Iowa Car Insurance

Car insurance in the State of Iowa is rather unique compared to many of the other states in that it does not have a formal financial responsibility law.

Financial responsibility requirements for drivers are established by the individual states to help protect the driving public.

Be sure to always compare car insurance rates by using our FREE zip code search tool located above!

Accident Report Requirements

In Iowa, at the time of an accident resulting in damages of $1,500 or more, an accident report must be filed within seventy-two hours, and proof of financial responsibility must be provided. The forms for proving financial responsibility are as follows:

• Proof of insurance coverage
• Monetary evidence of responsibility
• Releases from involved parties
• A court decision relieving you of liability
• An agreement to pay damages on an installment plan
• Confession of judgment including an agreement about a payment schedule
• Evidence of settlement of all damages and injuries

It is necessary to file these evidences for both the owner and the driver of a vehicle. Failure to comply with this law results in suspension or revocation of both drivers license and registration.

Subsequent Methods of Proof

If an individual or owner is unable to file the evidences of financial responsibility, they must prove financial responsibility for future accidents in the following ways in order to reinstate their license or registration:

• An Iowa insurance company must file a Certificate of Insurance
• Money equal to $55,000 must be filed
• Proof of insurance from your employer's insurance company

Note that the reinstated license and registration are only useful for the vehicles for which you have filed financial responsibility. This law means that you must provide evidence of responsibility for all the vehicles that you drive.

Should you move from the state of Iowa and obtain another driving license, the financial responsibility law from Iowa follows you to the state to which you move, and you must continue to verify proof.

Drivers Under the Age of Eighteen

Drivers under the age of eighteen are subject to the same financial responsibility laws as other drivers. Since they ordinarily drive automobiles belonging to their parents, the parents should be prepared to offer proofs of responsibility.

Iowa, along with many other states, requires that drivers under the age of eighteen follow a graduated driver's license system. This system has various levels of licenses beginning at age 14, with increasing levels of responsibility, as the driver gets older. Briefly, the steps are:

• Instruction permit
• Minor school license (if needed)
• Intermediate license
• Full license

Driving restrictions, hours, and passenger criteria vary according to the level of license. The intent is to allow young people to experience gradually increasing responsibility with clear penalties until they are eligible to be licensed fully within the state.

Purchase Decisions

Considering that insurance is not required in Iowa, many individuals may assume that they do not need automobile insurance, but this is not so.

If you examine the rather complicated setup for financial responsibility within the state of Iowa, you will be aware of the convenience and peace of mind that purchasing automobile insurance can provide. There are several reasons for buying this insurance:

• Having available proof of financial responsibility in the event of an accident
• Automatic filing of SR-22 if necessary
• Freedom from the burden of having to observe all the time constraints applying if you don't have insurance

Purchasing Automobile Insurance in Iowa

Be sure to comparison shop for auto insurance. Not only shop for the best price, but also for the best company to carry your insurance. One place to start looking for insurance is A.M. Best for financial ratings of insurance companies.

Insurance companies need to have a solid financial footing in order to meet the requirements of their policyholders. A disaster in your area could conceivably cause difficulty with settling claims for an insurance company with a weak economic basis.

After financial competence, most of us are interested in how an insurance company settles its claims. A good way of checking this online is to go to the website for the National Association of Insurance Commissioners (NAIC) to look at the complaint departments for your state.

This site will allow you to file a complaint if necessary. The NAIC is a voluntary association of the top insurance officials in each state and provides a lot of consumers information as well as news and data on insurance companies.

Suggested Minimum Coverage for Auto Insurance in Iowa

A suggestion of minimum required insurance for cars in Iowa is made by Nolo, a legal website on the Internet:

• $25,000 for the injury or death of one person – yourself, a pedestrian, passenger, etc.
• $40,000 for total damages in one accident
• $15,000 for property damage

A note about Nolo.com: This website provides a general overview of legal issues and intends to provide a source of legal software for individuals and attorneys. Their information is not to be considered legal advice. It is best to contact your attorney for exact advice.

Looking at the minimums of coverage needed if you carry car insurance in Iowa, most of us are struck by the fact that the suggested coverage is inadequate for modern costs and the effects of inflation.

Most insurance agents recommend the following levels of protection for the average individual. Your circumstances may vary, and other recommendations may be necessary.

• $100,000 for the injury or death of one person
• $300,000 for total damages in one accident
• $50,000 for property damage
• $1,000 medical payments coverage – to defray immediate costs incurred in the accident
• $100,000/300,000 uninsured/underinsured motorist coverage – In spite of the fact that Iowa has facilities available to address this coverage, many individuals do not have a net worth to afford the payment for injury to others.

Property Damage Coverage for Your Vehicle

Very few individuals can purchase a car without incurring a loan. In that event, the lending company will require you to carry insurance to help repair your vehicle in the event it is damaged. Deductibles – the amount by which the claim is reduced – often depends upon the requirements of the lender. Suggested coverage is:

• $500 deductible comprehensive coverage – paying for theft, vandalism, fire, disasters such as a hurricane or tornado, falling objects, animal damage, as well as riots or civil disturbances.
• $500 deductible collision coverage – paying for the act of running into something else that damages your vehicle.

Comparison Quotes

When looking for car insurance, be sure to acquire quotations from different companies about cost of insurance.

Sample comparison quotes –

To illustrate this point, we requested quotations for an individual with the following information:

• Male, married, 41 years old – living in Cedar Rapids, Iowa
• Drives a 2007 Acura TSX
• Coverage carried - $100,000/300,000 bodily injury; $50,000 property damage; $1,000 medical payments; $100,000/300,000 uninsured/underinsured motorists coverage; $500 deductible comprehensive; $500 deductible collision

Insurance Company A: $337.00 every six months

Insurance Company B: $195.00 every six months, but they would not quote comprehensive and collision on a vehicle of this age.

As you examine competitive quotes, you need to be certain that the quotes are comparable. Factors that can affect insurance premiums are things such as:

• Driving record
• Age
• Marital status
• Credit records
• Amount driven
• The vehicle you drive and its repair history

Examine all the details carefully when you request car insurance quotes. Insurance companies that rely upon an online presence and electronic communication are often less expensive, but ones that have a local agent tend to have better service.

Just be sure to enter your ZIP code into the FREE comparison tool below!