Iowa car insurance

Big red barn in an Iowa field with a cloudy sky

Common questions about Iowa
auto insurance

Need car insurance in Iowa? Whether you live by the Cedar Rapids or Des Moines, Liberty Mutual Insurance can help you save on car insurance! From Liability Protection to Comprehensive Coverage, we've got you covered. We'll help you customize your Iowa auto insurance, so you only pay for what you need.

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

In most cases the easiest way to do this, is by having car insurance from a company like Liberty Mutual.

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. The easiest way to prove financial responsibility is to have car insurance. In some cases, like if you have a lease or loan on your vehicle, you may be required by the lender as well.

Here are the minimum auto insurance limits drivers must have in Iowa.²

Coverage	Amount
Bodily Injury to Others	$20,000 per person and $40,000 per accident
Property Damage Liability	$15,000 per accident
Uninsured Motorist Coverage	$20,000 per person and $40,000 per accident

For more information, check out the Iowa Driver's Manual.

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.

Drivers must have a car insurance policy with the minimum coverages of

Bodily Injury Liability: $20,000 per person and $40,000 per accident
Property Damage Liability: $15,000 per accident

You may see this written as 20/40/15.

Remember, this is only the minimum Liability Coverage required by law. You may want to think about increasing your limits for more financial protection. You should also consider other types of coverage that can give you even more protection.

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

These coverages can help cover you if you're in an accident with an underinsured or uninsured driver. While these are optional coverages, it's recommended to have them. In Iowa, drivers must opt out of these coverages in writing when buying a car insurance policy.

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

The average cost of car insurance in Iowa was $1,218³ 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.

Some people get the minimum coverage, while others prefer more protection. Liberty Mutual can save you money on Iowa auto insurance with a customized policy, so you only pay for what you need.

See how much you could save on car insurance

Who has the cheapest car insurance in Iowa?

Getting the cheapest car insurance in Iowa may sound great, but that cheap rate can come at a cost when you need it most. You want auto insurance that's affordable, but even more importantly — reliable, in case you have an accident.

A Liberty Mutual auto insurance policy can cost less than you think.⁴