a car. The requirements can be different for each leasing company.

If you have already leased a car, contact the company to know about their minimum insurance requirements. And, if you’re new to leasing, you should understand the terms of the lease agreement and Iowa's car lease insurance requirements before choosing a leased car.

Uninsured drivers account for 11.3% of Iowa's drivers. Even if the rate isn't that high, MoneyGeek suggests purchasing a full coverage auto insurance policy in Iowa, which will protect you from bodily injury and damage to your car if an uninsured motorist hits you. If you're not sure how much car insurance coverage you need in Iowa, go with our minimum liability limit recommendation of 50/100/50.

Penalties for Driving Without Car Insurance in Iowa

Iowa's law does not allow a person to operate an uninsured vehicle or drive without minimum liability insurance in their name. Driving without active car insurance in Iowa may attract fines or other penalties. If you're involved in an accident without valid car insurance, severe penalties, such as suspension of license, removal of license plates, vehicle impoundment, filing of SR-22 and community service.

Law enforcement officers in Iowa can pull you over and demand proof of financial responsibility (minimum liability coverage or more) at traffic stops or checkpoints. If you’re caught driving without insurance, you can be fined $250 and asked to provide proof of insurance in the form of an active insurance policy or SR-22 form. If you fail to submit this within 30 days, you could face one or more of the penalties mentioned earlier.

The penalties will be higher if you fail to provide proof of valid insurance after an accident. In addition, if the personal injury and property damage costs related to the accident exceed $1,500, your license and vehicle registration may be suspended. It can remain suspended for up to 12 months. Your vehicle may also get impounded and any other cars registered in your name can be suspended.

If you are convicted of any traffic infraction while driving without valid car insurance in Iowa, the following penalties apply:

$250 fine or community service, removal of license plates, suspension of vehicle registration and vehicle impoundment after driving without insurance.
For driving without insurance and being involved in an accident, a $250 mandatory fine, vehicle impoundment, suspension of license and vehicle registration (of all vehicles) up to one year if medical bills and damage costs exceed $1,500, after being involved in an accident without valid insurance.

If your driving license and privileges are suspended for driving without insurance, you can reinstate the privileges by buying a valid car insurance policy and filing an SR-22 through your insurance provider. However, you’ll have to pay $15 as an administrative fee for the reinstatement. Any towing and storage costs in case of vehicle impoundment also ensue. The motor vehicles department will then send you new license plates and a new registration receipt for your car.

If you’re involved in an accident without holding valid insurance, and you can’t provide proof of insurance, the reinstatement process can be difficult. You’ll be asked to submit proof of insurance or file SR-22 through your insurance provider within 30 days of the date of the accident. After SR-22 submission, there will be a $250 fine, $15 administrative fee, $20 license renewal fee and $200 civil penalty for reinstatement. You may also have to pass a driving exam, knowledge test and vision screening test to have your license and registration reinstated. In addition, in case of vehicle impoundment, towing and storage charges will be applicable.

The reinstatement requirements after each conviction can be as follows:

Driving without insurance: Proof of insurance, $15 administrative fee, towing and storage charges (if applicable), SR-22 certificate after driving without a license.
Accident while driving without insurance: Proof of insurance, $15 administrative fee; $200 civil penalty; $20 license renewal fee; towing and storage charges (if applicable); SR-22 certificate for two years; passing a driving exam, knowledge, vision screening test.

Frequently Asked Questions About Car Insurance in Iowa

Learn More About Car Insurance

About Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

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Farmers. "CARCO Inspections." Accessed July 12, 2021.
Iowa.gov. "Automobile Insurance." Accessed July 12, 2021.
IOWADOT. "Driver’s License/ID - Accident Reports." Accessed July 12, 2021.
Insurance Information Institute. "2020 Insurance Fact Book." Accessed July 12, 2021.
Insurance Information Institute. "Background on: Compulsory Auto/Uninsured Motorists." Accessed July 12, 2021.
Insurance Information Institute. "Facts + Statistics: Uninsured motorists." Accessed July 11, 2021.
Kelley Blue Book. "Penalties for Driving without Car Insurance by State." Accessed July 12, 2021.