What car insurance is required in Iowa?

Car insurance isn't technically required in the state of Iowa, but this can be a bit misleading. In Iowa, all drivers are required to have Financial Liability Coverage. This means that a driver needs to be able to prove they're able to pay for any damage or injuries they may cause if they're in an accident. According to the Iowa Legislature, proof of Financial Liability Coverage can include a Bond filed with the DMV according to section 321A.24 Certificate of deposit filed with the DMV described in 321A.25 Valid certificate of self-insurance issued by the DMV noted in section 321A.34

What's the financial responsibility system in Iowa?

Iowa operates under a financial responsibility system. All this means is drivers need to be able to prove they can pay for damage or injuries if they're in an at-fault accident.

What liability insurance is required in Iowa?

Iowa law requires you to have liability car insurance. This coverage protects others if you cause bodily harm or property damage to them. It's important to know this coverage doesn't cover you, your car, or your personal belongings.

Is Iowa a no-fault insurance state?

No, Iowa is not a no-fault insurance state. This means a driver that causes an accident is also responsible for paying for the damage. Although many drivers have insurance to help cover these costs, some don't. These drivers can be either underinsured or uninsured. Due to this, Iowa drivers may want to consider additional coverages Personal Injury Protection (PIP) Uninsured Motorist Coverage

What's the average cost of car insurance in Iowa?

The average cost of car insurance in Iowa was $1,218 in 2021 according to thezebra.com. That's 20% lower than the national average. Of course, your auto insurance cost will depend on many different factors including your age, where you live, and your driving history.

What Iowa car insurance coverage is right for you?

All Iowa drivers must have the state minimum auto insurance coverages. But, based on your budget and needs, you may want to consider higher limits for more protection. We'll help you customize your Iowa car insurance to get the coverage that fits you.

What's the best car insurance in Iowa?

Liberty Mutual knows that everyone has different needs for their Iowa auto insurance. Some may want the cheapest Iowa car insurance, while others want more coverage and an auto insurance company they know they can trust. We can help you customize your Iowa car insurance, so you only pay for what you need.

What's gap insurance coverage?

Gap insurance helps pay the difference between what's owed on a vehicle loan and the actual value of it, if it's stolen or a total loss. This difference is what's referred to as the "gap". In general, this "gap" occurs when you buy a new vehicle, the value (actual cash value) can start going down right away. This is what your car insurance covers, not what you owe on a loan. This is where gap insurance can help.

How does gap insurance work?

Let's say you buy a new vehicle with a $25,000 loan. You get into an accident and your vehicle is totaled. At the time of the accident, your vehicle is valued at $15,000 but you still owe $20,000 on your loan. For a covered loss, you'd get paid for the value of your vehicle at the time of the incident ($15,000). This leaves $5,000 owed on your loan. With gap insurance, the difference would be covered, minus any deductible.

How much does gap insurance cost?

The cost of gap insurance depends on many factors. In general, the cost of gap insurance coverage varies based on Type of vehicle Actual cash value of the vehicle Where you buy the coverage (ex., insurance company, car dealer, or lender) Claim history, etc. In general, gap insurance may be cheaper if you buy it through your car insurance company vs a car dealer or lender.

Does gap insurance cover theft?

Yes, gap insurance may cover theft if your car is stolen and unrecovered.

Does gap insurance cover engine failure?

No. Gap insurance is only used in the event of a total loss from a covered accident or theft, not for mechanical repairs.

Does gap insurance cover deductible costs?

No. Even in the event of an accident covered by your gap insurance policy, you would still have to pay your deductible (the amount you pay out of pocket before your coverage kicks in). In other words, if the "gap" reimbursement amount is $4,000 and your deductible is $500, your total reimbursement amount would be $3,500.

Does gap insurance cover medical costs?

No. Gap insurance is only for vehicle losses and doesn't cover bodily injuries, medical expenses, lost wages, or funeral costs.

Is gap insurance worth it?

Gap insurance provides a lot of benefits, but whether it's worth getting depends on you and your situation.

What is negative equity, and does gap insurance cover it?

Negative equity is another term for when you owe more than your vehicle's current value. And yes, negative equity is covered by gap coverage.

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6 main types of car insurance

What are the 6 main types of car insurance coverage?

As a driver, you have a lot of car insurance coverages to choose from. Some are required by your state, and others are optional—but recommended for extra protection.

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Main types of car insurance

The 6 main types of car insurance coverage that you should know about before getting a car insurance quote or changing your policy are:

Liability
Medical Payments
Personal Injury Protection
Collision
Comprehensive
Uninsured Motorist

Please note, you'll need to pick the amount of each coverage to best meet your needs.

Coverage Types

Required

Required in Some States

Optional

1. Liability
Bodily Injury Liability helps cover other people's medical expenses if you cause an accident.

Property Damage Liability helps cover damages you cause to other people's property in an accident.

2. Medical Payments help pay for your initial medical expenses if you're hurt in an accident, regardless of who is at-fault.

3. Personal Injury Protection (PIP) helps cover other people's medical expenses if you cause an accident.

4. Collision coverage pays for damages to your vehicle from colliding with another vehicle or object, like a tree or guardrail.

5. Comprehensive coverage pays for damages to your vehicle from things other than collisions like hail, theft, or impact with an animal.

6. Uninsured Motorist (UM)
Uninsured Motorist Bodily Injury: Helps pay for your injuries if the at-fault driver is uninsured.

Uninsured Motorist Property Damage: Helps pay for your car's repairs if the at-fault driver is uninsured.

Other common optional car insurance coverages include:

New Car Replacement™
Gap Coverage
24-Hour Roadside Assist
Original Parts Replacement
Rental Car Reimbursement

Other Optional Coverages	For What
1. New Vehicle Replacement™¹ helps if your new car is stolen or totaled in the first year, you'll get the money for a brand-new car, not just the depreciated value.	Your car (and your wallet!)
2. Gap Coverage helps if your car is totaled or stolen, and its value is lower than the amount remaining on your loan, this will cover the remaining amount you owe.	Your car (and your wallet!)
3. 24-Hour Roadside Assistance² pays for towing costs or onsite repairs if your vehicle breaks down. We'll pay the full cost of towing if you use our services, or help cover the cost if you make your own arrangements.	Your car
4. OEM New Replacement Parts³ helps replace any damaged parts to your vehicle with parts that meet the highest quality standards.	Your car
5. Rental Car Reimbursement⁴ helps pay for a rental car while your vehicle is being repaired after an accident.	Your wallet

We know choosing car insurance coverage can be confusing! When you get a quote with us, we'll make sure you meet your state's required minimum coverages (often referred to as “basic car insurance”). We'll also explain optional coverages that can add extra protection.

At Liberty Mutual, you could save money on car insurance by only paying for what you need. It's still car insurance, just customized for you.

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Please note: Information presented on this page is intended to be general information about insurance and is not specific to Liberty Mutual policies. Policies and coverages vary by state and insurer. Contact your insurance company to understand specifics regarding your policy and coverages.

What are the 6 main types of car insurance coverage?

Main types of car insurance

Coverage Types

Other Optional Coverages

For What

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