Cheap Car Insurance In Iowa For 2022


WRITTEN BY: Julia Matseikovich

UPDATED: SEPTEMBER 15, 2022 | 2 MIN READ

Locating cheap car insurance in Iowa is no easy task. Insurance rates, deductibles, and types of coverage can all be confusing to sort out. This article covers all you need to know about buying car insurance in Iowa.

Best Iowa Car Insurance Companies

Iowa is not one of the most expensive states to purchase car insurance. Premiums for car insurance depend on many factors, including age and liability limits. Here are some of the best car insurance companies to help you find the best coverage for your budget.

Cheapest Iowa Car Insurance Company

The cost of car insurance in Iowa is more expensive for drivers involved in an accident or with prior violations. If you’re looking for the cheapest car insurance company within Iowa, you should go with State Farm. 

State Farm offers the most affordable premiums with minimum coverage or if you have a not-so-clean driving history. They charge $198 per year for individual minimum coverage and an average of $765 for full coverage.

Company With the Best Customer Service

Auto-Owners Insurance is the top provider in Iowa for customer service. Based on user satisfaction and claims scores, it receives a 5 out of 5 on the customer service rating.

Company With the Best Premium-Reducing Programs

The car insurance in Iowa for bundling is Nationwide. It offers excellent premium-reducing programs if you bundle your car insurance with home or renter’s insurance. 

Company With the Best Discounts

In Iowa, Geico insurance has an affordable premium at minimum auto coverage. It also boasts some of the most discount options. It offers discounts for safe drivers, student drivers, defensive driving, new vehicles, and the installation of safety and security features.

Iowa Insurance Demographics

Insurers examine many factors when determining what you pay for insurance. Demographics play a role in car insurance premiums. Below are some standard demographics in Iowa:

  • Crime Rates: Iowa has the 13th lowest violent crime rate. The crime rate per 1,000 residents is 3.01%.
  • Average Household Income: Only 5% of houses in Iowa are high-income. The average yearly household income is $80,316.
  • Median Age Range: The median age of all people in Iowa is approximately 38.5 years.
  • Education: The education system is widely regarded in the country. About 43% of adult residents in Iowa have an associate’s degree or higher.

Common Risk Factors In Iowa

Iowa’s most common natural disasters can vary. They include severe storms, tornadoes, landslides, winter problems, and power outages. Weather risks are also considered by your car insurance company and could impact your premium rates.

Auto Insurance Laws In Iowa

Driving your car without insurance is illegal in Iowa. You must meet the minimum liability requirements for car insurance. 

What are the minimum car insurance requirements in Iowa?

The state of Iowa requires minimum liability coverage for your car. It includes the following:

  • $20,000 of bodily injury coverage for one person in an accident;
  • $40,000 of bodily injury coverage for two or more persons;
  • $15,000 property damage coverage.

The liability insurance covers only the other car and driver or passengers when you are at fault in an accident. The law in the state does not require personal protection coverage.

Am I required to carry uninsured motorist coverage in Iowa?

Uninsured Motorist coverage is not a requirement for Iowa residents. However, it is a good idea to include it within your policy. It helps to protect yourself in case of someone who is not insured or underinsured.

Iowa SR-22 and FR-44 policies

SR-22 is the certificate you get from your insurance company to show you have coverage. Your insurance company files your SR-22 certification with the state on your behalf. Failing to file an SR-22 can result in your vehicle registration or license being suspended and fees.

An FR-44 is like an SR-22 form, showing you carry active liability coverage to meet state laws. The difference is with an FR-44, you have higher liability requirements than with an SR-22.

Is Iowa a no-fault state?

Iowa is not a no-fault state but instead uses an at-fault system. The law allows insurers to consider who was at fault for the accident before paying for the damages.

What happens if my vehicle isn’t properly insured in Iowa?

You may be in trouble if you don’t have car insurance or meet the minimum requirements in Iowa. You are subject to fines or the option to carry out community service. And your vehicle could be impounded.

Does Iowa accept digital insurance cards?

Some insurance carriers provide electronic copies of your insurance card. You can use it within their mobile app on your phone to show proof of insurance. Iowa allows you to have a digital insurance card instead of a paper one.

How Much Does Car Insurance In Iowa Cost?

Across Iowa, the average cost of full-coverage car insurance is $1,564 per year. The average price for minimum coverage is only $382 per year. The amount can vary depending on area, company, age, gender, and driving history.

Average Cost of Car Insurance In Iowa By City

The table below shows the average cost of car insurance in Iowa by city. You can see the difference between the cost from the average yearly amount ($1,564) across the state.

CityAverage Iowa Car Insurance CostDifference From Iowa Average
Cedar Rapids$1,259-$305
Davenport$1,333-$231
Des Moines$1,348-$216
Iowa City$1,356-$208
Sioux City$1,680+$116

Average Cost of Car Insurance In Iowa By Company

The chart below breaks down the average annual cost by an insurance company. Iowa’s cheapest premiums come from State Farm.

Car Insurance CompanyAverage Full-Coverage Premium (Annually)
State Farm $768
Farm Bureau$1,308
Geico$1,764
Nationwide$1,776

Average Cost of Insurance In Iowa By Age

Age plays a role in determining insurance premiums. Here’s a breakdown of Iowa car insurance average annual costs by age bracket.

AgeAverage Full-Coverage Premium (Annually)
Age 16$4,071.66
Age 18$3,233.17
Age 20$1,407.76
Age 25$1,263.45
Age 30$999.27
Age 40$949.32
Age 50$849.60
Age 60$864.50
Age 70$1,009.32

Average Cost of Car Insurance In Iowa By Gender

In Iowa, insurance premiums differ if you are a male or female. Here’s the breakdown average:

GenderAverage Full-Coverage Premium (Annually)
Male$1,015
Female$1,010

Average Cost of Car Insurance In Iowa By Credit Score

Your credit score also impacts your insurance premiums. Iowa’s rates by credit score are cheaper than the national average, as seen in the chart below:

PoorAverage GoodExcellent
National Average$3,005$1,910$1,775$1,560
Iowa$1,720$1,220$1,055$915

Average Cost of Car Insurance In Iowa By Driving Record

Your car insurance premiums rise in Iowa if you have an accident. You may also see rates increase when you receive a violation or ticket.

Driving IncidentAverage Full-Coverage Premium (Annually)
Clean Driving Record$1,265
Speeding Ticket$1,375
Accident$1,605
DUI/DWI$1,740

What Optional Iowa Auto Insurance Coverages Should You Consider?

There are many options coverages to add to your auto insurance in Iowa, such as:

What Auto Insurance Discounts To Look For In Iowa

You should always inquire about discounts available when finding car insurance. Many companies in Iowa offer some long-term customers rewards and potential savings with discounts such as:

  • Good Driver: clean driving record and no claims
  • Good Student: higher than “B” average are eligible
  • Driver Education: defensive driving courses and classes
  • Continuously Insured: insured for at least six months 
  • Pay your policy in full or set up automatic payments
  • Go paperless 
  • Bundle your policies (car, home, life) with one insurer
  • Safety & Security devices (car alarms, airbags, etc.)

Iowa Car Insurance FAQs

What car insurance is required in Iowa?

The state of Iowa requires minimum liability coverage for your car. It covers $20,000 for bodily injury or death for one person, $40,000 for two or more persons, and $15,000 for property damage in an accident.

What is full-coverage insurance in Iowa?

Full coverage auto insurance goes beyond the state’s minimum requirement for coverage. Besides the liability coverage, additionally, you obtain collision and comprehensive insurance.

Is Iowa a no-fault state?

Iowa is not a no-fault state. It uses an at-fault system, so insurers are responsible for considering who is at fault in an accident.

Does insurance follow the car or the driver in Iowa?

Insurance follows the car in Iowa, not the driver. Whoever caused the automobile accident, insurance is the primary source of compensation for damages.

How long after buying a car do you have to get insurance in Iowa?

The Iowa new-car insurance grace period is two to 30 days. If you’re insured already, you have a grace period to add your new vehicle to your existing policy. 

However, driving a car without insurance is illegal if you’re uninsured. And, most car companies won’t allow you to drive a car off their lot without proof of insurance.

How To Purchase Iowa Car Insurance

Shopping for cheap car insurance in Iowa takes some time. You must determine your vehicle’s coverage based on factors (make, model, year, mileage). Then, obtain multiple quotes across insurance companies to compare rates. Ask about discounts or other options to help save you money before making your final decision.

We make the process simple by giving you multiple quotes at once. Use our online quote tool to find the best deal now.