Iowa is a car-friendly state known for wide open spaces, easy parking, and some of the nation’s lowest annual premiums on car insurance. Here’s the latest available information on car insurance in the state of Iowa. This handy info will help Iowa drivers choose the car insurance packages that best fits their budgets.
Iowa Minimum Liability Coverage
An Iowa state law called the Financial Safety and Responsibility Act states that insurance coverage is not legally required to drive a vehicle in Iowa. However, Iowa drivers must still provide proof of ability to pay for damages if an accident should occur.
Auto insurance is highly recommended by insurance experts everywhere, because even minor accidents can be prohibitively expensive. The “suggested” minimum car insurance coverage for Iowa drivers is 20/40/15. This means that a vehicle owner in Iowa should have enough coverage to pay $20,000 in personal injury costs, $40,000 in multiple injury costs and $15,000 in compensation for property damage.
Penalties for Driving Without Insurance in Iowa
The penalty for driving without car insurance in Iowa is $250 or community service. However, if you have an accident, the cost of repairs and medical bills can be devastating. Iowa state law imposes a penalty for “financially unsound drivers.” People caught driving without enough money to cover possible damages can have their licenses restricted, suspended or revoked.
Auto Insurance Rates in Iowa
Site-specific factors that affect car insurance premiums include local climate, topography, economy, percentage of uninsured drivers, preponderance of insurance carriers and population density. Other influences on annual auto insurance premiums include the driver’s age, gender, marital status and driving record, among other things.
The average annual car insurance premium for drivers residing in the state of Iowa was $989 in 2016, with the national average premium being $1,347. Iowa had the eighth lowest average premium rate of all U.S. States in 2016, according to data collected by insure.com. Based on statistical analysis from Top50States.com, Iowa’s low premiums on auto insurance are most likely influenced by the state’s low population density, strong economy, relatively low crime rates and (especially) lack of state laws requiring auto insurance.
Low Cost Car Insurance Programs in Iowa
Most auto insurance companies offer discounts. For example, the Accident-Free Discount is available to licensed drivers who go three years without an accident. The Good Driver Discount applies to drivers who have had no moving violations and no at-fault accidents for three years. The Good Student Discount is offered to male drivers and unmarried female drivers who are under the age of 25, enrolled in school full time and maintaining high grades. The Multiple Auto Discount is for owners of more than one vehicle. These are just a few of the available discounts on Iowa car insurance.
Obtaining Auto Insurance Quotes in Iowa
Based on recent comparisons and customer satisfaction ratings, the nation’s top five auto insurance providers seem to be Geico, Auto Owners Insurance, The Hartford, State Farm and 21st Century. Iowa’s locally popular car insurance companies include Allstate, Liberty Mutual, and Esurance. Some Iowa car owners opt for local carriers like Western National. Whatever your auto insurance needs, the state of Iowa currently has many insurance companies to choose from. Call for free quotes and compare. Don’t forget to ask about the discounts.