Iowa Auto Insurance Guide

Whether you’re heading for Iowa City to catch a University of Iowa game, traveling to Des Moines for the famous Iowa State Fair or driving to Winneshiek County for some world-class trout fishing, the Hawkeye State offers miles of open road and great daytrips. From Sioux City to Dubuque, from Mason City to Ottumwa, sightseeing or commuting, car insurance is crucial to being a responsible Iowa driver.

 

Auto Insurance Resources for IA State Residents

As of 2010, there are about 1.97 million licensed drivers in the Hawkeye State. The Insurance Research Council estimates that 12% of Iowa’s drivers are uninsured. In 2008, according to the Insurance Institute for Highway Safety there were 368 traffic fatalities in Iowa, with alcohol involved in 26% of them. Uninsured and alcohol-impaired drivers are all good reasons to be sure you have enough car insurance while living and driving in the Hawkeye State.

 

Iowa State Minimum Car Insurance

Iowa state law requires you to carry a minimum amount of car insurance or face severe penalties. Iowa has a tort-based system. If you cause an accident, you can be sued. While Iowa does not require you to carry Uninsured/Underinsured Motorist coverage, additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the minimum requires shown below:

• $20,000 bodily injury per person per accident
• $40,000 bodily injury for all persons per accident
• $15,000 property damage liability

 

Iowa Car Insurance Laws

Iowa is a little different from most other states in that it does not have compulsory auto insurance law. Instead, they have the Financial and Safety Responsibility Act. You can choose to provide proof of financial responsibility or purchase the minimum coverage shown above. If you can’t produce one or the other after causing personal injury or damages exceeding $1,000 to the other party in a car accident, both your driver’s license and vehicle registration will be suspended, and you’ll have to provide proof of a valid Iowa car insurance policy to reinstate them (or post a bond equal to $55,000).

If you can’t show financial responsibility, you will be liable for all expenses associated with your accident, get written releases from everyone whose person or property you damaged and file an agreement to pay for them on an installment plan. Eventually, you’ll have to provide proof to the state that you met your obligation. For complete details of the penalties for driving without insurance and causing an accident, see the Iowa Department of Transportation.

 

Regulating Agency and References

Iowa Insurance Division
This agency is responsible for regulating vehicle insurance policies sold in Idaho. For more information, visit their website at www.iid.state.ia.us

Iowa Motor Vehicles Division
This is the agency responsible for licensing drivers and registering vehicles. You can learn more about Iowa auto insurance requirements, penalties and related information at www.iowadot.gov/mvd/

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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