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Iowa Car Insurance Information

Requirement : Yes

Financial responsibility is required in Iowa . Drivers must have a minimum of liability coverage, all liability insurance policies must also include uninsured/underinsured motorist liability coverage.

Minimum Coverage Car Insurance Requirements:

A minimum liability, and uninsured/underinsured coverage is required:

    • $20,000 for bodily injury to one person.
    • $40,000 for bodily injury per accident.
    • $15,000 for property damage liability per accident.
  • Uninsured/Underinsured motorist coverage – Covers you in case you’re involved in an accident with an uninsured party, or they don’t have adequate coverage.
    • $20,000 per person
    • $40,000 per accident
  • * You may opt out of uninsured/underinsured motorist coverage, however, you must do so in writing.

Other Car Insurance Coverage Options:

Liability and coverage is the only requirement for Iowa motorist to have, there are several other types of coverage available to drivers:

  • Collision – Covers damages to your vehicle due to an accident.
  • Comprehensive – Covers damages due to your non-accident related damages to your car, such as inclement weather.
  • Medical Payments – Helps cover your medical or funeral costs due to an accident.
  • Rental Reimbursement – Reimburses you if you have to rent a car after an accident.
  • Custom – Covers the insured for customized vehicle equipment damaged due to an accident.
  • GAP Coverage - If your vehicle is loaned or leased and totaled, Gap insurance may pay for the difference between the cash value of the vehicle and the unpaid balance of the loan or lease.

  • Note: Comprehensive and or collision coverage is optional, unless the vehicle is being financed or leased, the lending/leasing agency may require you to purchase comprehensive and collision coverage.

Other Forms of Financial Responsibility:

Other legal ways around buying car insurance include:

    • $55,000 cash or securities deposit with the state comptroller.


Proof of Insurance: Yes

You must carry proof of insurance with your vehicle at all times.

Valid forms of proof of financial responsibility include:

  • Insurance card.
  • Certification of financial responsibility.

Insurance Violations:

Violations, Fines & Penalties:

  • $250 fine.
    • Community service, in lieu of a fine.
  • Suspension or revocation of license plates and vehicle registration.
  • Impoundment of vehicle.


A SR22 may be required after a suspension in order to get your driver’s license reinstated. An SR22 certificate only certifies proof of insurance of minimum requirements, it is not insurance.

Reasons you may be required to carry an SR-22:

  • Your driver’s license was suspended or revoked due to operating a motor vehicle while intoxicated (OWI)
  • * You must hold an SR22 for at least 2 years

Credit Scores & Determining Your Insurance Premium :

All Iowa drivers are required to have car insurance, however, insurance providers are reserved the right to deny coverage to high-risk drivers. High-risk drivers should try to find a provider that specializes in high-risk, non-standard drivers.


Other factors that may be used to determine your premiums include:

  • Age
  • Gender
  • Claim history
  • Credit history
  • Driving history
  • Marital status
  • Make, model of car
  • Neighborhood or city of residence
  • Deductible
  • Driver training courses
  • Primary use of vehicle

Discounts : Yes

Discounts available in Iowa:

  • Good student discount
  • Homeowner discount
  • Multi-vehicle discount
  • Paid-in-full discount
  • Accident free driving record discount
  • Provider switch discount

Cellphone Use:

Novice drivers are banned from all cellphone usage. All drivers are banned from texting while driving. Texting violations are considered secondary offenses. Violators face a $30 fine, up to $1,000 should it be found that texting contributed to an accident.

Iowa Minimum Coverage Laws

Carriers in Iowa

Full Insurance Laws for Iowa