Iowa Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Iowa?

  • The state of Iowa requires all motorists to carry at least the minimum liability auto insurance requirements. These requirements include: bodily injury coverage of $20,000 per person, up to $40,000 for all persons per accident, and $15,000 for property damage coverage caused in an at-fault accident in Michigan.
  • Because auto insurance is mandatory in the state of Iowa, all motorists must show proof of Iowa auto insurance to peace officers and other sanctioned officers of the state upon request.
  • Iowa’s Financial & Safety Responsibility Act states that reckless and financially unsound drivers can have their operating and registration privileges suspended. Once the license has been suspended, drivers will have to prove financial responsibility for any damages or injuries they caused. This means, you must show proof of liability insurance.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in the state of Iowa, your policy must include minimum liability coverage of the following or you may need to use a baton rouge car accident lawyer:

$20,000 bodily injury coverage per person,
Up to $40,000 bodily injury coverage for all persons per accident,
and
$15,000 for property damage coverage caused in an at-fault accident

What are the Rental Car Insurance Requirements?

Much like the vast majority of other states, in the state of Iowa rental car companies must provide the state required minimum amount of liability insurance. This will cost you anywhere from $7-$14 a day. If your personal auto insurance policy includes the minimum amounts of coverage for rental cars or your credit card offers coverage, you can waive the car rental company’s coverage by signing a Collision Damage Waiver (CDW).

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

While the state of Iowa does not require motorists to purchase Uninsured/Underinsured Motorist Coverage, auto insurance companies must offer it. Iowa insurance providers will offer collision coverage, comprehensive coverage, and uninsured motorist protection coverage in addition to liability insurance. The state of Iowa highly recommends purchasing additional coverage.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

The state of Iowa does allow auto insurance companies to use Personal Credit History to help determine rates and offers for products. Overall, however, Iowa auto insurance rates are determined by a combination of other factors including age, car type, driving record, location, and marital status. Iowa motorists with better driving records pay less than those with a accidents or tickets.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If your insurance lapses in the state of Iowa and you are operating a motor vehicle, you are driving without insurance. If you are caught driving without insurance, you will be fined. If you are in an accident and you can’t prove financial responsibility, you will incur fines and your license may be suspended for up to one year.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

The state of Iowa does allow auto insurance companies to use Personal Credit History to help determine rates and offers for products. Overall, however, Iowa auto insurance rates are determined by a combination of other factors including age, car type, driving record, location, and marital status. Iowa motorists with better driving records pay less than those with a accidents or tickets.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

Iowa follows a Tort liability system, so there are no restrictions on lawsuits. What this also means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person’s insurance company. Because Iowa is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums.