Car insurance in Iowa

Posted on September 25, 2014

Iowa is a car-friendly state known for wide open spaces, easy parking, and some of the nation’s lowest annual premiums on car insurance. Here’s the latest available information on car insurance in the state of Iowa. This handy info will help Iowa drivers choose the car insurance packages that best fits their budgets.

Iowa Minimum Liability Coverage

An Iowa state law called the Financial Safety and Responsibility Act states that insurance coverage is not legally required to drive a vehicle in Iowa. However, Iowa drivers must still provide proof of ability to pay for damages if an accident should occur.

Auto insurance is highly recommended by insurance experts everywhere, because even minor accidents can be prohibitively expensive. The “suggested” minimum car insurance coverage for Iowa drivers is 20/40/15. This means that a vehicle owner in Iowa should have enough coverage to pay $20,000 in personal injury costs, $40,000 in multiple injury costs and $15,000 in compensation for property damage.

Penalties for Driving Without Insurance in Iowa

The penalty for driving without car insurance in Iowa is $250 or community service. However, if you have an accident, the cost of repairs and medical bills can be devastating. Iowa state law imposes a penalty for “financially unsound drivers.” People caught driving without enough money to cover possible damages can have their licenses restricted, suspended or revoked.

Auto Insurance Rates in Iowa

Site-specific factors that affect car insurance premiums include local climate, topography, economy, percentage of uninsured drivers, preponderance of insurance carriers and population density. Other influences on annual auto insurance premiums include the driver’s age, gender, marital status and driving record, among other things.

The average annual car insurance premium for drivers residing in the state of Iowa was $989 in 2016, with the national average premium being $1,347. Iowa had the eighth lowest average premium rate of all U.S. States in 2016, according to data collected by insure.com. Based on statistical analysis from Top50States.com, Iowa’s low premiums on auto insurance are most likely influenced by the state’s low population density, strong economy, relatively low crime rates and (especially) lack of state laws requiring auto insurance.

Low Cost Car Insurance Programs in Iowa

Most auto insurance companies offer discounts. For example, the Accident-Free Discount is available to licensed drivers who go three years without an accident. The Good Driver Discount applies to drivers who have had no moving violations and no at-fault accidents for three years. The Good Student Discount is offered to male drivers and unmarried female drivers who are under the age of 25, enrolled in school full time and maintaining high grades. The Multiple Auto Discount is for owners of more than one vehicle. These are just a few of the available discounts on Iowa car insurance.

Obtaining Auto Insurance Quotes in Iowa

Based on recent comparisons and customer satisfaction ratings, the nation’s top five auto insurance providers seem to be Geico, Auto Owners Insurance, The Hartford, State Farm and 21^st Century. Iowa’s locally popular car insurance companies include Allstate, Liberty Mutual, and Esurance. Some Iowa car owners opt for local carriers like Western National. Whatever your auto insurance needs, the state of Iowa currently has many insurance companies to choose from. Call for free quotes and compare. Don’t forget to ask about the discounts.

Iowa Car Insurance

Can your Iowa car insurance policy get any cheaper? This page will help you find out.

Here’s where you can learn all you need to know about purchasing a car insurance policy in the state of Iowa. Find out all you can about insuring your prized vehicle, and see how much a typical Iowa driver might expect to pay in car insurance premium rates.

Scan the details of Iowa poverty rates, Iowa unemployment info, median incomes in Iowa, and other statistics pertaining to Iowa drivers. Know about the types of car insurance coverage Iowa drivers need. Check out a list of the 10 largest car insurance companies in Iowa, and another list of the 10 largest car insurance companies in the United States.

Also see a list of average car insurance quotes from eight different Iowa zip codes. The wide range in auto insurance rates between different zip codes in the state of Iowa can play an important role in helping you reduce the cost of Iowa car insurance. You can also enjoy an odd collection of outdated Iowa traffic laws. But most importantly, this page will help Iowa drivers lower their car insurance premium rates.

Any Iowa driver who is thinking about purchasing an Iowa car insurance policy, or anyone who just wants to know more about the state of Iowa, will find this page quite useful.

Iowa Car Insurance Statistics

In terms of population and land area, Iowa is a rather average state. A 2016 population estimate claims that the state of Iowa is home to 3,134,693 people. Iowa car insurance premium rates are highest in Council Bluffs, despite the fact that Des Moines has a higher population density and overall population. This is because the city of Council Bluffs leans up against the eastern border of the city of Omaha, Nebraska, which has more than twice the population of Des Moines, as well as a much higher population density.

The median resident age in the state of Iowa is about 38.1 years. Iowa’s poverty rate is around 12.2 percent, quite bit below the national average poverty rate of 13.5 percent. Iowa’s unemployment rate is roughly 3.1 percent, well below the national average unemployment rate of 4.4 percent. In fact, Iowa has the 8^th lowest rate of unemployment (tied with Utah and Vermont) in the nation.

Recently, insurance researchers at the Insurance Research Council studied a random sample of drivers in the state of Iowa. The results concluded that approximately 9.7 percent of vehicles on Iowa roads are uninsured. This is not such a poor record among states, but still, nearly one out of ten drivers in Iowa are operating uninsured vehicles.

A 2017 report reveals that the statewide average annual premium rate for a car insurance policy purchased in the state of Iowa is roughly $1,015. This figure falls far below the national average car insurance rate at the time, which was about $1,355. In fact, Iowa is one of the ten cheapest states in the nation, on average, to buy car insurance.

The 10 Largest Iowa Car Insurance Companies

There are so just many Iowa car insurance carriers to choose from. You need to narrow them down somehow.

For starters, a statistical study has concluded that the ten largest car insurance companies in America are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual Insurance, 21^st Century Insurance, GMAC, and AIG, in that order. These major car insurance companies were ranked by their total annual dollar amount in written premiums.

For comparison, here’s a list of the ten largest car insurance companies in Iowa, based on the total annual dollar amount of written premiums for each company. This figure indicates each company’s total market share within the state of Iowa.

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Group	$300,912	21.08
2	Progressive Insurance Group	$221,050	15.49
3	Nationwide Group	$165,080	11.57
4	Farm Bureau P&C Group	$104,575	7.33
5	American Family Insurance	$94,530	6.62
6	Grinell Mutual Group	$61,286	4.29
7	IMT Insurance Companies	$46,668	3.27
8	Berkshire Hathaway Insurance	$44,701	3.13
9	Allstate Insurance Group	$37,696	2.64
10	Farmers Insurance Group	$31,158	2.18

You may notice that State Farm Insurance holds more than one in five of all auto insurance policies sold in the state of Iowa. Yet, there are many major Iowa auto insurance companies, as well as quite a few smaller, regional carriers. There is no such thing as The One Best Iowa Car Insurance Company. The best car insurance company for each driver will depend on numerous factors.

Cutting Costs on Iowa Car Insurance

For most Iowa drivers, there are many clever ways to reduce the costs of car insurance premiums.

First of all, drivers in Iowa are advised to read current customer reviews of at least a few Iowa car insurance companies. Auto insurance companies have a competitive nature, and each one offers different deals and discounts to entice would-be policyholders. Scanning reviews will help you choose the right car insurance carrier for you. Be aware that all car insurance companies receive negative reviews.

List all the Iowa car insurance companies that appeal to you. Then visit each company’s website. From there, you can compare online quotes for several different Iowa zip codes in your driving area. For example, you could enter your home zip code, your work zip code, and your school zip code. While you are on each website, be sure to visit the discounts page, and insist on every discount you might qualify for. If you are uncertain, you can always call the insurance company and ask an agent about any particular discount. It’s crucial to be proactive when asking for discounts, as the agent will not necessarily mention them. Types of discounts on car insurance include billing discounts, occupational discounts, vehicle discounts, senior discounts, good student discounts, and good driver discounts, among others.

Comparing online quotes and maximizing your discounts are two very good ways to cut costs on Iowa car insurance

What Types Of Car Insurance Do Iowa Drivers Need?

Under Iowa state law, drivers must buy car insurance policies with minimum liability limits of $20,000 in bodily injury protection per person, $40,000 in coverage per accident, and $15,000 insurance to cover the cost of property damage. However, state-mandated minimum amounts are rarely enough to cover the costs of car accidents, and Iowa’s state minimums are lower than most.

That’s why Iowa drivers should also buy at least the same liability limits in uninsured and underinsured motorist protection (UMI). Although Iowa has a relatively low rate of uninsured drivers, Iowa drivers who only purchased the state-mandated minimum required coverage will often find themselves underinsured.

United States insurance experts recommend that all drivers buy more than the minimum amount of car insurance required by the state. Analysts suggest coverage amounts of $100,000 for personal injury protection, $300,000 for bodily injury to others, and at least $50,000 to cover the cost of property damage.

Iowa drivers might also want to buy comprehensive and collision coverage for potential accidents which may result from harsh Iowa winter weather, among other things.

Odd and Outdated Iowa Traffic Laws

In the state of Iowa, it is illegal to use the license plate or handicapped parking sign of a dead person. (Does this mean it’s okay to take advantage of handicapped people who are still living?)
Every hotel in Dubuque is required to have a hitching post and a water bowl in front of the building. (Your vehicle might be thirsty from the trip, or it might just wander away.)
The Ice Cream Man and his ice cream truck are banned from Indianola.
Horses are forbidden to eat fire hydrants in Marshalltown.
In Mount Vernon, written permission must be granted from the city council before you can throw bricks onto a highway.

Best And Worst Zip Codes For Iowa Car Insurance

Iowa car insurance premium rates cover a wide range. Your rates will depend, at least in part, on your particular Iowa zip code. Auto insurance premium rates are calculated based not only on the car owner’s driving record, but also on the car owner’s neighborhood demographics. Changes in rates between zip codes are due to factors such as population density, unemployment rates, median resident age, median income levels, poverty statistics, crime data, and the percentage of uninsured drivers on the road, for example.

Here is a list of the four priciest zip codes to buy Iowa car insurance. Annual premium rates in these neighborhoods can run from about $680 to around $1,750.

Zip Code	Pop Density	Unemployed %	Poverty %
51501 (Council Bluffs)	1,437	6.10%	19.20%

This Pottawattamie County zip code is home to roughly 35,000 people. The population density is lower than average for Council Bluffs. However, unemployment is almost twice the state average of 3.1 percent. The poverty rate in this neighborhood is also well above the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
51503 (Council Bluffs)	317	5.00%	10.40%

The population density is very low in this zip code, which is home to more than 37,000 residents. The unemployment rate is slightly higher than the state average, but the poverty rate in this zip code is below the state average. However, due to its close proximity to Omaha, insurance rates run high in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
51654 (Thurman)	10	5.50%	12.20%

Thurman is a city located about 20 miles south of the Omaha-Council Bluffs metro area. Less than 500 people live here. Unemployment is slightly high, but the poverty rate in this neighborhood exactly matches the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
51561 (Pacific Junction)	20	3.50%	4.70%

The population density here is very low, and the poverty rate is well below the state average. The unemployment rate in this zip code is only slightly higher than the state average. However, Pacific Junction is located just east of Raceway Park, a recreational driving facility. That could explain the higher rates on Iowa car insurance: People may drive faster near Raceway Park.

Now compare the above Iowa zip codes to the neighborhoods shown below. This is a list of the four cheapest zip codes (on average) in the state of Iowa to buy car insurance. Annual premium rates in the least expensive neighborhoods in Iowa can range from about $600 to around $1,480.

Zip Code	Pop Density	Unemployed %	Poverty %
50012 (Ames)	5,949	29.60%	0%

Ames is located in Story County, central Iowa, about 30 miles north of Des Moines. The city is home to Iowa State University. Although the population density os considered average for the region, the unemployment rate is a sheer embarrassment to the 3.1 percent state average. However, this is understandable, considering that the median resident age in this neighborhood is 19.3 years.

Zip Code	Pop Density	Unemployed %	Poverty %
50014 (Ames)	513	4.60%	36.70%

More than 28,000 people live in this 56-square-mile neighborhood. The population density is ultra light, and the unemployment rate is not too far above the state average. The poverty rate, however, is quite high around here.

Zip Code	Pop Density	Unemployed %	Poverty %
52246 (Iowa City)	2,459	3.40%	26.10%

This Johnson County zip code is home to more than 22,000 people. Unemployment is only slightly above state average, although the poverty rate is more than twice the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
50010 (Ames)	534	4.70%	22.00%

Roughly 32,000 people live in this neighborhood. The population density is light, although the poverty and unemployment rates are above the state average.

Overall, the state of Iowa is home to 1,055 zip codes scattered around 99 counties and comprising 934 cities, from Ackley to Zwingle and beyond. There is quite a variation in premium rates between the cheapest zip codes and the most expensive zip codes in Iowa to buy car insurance.

by admin