Auto Insurance in Iowa

The state of Iowa does not require that all drivers have a liability auto insurance policy. Unlike most other states, Iowa does not have a compulsory insurance law for drivers. However, the law requires that the driver as well as the owner of the vehicle, be able to show financial responsibility.

 Iowa is not a -no-fault- state where a determination as who caused the accident, is discovered and settled through the Tort legal process. In other words, if there is an accident, one of the drivers will be identified as the cause or at-fault in the accident. And being at fault must pay damages. In most cases, the auto insurance company of the person at fault will pay the damages. Because Iowa is a Tort state, most insurance companies recommend that driver's consider carrying higher coverage than just the state minimums.

 In the state of Iowa, all motorists must show proof of financial responsibility to peace officers upon request. The most common way is to purchase a valid liability insurance policy. Once the policy is issued, your insurance company will send you an insurance card, which you will keep in the car, at all times.

 Iowa's Financial & Safety Responsibility Act provides that drivers who drive dangerously, as well as not being able to prove financially responsibility, can lose their driving and registration privileges terminated. Once that occurs, they will have to prove their ability to pay for any destruction of property or injuries caused.

 In circumstances where the driver or owner does not have auto insurance, they can contact the Office of Driver Services at (800) 532-1121 for submission instructions, to learn of the alternate forms of proof of financial responsibility that can be used.

 The state of Iowa has established the rules and guidelines, for allowing car insurance companies to use the personal credit history of the driver, to assist in determination of rates and products to offer. The rates are calculated based on factors including the age of the driver, the car type, driving record, location of residence, as well as the marital status. And those drivers with accidents and tickets on their driving records pay more than those with good records.

 In Iowa, the minimum liability coverage required, is bodily injury coverage of $20,000 per person, up to $40,000 bodily injury coverage for all persons per accident, and for property damage coverage caused in an at-fault accident, $15,000.

 Auto insurance companies operating in Iowa must offer uninsured and underinsured motorist coverage, where the driver has the option to buy it. Iowa insurance providers also offer collision coverage, comprehensive coverage. Because Iowa is a Tort state, consumers would be advised to buy additional coverage.

 In Iowa, there are rules regarding whether a driver has prior insurance. If your insurance lapses and you are operating a car, technically you are driving without insurance. If you are found to be driving without insurance, you will receive a citation and be fined. If an accident occurs, you will be fined and your license may be revoked, possibly for one year.