Iowa Liability Insurance – Auto

Iowa Auto Insurance: All about Liability Insurance in Iowa

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Minimum Liability Requirements for Iowa

20/40/15

By Alexandra Vileikis | Licensed Agent at Learnandserve.org | Powered by A Plus Insurance

Iowa Car Insurance Laws

By law in Iowa you are required to have liability insurance at the following limits:

$20,000 per person in bodily injury
$40,000 bodily injury maximum per accident
$15,000 per accident for property damage

What is Iowa liability insurance?

Liability insurance covers bodily injury and property damage to others not in your vehicle, when you are found at fault in an accident. Liability does not cover injury for you or your passengers, nor does it cover damage to your vehicle. If you would like coverage for you, your passengers, and physical damage to your vehicle you will need to add additional coverages.

While Iowa car insurance law only requires a minimum of 20/40/15 you are able to increase those limits. This will cost you extra, but if you drive your vehicle frequently increased liability limits may be a good option for you. It is worth discussing with one of our experienced agents.

What Other Coverage Options are Available for Iowa Liability Insurance?

There are several additional auto insurance coverages that are not required by law in Iowa, but can be very beneficial to have to protect yourself, your vehicle, and the passengers in your vehicle.

Uninsured/Underinsured Motorist:

Uninsured motorist coverage guarantees you coverage incase you are involved in accident that you were not found at fault for but the other driver is uninsured. This coverage can be written up to your liability limit. Underinsured motorist coverage is a great coverage option for those that have higher then state required liability limits. If you were not at fault in an accident but you have higher than the state’s required liability limits, this coverage will raise the other drivers liability limits to meet yours.

Medical Payments:

Medical payments offers to pay up to a certain limit for you and the passengers in your vehicle for medical expenses after an accident. Regardless of who was found at fault in the accident. If you frequently have passengers or do not have health insurance, this is a great additional coverage to help cover medical expenses.

Comprehensive & Collision (Full Coverage)

Comprehensive provides coverage for covered losses that are not related to collision. Comprehensive covers theft, hail damage, vandalism, fire, or other acts of nature.

Collision provides coverage for physical damage to your vehicle due to an impact related loss. If you are found at fault in an accident, collision coverage would pay for the damages to your vehicle.

Both comprehensive and collision carry a deductible. The deductible is the portion that you as the insured are responsible for and then insurance will pick up the remaining cost of a covered loss. For example, if you were found at fault in an accident and there was $5000 worth of damages to your vehicle and your deductible is $1000. Insurance would cover $4000, you are responsible for that other $1000.

Roadside Assistance/Towing:

Most people think that when they ask for full coverage that roadside/towing is included and it is not. It is an additional coverage. Coverage varies from carrier so always make sure to go over with your agent what is actually covered. Typically there will be a limit for towing if you break down, gas delivery if you run out, lockout services, and flat tire help. Roadside is great because it gives you peace of mind that if your car breaks down you will not be stranded on the side of the road.

Rental Reimbursement:

This coverage is also an additional on top of full coverage. It gives you a certain dollar around per day, up to a 30 day maximum for a rental vehicle while your car is being repaired after a covered loss.

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Is Iowa a No Fault State?

The short answer is no, but what does no fault even mean?

In a no fault state, drivers file a claim with their own insurance, regardless of who caused the accident. However, if you exceed the limits of your own policy you may qualify to receive compensation from the other driver.

In no fault states, drivers are required to have personal injury protection on their auto policy. This provides coverage for when they are in an accident and are injured. Personal injury protection covers medical expenses for you and the passengers in your vehicle.

Iowa is an at fault or tort state. This means that as long as you are found less than 50% at fault for causing the accident you can file a claim against the other party’s insurance.

At fault states do not offer personal injury protection. You can however add medical payments coverage to your policy which offers a set dollar amount per person, for you and your passengers, regardless of who was found at fault for the accident.

How Can I Get The Cheapest Iowa Liability Insurance?

There are several ways to get the absolute cheapest insurance rate. Obviously, selecting the minimum coverage required is one. The other top four best ways to keep the cost of your Iowa liability insurance policy low are:

  1. Be a good driver – your driving record is critical when it comes to your insurance rate.
  2. Continuous insurance – insurance companies offer a discount for continuous insurance. In order to qualify, you need to have MINIMUM of 6 months with your most recent carrier. Not 5 months or 28 days, 6 full months.
  3. Bundle with other policies – By combining your Iowa liability insurance policy with a homeowners, renters, motorcycle, or RV policy, you can save money.
  4. Automatic payments or pay in full – Carriers offer discount based on how you plan to pay for your policy. Paying in full is the cheapest option, but in this day and age, who can really spare that amount of money all at once. The next best option is to set up automatic payments. Do make sure to speak with your agent about due dates to ensure your due date is one that works for you.

How Much Does Iowa Liability Insurance Cost?

Below is a list of average price by insurance company for a liability insurance policy that meets the requirements of Iowa car insurance law.

These are not guaranteed rates since there are many factors that affect the cost of an Iowa liability insurance policy.

CompanyAverage Monthly Cost
Progressive$87
The General$91
Mendota Ins. Company$97
Dairyland$104
AssuranceAmerica$106
State Farm$110
Geico$135
*(Not all carriers available in all states)*

Iowa Liability Insurance: What Information Do I Need for an Accurate Quote?

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Let an A Plus agent find you coverage so you can get back on the road!

Since there are many things that affect the cost of insurance, your agent will need to get some information before they can give you an accurate quote. Our licensed agents are fantastic at making it a fast and painless process.

Your agent will start by asking you for basic information about yourself. Name, address, household members, etc. They will also ask about your driving record. The more that an agent knows early on in the quote can help you save money.

The agent will also need the VIN for the vehicle or vehicles you are needing coverage on, and drivers license number for you and any additional drivers on your policy.

If you are unsure on coverages, our agents are super knowledgeable and will explain it all to you. We aren’t here to just sell insurance but to serve others and make sure you are well informed and understand your policy.

Iowa Liability Insurance & SR22

What exactly is an SR22?

An SR22 is an additional form attached to your auto policy that allows your insurance coverage and status to be better monitored by the state. It’s a financial responsibility that guarantees the state of Iowa you are meeting their car insurance laws. If you were to cancel the policy or have a lapse in coverage, the state will be notified electronically by your insurance carrier.

An SR22 may be added to most policies. However, some insurance companies do not offer them. Typical reasons an SR22 is not an available options is because that company does not allow SR22s, you require an out of state SR22, or you have unacceptable driving record.

To find out your best option for an SR22 speak with one of our agents who can help you find the most afford option.

Non-Owner VS Broad Form Insurance: Iowa Liability Insurance & SR22

So what is exactly is non-owner liability insurance?

It is an insurance policy that meets that state requirements in Iowa, however, it comes with restrictions. Non-owner policies limit the vehicles you are able to drive. These types of policies are meant for those needing to carry insurance, typically due to a violation that requires an SR22 or those that frequently rent vehicles need insurance.

Non-owners policies do not allow you drive vehicles that belong to yourself, household members, or a vehicle you have regular access to.

However, Iowa has a great option for those needing to drive vehicles that they have permission to use or even own. It is called a Broad Form Policy.

What is a broad form auto policy?

Broad form auto policies allow you to drive any vehicle that you own, or have permission to use. It does not cover vehicles that are used for commericial or business use.

While it is still a restrictive coverage, it does offer a lot more than a non-owners policy. You cannot add additional coverages such as comprehensive, collision, or roadside assistance. You are also unable to add additional drivers to this type of this policy. The only additional coverages allowed are: uninsured motorist and medical payments.

Broad form policies do allow (depending on the carrier) an SR22 filing to be added. The best way to guarantee this is to talk to one of our super skilled agents.

One important thing to note with broad form insurance is that it does not insure the vehicle for other drivers to drive. Broad form insurance follows you as a driver and not a vehicle.

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OTHER HELPFUL LINKS:

Iowa SR22 Information
Iowa Homeowners Insurance
Motorcycle Insurance in Iowa
Iowa Insurance Guide
Iowa Motor Vehicle Department

Last Updated on by Alexis Karapiperis