Iowa Auto Insurance (2023)

Iowa is not one of the most expensive states on average for car insurance coverage, but nor is it the cheapest state. If you are looking to reduce your Iowa auto insurance costs, it is important to compare multiple companies’ average rates based on your personalized needs and driving record in order to find cheap auto insurance. 

To assist you in finding cheaper car insurance in Iowa, we’ve put together a guide on which companies have the cheapest average rates for different drivers, as well as other savings tips and how Iowa’s driving laws may affect your rates. 

Keep reading to learn more about cheap auto insurance in Iowa. 

Cheap Car Insurance in Iowa 

One of the best ways to find low-cost auto insurance is to look at the rates from multiple insurance companies in Iowa. Companies can change rates drastically based on factors such as your desired coverage, your driving record, and more. 

Below, we’ve outlined the cheapest average rates from different insurance companies based on multiple factors so that you can see what you might pay for car insurance in Iowa. 

Cheapest Minimum Liability Auto Insurance 

Drivers must carry Iowa’s minimum liability auto insurance or face multiple fines and the loss of driving privileges. Generally, the cost of minimum liability insurance is fairly cheap, as it is a bare-bones insurance policy that will pay for others’ property damages and injuries if you cause an accident. 

The average cost of minimum liability insurance in Iowa is $23 per month, or $276 a year. 

However, this average cost can vary from insurance company to insurance company, as seen in the table of basic rates for liability car insurance in Iowa below. 

Allstate, Farmers, and Travelers have some of the highest average rates for minimum liability insurance. If you are shopping for just minimum liability insurance rather than full coverage, it is best to try and get quotes from some of the cheaper companies in Iowa and avoid the more expensive ones. Comparing Geico vs. State Farm auto insurance will allow you to see which company is right for you. 

Cheapest Full Coverage Auto Insurance 

Comprehensive auto insurance coverage costs a bit more than minimum liability insurance, although it better protects your assets in the aftermath of a crash. Whereas liability insurance just pays for other parties’ costs in an accident you cause, full coverage car insurance will make sure that your own accident costs are covered. 

Therefore, it is often worth paying the higher price tag for full coverage to avoid financial difficulties after a crash. Naturally, you can also save on full coverage by comparing rates at the best auto insurance companies to pick one more aligned with your budget. 

Take a glance at the table below to see which companies offer the cheapest average rates for full coverage policies. 

Full coverage policies in Iowa cost an average of $104 a month, or $1,248 a year. However, you can see that the cost of full coverage varies greatly by company, so it is possible to pay much higher or much lower rates than the state average. 

Some of the cheaper companies for full coverage insurance include State Farm, USAA, and Travelers. 

However, bear in mind that while USAA is often one of the cheapest car insurance companies on our lists, it is only for active military members, honorably discharged veterans, and their families. Therefore, the majority of drivers won’t qualify for USAA insurance and should choose a different company from the list. 

Cheapest Auto Insurance for Drivers With Bad Credit 

In Iowa, car insurance companies often use a driver’s credit score as a part of the rate calculations. Drivers with poor credit scores may find it harder to find cheap car insurance, as insurance companies usually charge drivers with poor credit more. 

Why? Poor credit scores are an indicator to companies that drivers are more likely to miss payments, leading to other issues like canceled auto insurance and illegally driving without insurance coverage. 

However, paying a higher rate for car insurance doesn’t help drivers with poor credit scores get back on track, so it’s important to look at companies’ average rates based on credit scores to try and find savings. 

Allstate and Liberty Mutual have some of the highest average rates for drivers with bad credit scores, so if you have a poor credit score, it is best to avoid these two companies. You should instead look for the best auto insurance companies that don’t check credit.

Otherwise, you could end up paying almost $1,000 more for car insurance every year, making it harder to find cheap car insurance in Iowa. 

Cheapest Auto Insurance for Drivers With an At-Fault Accident 

At-fault accidents are another factor that will raise your auto insurance rates in Iowa. You can expect higher auto insurance rates if you have an at-fault accident on your record within the last few years. 

How much your car insurance rates will increase depends on your choice of auto insurance company. 

State Farm has some of the cheapest average car insurance rates for drivers with at-fault accidents. Allstate has some of the most expensive car insurance rates, but keep in mind that some of the more expensive insurance companies may offer an accident forgiveness program. 

For some accident forgiveness programs, you may automatically qualify when your insurance company looks over your driving record. However, with other insurance companies, you may need to pay an additional small fee to join the program. Read about the best accident forgiveness auto insurance companies to find out which one is the best for your situation. 

Accident forgiveness plans will forgive your first at-fault accident at the company. This means no increased insurance rates, which can save you hundreds or thousands of dollars. 

Cheapest Auto Insurance for Drivers With a Traffic Ticket 

Traffic tickets on your driving record will also raise your insurance rates if they pertain to your driving risk. For example, a parking ticket won’t raise your insurance rates, but a speeding ticket or reckless driving ticket will. 

If you have multiple tickets on your driving record, it is worth taking a look at different insurance companies to see if you can save by switching. 

USAA, Nationwide, and Geico have some of the cheaper average rates for drivers with traffic tickets. As with the other driving record incidents, Allstate has some of the more expensive average rates for drivers without a clean driving record. How a speeding ticket affects your auto insurance rates depends on a variety of factors, such as which company you choose for coverage. 

Cheapest Auto Insurance for Drivers With a DUI 

Oftentimes, a DUI on your record will raise your insurance rates more than an at-fault accident, traffic ticket, or bad credit score will.  Is cheap auto insurance with a DUI possible? 

Insurance companies that are usually cheap for the majority of drivers may become significantly more expensive, such as Geico. The table below shows how insurance rates can change for the worse after a DUI charge. 

Bear in mind that these average rates are just for one DUI charge. If a driver has more than one DUI on their record, rates can be hundreds or thousands of dollars more than the averages shown above. Avoiding the more expensive companies for DUIs can help you get back on track to cheaper auto insurance rates. 

Cheapest Auto Insurance for Young Drivers 

Young drivers have some of the most expensive auto insurance rates until they reach their mid-20s. Unless the young driver has to purchase their own policy, as long as they live with their parents, it is often cheapest for them to join their parent’s insurance policy. 

Otherwise, the average rates for young drivers purchasing their own insurance policies will be as shown in the table below. 

Young drivers should avoid companies like Travelers, where the average monthly cost is almost $1,000. A good alternate choice would be a company like Geico, where the average monthly rate is less than a few hundred dollars. 

In addition to choosing a cheaper company, young drivers can also reduce their auto insurance costs by keeping a clean driving record and applying for discounts. 

Cheapest Iowa Cities for Auto Insurance 

Your location in Iowa will also affect how much you pay for auto insurance coverage. The location where you park your car every night has multiple different risks, from local crime in the area to extreme weather patterns. 

Your area might also have heavier traffic or a higher-than-average car crash rate. Insurance companies will consider all of these factors when calculating auto insurance rates. 

One of the most expensive cities for car insurance in Iowa is Sioux City.

Sioux City costs a few hundred dollars more each year on average than cheaper cities on the list. If you are moving to a new area in Iowa, getting a few car insurance quotes is important to ensure that your company still has the cheapest rates for your new area. 

Some insurance companies may also not sell insurance coverage in all areas, so if you are moving to Iowa from a different state, make sure that your insurance company still provides coverage in Iowa. 

The last thing you want to do is go a day or two without car insurance coverage as you scramble to find a new insurance provider. Insurance lapses will substantially increase your auto insurance rates. 

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Tips for Saving on Iowa Car Insurance Policies 

Shopping around for auto insurance quotes and comparing insurance companies’ averages based on your driving record and coverage needs are some of the best ways to save on car insurance policies. 

However, we have a few other tips to reduce your Iowa auto insurance rates. 

Some tips to try and find savings include: 

• Applying for additional discounts. Not all discounts offered by your insurance company are automatically applied. Some you will have to submit evidence for, such as a defensive driving certificate or an average grade report. 
• Dropping nonessential coverages. You may choose to drop additional coverages like roadside assistance or main coverages like comprehensive or collision insurance if your car is no longer worth much. 
• Purchasing a cheaper car to insure. If you have an expensive vehicle or an older vehicle that doesn’t qualify for safety discounts, you may be able to find savings by getting a new vehicle. 
• Raising your insurance deductibles. Increasing your insurance deductibles will reduce your overall insurance cost, as you are taking on more financial risk. It’s important, though, not to raise your deductible to an amount you can’t pay out of pocket. 

Following the tips above can help you reduce your Iowa auto insurance rates. Just make sure that you aren’t sacrificing too much coverage for a cheaper cost. Raising your auto insurance deductible too high or dropping too many coverages can cost you more in the long run if you are in an accident and get stuck with high bills. 

Iowa Driving and DUI Laws 

A state’s insurance requirements can impact how much you have to pay for auto insurance coverage. For example, suppose a state requires you to carry at least three different coverages with high liability limits. In that case, the minimum cost of insurance will be higher than in a state with lower requirements. 

To guide you through Iowa’s driving and DUI laws, we’ve gone over what insurance coverages you need to carry in Iowa, which coverages are optional, DUI penalties, and more. 

Minimum Insurance Coverage Required in Iowa 

If you live in Iowa, you must carry the minimum auto insurance required by the state. Not carrying the required amounts, or not carrying car insurance at all, is illegal and could result in a suspended license, fines, and more if caught. 

So what auto insurance coverages do Iowa drivers need to carry? 

All Iowa drivers must have bodily injury liability insurance and property damage liability insurance in the following amounts: 

• Bodily injury liability insurance — $20,000 per person and $40,000 per accident 
• Property damage liability insurance — $15,000 per accident 

Iowa has rather low amounts of required liability insurance, so if you can afford to purchase a higher limit of liability insurance, we recommend doing so. For instance, $15,000 isn’t very much coverage if you cause a major accident or total someone’s car. 

Because your Iowa auto insurance will only cover up to $15,000 worth of damages in an accident you cause, you may have to pay some of the costs out of pocket if you cause more than $15,000 in damages. 

So if you are at a higher risk of crashing and can afford to raise your limit a little bit, we recommend doing so. 

Optional Insurance Coverages in Iowa 

Firstly, we want to note that while the state of Iowa doesn’t require comprehensive and collision insurance, you may be legally required to carry these coverages by your lender if you have a lease or loan on your vehicle. 

Even if not required by your lender, if your car is newer, we recommend carrying these coverages to avoid financial losses. 

Below, you can see a complete list of which coverages are optional in the state of Iowa:

• Comprehensive coverage. This coverage helps if your car is damaged in a non-accident-related event, like severe weather or vandalism. 
• Collision coverage. Collision coverage helps pay for repairs if your car is damaged in an accident. Without collision coverage, you may have to pay for repairs to your vehicle out of pocket. 
• GAP coverage. GAP insurance helps pay the difference between what you owe on your car and what your car is actually worth after depreciation. 
• Medical Payments (MedPay). MedPay pays for medical bills, doctor’s visits, and other medical costs associated with a covered event. 
• Roadside assistance. This coverage helps if your car breaks down and you’re in need of certain assistance, like fuel services or flat tire repair.
• Uninsured/underinsured motorist coverage. This coverage allows you to be reimbursed after an accident by your own insurance company if the at-fault individual does not carry proper Indiana-mandated liability coverage.
• Rental car reimbursement. If your car is in the shop due to a covered event, your insurance company will reimburse you for the cost of a rental vehicle up to a certain amount. 

These coverages may not be offered at every insurance company, but they should give you a general idea of what coverages you can choose from in Iowa. Every driver is different in terms of what coverages they need, so you may want to speak to your insurance company to see which of the optional coverages might be best for you. 

For example, if you have made an expensive modification to your car, your regular car insurance policy won’t pay you extra to cover the cost of the modification if you get into an accident. 

If you want your car modifications covered, you will need to purchase modified car insurance with one of the best auto insurance companies that insure modified cars. 

DUI Penalties in Iowa

Because driving drunk puts both the driver and other people on the road at risk, Iowa has strict penalties to discourage drivers from driving while under the influence. As we showed earlier, your car insurance rates can increase by hundreds of dollars after a DUI charge, but there are also state penalties as well. 

Some of the penalties you may face for a DUI include the following: 

• Fines, including emergency response restitution 
• An ignition interlock device (IID) 
• Jail time 
• License suspension 
• SR-22 certificate 
• Substance abuse evaluation 
• Substance abuse treatment

The severity of the penalties will also increase with each DUI offense. A first DUI may not include jail time, but a third DUI may come with up to five years of jail time. Drivers with multiple DUI offenses may lose their right to drive for years. 

There are also all the associated costs with a DUI beyond just the fines that can bankrupt drivers, such as the cost of a substance abuse evaluation, installing an IID in order to drive, license reinstatement fees, and more. 

Once you add up all these costs and fines, in addition to the increased insurance rates, DUIs can cost drivers thousands and thousands of dollars after just one DUI charge. 

How to Get an SR-22 in Iowa

In order to get an SR-22 certificate, drivers must contact their car insurance company. Their insurance company may charge a small fee to file the SR-22 certificate on behalf of the driver. 

In addition, because drivers who need SR-22 certificates are considered a higher risk to insure, if you need an SR-22 certificate, you may risk being dropped by your car insurance company. 

However, insurance companies are obligated to let you know ahead of time of their decision to drop you and give you time to find a different auto insurance company. 

If you are dropped by your car insurance company or want to switch companies to try and find a cheaper auto insurance rate, keep in mind that it may be harder to find an insurance company that will insure you. The company may also charge additional fees to file the SR-22 certificate. 

You may have to apply for auto insurance through the Iowa Automobile Insurance Plan if independent car insurance companies refuse to insure you. 

It is also important to note that even if you don’t own a car, you are still mandated to file an SR-22 certificate. In these cases, you will have to purchase non-owner SR-22 auto insurance coverage, which will provide you with Iowa’s minimum liability insurance coverage when you drive someone else’s car.  

SR-22 Insurance Certificates in Iowa 

High-risk drivers may be required to provide proof of insurance coverage through an SR-22 certificate to get back their licenses, registration, and other important driving documents. 

Some examples of high-risk drivers who may need an SR-22 certificate include the following: 

• Drivers caught driving impaired 
• Drivers caught driving with an expired or suspended license 
• Drivers caught driving without car insurance coverage 
• Drivers with multiple points on their driving record 

How long you will need SR-22 insurance in Iowa will depend on the severity of your conviction. In most cases, it is two years after the reinstatement of your license. Minor violations do not generally require SR-22 insurance. 

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The Final Word on Cheap Car Insurance in Iowa 

Iowa isn’t the most expensive state on average for car insurance coverage, but this doesn’t mean that every driver will have cheaper auto insurance rates. Depending on your driving record, area, and coverage options, you may have cheaper or more expensive rates than Iowa’s averages. 

The best way to ensure you are getting the best rate possible in Iowa is to compare rates at different Iowa car insurance companies. If you want to get started right away on finding the cheapest Iowa car insurance rates for you, use our free quote comparison tool.

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