What car insurance costs in Iowa

Where Iowa's average bill lands

The National Association of Insurance Commissioners (NAIC) reports what insurers actually collected, state by state. In 2023, the latest year it has published, the average Iowa expenditure was $869 per insured car, a 12% rise from $777 in 2022. Expenditure counts liability-only cars along with fully covered ones; the combined premium for a car carrying liability, collision and comprehensive was $1,010.

Two lines tell the story. Liability, at $387, is close to half the national figure. Comprehensive goes the other way: $310 is about 30% above the U.S. average and nearly equal to Iowa's collision premium. Comprehensive covers damage other than a crash, such as hail, theft, fire or hitting an animal, so if you drive an older car, check what that part of your bill buys. Our page on how the car itself sets a price explains the rest.

What Iowa law makes you carry

Under Iowa Code 321A.1, proof of financial responsibility means liability coverage of at least $20,000 for one person's injuries, $40,000 for injuries to two or more people in one accident and $15,000 for damage to other people's property, written 20/40/15. Those limits are among the lower ones you will see, and a single hospital stay or a new pickup can exceed them.

• Uninsured, underinsured and hit-and-run coverage must be part of an Iowa auto liability policy, at limits at least equal to the bodily injury minimums (Iowa Code 516A.1).
• Rejecting it takes a signature. The named insured can reject all of it or just one part, but only in writing, on a separate sheet. A rejection carries over to renewals with the same insurer.
• Collision and comprehensive cover your own car and are not part of the minimum; a lender usually requires them while you owe money on the vehicle.

The Insurance Research Council estimates that 11.4% of Iowa drivers were uninsured in 2023, below the 15.4% national rate. That still means roughly one driver in nine. Before you sign away uninsured motorist coverage to save a few dollars, see how limits and deductibles trade off.

Iowa's rate and credit rules

Iowa's casualty rating law, Iowa Code chapter 515F, covers private passenger cars among personal lines. Insurers file their rates and rating plans with the insurance commissioner; a filing waits 30 days before it takes effect and is treated as acceptable unless the commissioner disapproves it in that time. So the state reviews rates, but each company still sets its own.

Iowa Code 515.103 lets insurers use credit information with conditions. A company can't refuse, cancel or decline to renew a personal policy, or set a renewal rate, on credit alone. If a catastrophe, serious illness, divorce, a death in the family, identity theft, a layoff of three months or more or an overseas military deployment hurt your credit, you can ask in writing for an exception; the insurer may want documents. More in our guide to credit-based insurance scores.

When no Iowa insurer says yes

The Iowa Automobile Insurance Plan covers drivers the regular market won't. You apply through a licensed Iowa agent and certify that you tried and failed to get coverage in the previous 60 days; every insurer writing car insurance in Iowa takes part. It is a fallback, not a bargain: keep checking the regular market as tickets and claims age, and read our overview of assigned-risk plans before you apply.

Ways to lower an Iowa premium

1. 1 Shop more than one insurer. Ask for quotes on the same limits and deductibles so the prices are comparable.
2. 2 Bundle where it helps. Many companies discount car and home or renters policies held together; see when bundling pays.
3. 3 Revisit comprehensive on an older car. It is the one Iowa line above the national average. Compare its cost and deductible with what the car is worth.
4. 4 Escalate a complaint if needed. The Iowa Insurance Division takes complaints through its online form, by mail or at 515-654-6600; allow 30 to 45 days. Our page on complaining about a rate increase lists what to gather first.

Questions drivers ask