Cheap Car Insurance

Cheaper Rates Today in IA

Car Insurance in Iowa

  • Compare cheap car insurance quotes in IA
  • Get the cheapest car insurance from top companies like Allstate, Progressive, and more!
  • Save hundreds a year on your Iowa car insurance.

Cheap Car Insurance

Cheaper Rates Today in IA

Car Insurance in Iowa

  • Compare cheap car insurance quotes in IA
  • Get the cheapest car insurance from top companies like Allstate, Progressive, and more!
  • Save hundreds a year on your Iowa car insurance.

Cheap Car Insurance Companies In Iowa

The average semiannual cost of car insurance in the state of Iowa is $749.71. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Iowa across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

CompanySemi Annual Permium
Travelers$640.50
GEICO$665.00
Nationwide$672.00
USAA$700.00
Allstate$796.50
State Farm$858.00
Farmers$982.50
Progressive$1,223.00

*Data Methodology – Updated 2/29/2024

The Iowa car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in IA. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Iowa Minimum Liability Coverage

Iowa requires a minimum of $20,000 in bodily injury liability coverage per person, $40,000 in bodily injury liability coverage per accident, and $15,000 in property damage liability coverage. This is known as the 20/40/15 minimum coverage.

This coverage pays for bodily injuries and property damage caused by you in an accident, up to the limits of your policy. The bodily injury coverage applies per person, so the $20,000 covers injuries to one person. The $40,000 covers total injuries to multiple people in one accident. The $15,000 covers damage to property like other vehicles, signs, and fences.

This minimum coverage is required by Iowa law to register and legally drive a vehicle in the state. If you are caught driving without insurance, you will face penalties like fines, license suspension or revocation, and possible jail time.

Penalties for Driving Without Insurance in Iowa

If you are caught driving without insurance in Iowa, you can face serious penalties. The minimum penalties include:

A $500 fine for the first offense. Fines increase for subsequent offenses, up to $1,500 for a third or subsequent offense within three years.

A license suspension of up to one year for the first offense. Suspensions increase for subsequent offenses, up to two years for a third or subsequent offense within three years.

The vehicle registration for the uninsured vehicle will be suspended until proof of insurance is provided.

You may also be required to provide proof of future financial responsibility, which means purchasing SR-22 insurance for three years. SR-22 insurance is high-risk insurance that is more expensive.

Auto Insurance Rates in Iowa

Auto insurance rates in Iowa can vary greatly depending on the city and other factors. Iowa has some of the lowest average auto insurance rates in the country, but there are still ways to save money.

The first thing to consider is shopping around. Get quotes from several different insurance companies to compare rates. Some companies will offer lower rates than others based on your specific circumstances. Things like your driving record, credit score, age, and years of experience all factor into your rate.

Driving record is a big one. If you have a clean driving record with no accidents, speeding tickets, or other violations, you will likely qualify for the best rates. You may also be eligible for a discount if you complete a safe driving course.

Credit score can also impact your rate, as insurers view this as an indicator of how responsible you are with money and managing risk. A good credit score will often save you money on premiums.

The type of vehicle you drive also matters. Smaller, cheaper, and safer vehicles with good safety features tend to cost less to insure. You may also qualify for lower rates if you bundle your auto insurance with other policies like homeowners or life insurance.

Some cities in Iowa have higher auto insurance costs than others due to factors like more accidents, claims, and thefts. Des Moines, Cedar Rapids, and Davenport tend to have higher average rates, while smaller towns and rural areas are often cheaper.

Low Cost Car Insurance Programs and Discounts in Iowa

Car insurance is required by law in Iowa, but the cost of coverage can still be a burden, especially for those on a tight budget. Thankfully, there are several programs and discounts available to help make coverage more affordable. Here are some options to consider:

  • Good Student Discounts: Many insurance companies offer good student discounts for students who maintain at least a B average. Discounts can range from 5% to 25% off your premiums. To qualify, you’ll need to provide report cards or transcripts to your insurance agent or company.
  • Multi-Car Discounts: Bundling multiple vehicles on the same policy can save you money, often 10% or more. If you have teenage drivers, insuring them with your policy may also qualify for a multi-car discount.
  • Defensive Driving Course Discounts: Completing an approved defensive driving course can earn you a discount of around 5% for several years. Many insurance companies offer their own courses or partner with driving schools that provide the discount.
  • Low-Mileage Discounts: If you drive fewer than 7,500 to 10,000 miles per year, you may qualify for a low-mileage discount of up to 10%. Provide your estimated annual mileage to your agent or insurance company.
  • Income-Based Plans: Some insurance companies offer plans tailored for lower-income individuals, providing more affordable rates. Check with the major carriers in your area to see if such plans are available.
  • Government Assistance: If your income qualifies, you may be eligible for government assistance programs that can help pay for your auto insurance coverage. Research programs offered in your state.

Iowa Car Insurance Statistics

Iowa has some interesting statistics when it comes to car insurance. Iowa has relatively low premiums compared to other states. According to the National Association of Insurance Commissioners, Iowa ranks 41st for the most expensive average annual premiums in the country per year.

Iowa has a lower frequency of accidents compared to other states. Data from the Insurance Institute for Highway Safety shows Iowa ranks as the 7th safest state with 4.9 fatalities per 100,000 people. Fewer accidents mean lower insurance costs.

Iowa also has a lower population density compared to many states, which helps keep insurance costs lower. There are around 55 people per square mile in Iowa compared to the U.S average of around 90 people per square mile. Less congestion means fewer opportunities for accidents and claims.

Iowa also has strict laws in place that help keep insurance costs down. For example, Iowa has a mandatory seat belt law, which has been shown to reduce the number of serious injuries in car accidents. Iowa also has a “primary enforcement” law for seat belt use, meaning police can stop and ticket drivers and passengers solely for not wearing a seat belt.

The 10 Largest Iowa Car Insurance Companies

Iowa drivers have many options when shopping for car insurance. The following are the 10 largest auto insurance companies in Iowa based on market share and premium volume.

  1. State Farm – State Farm has the largest market share in Iowa at around 20%. They offer a wide range of insurance products including home, life and health in addition to auto.
  2. Farm Bureau Financial Services – Farm Bureau has the second largest market share in Iowa at around 11%. They offer auto, home, life and farm insurance to members of the Iowa Farm Bureau Federation.
  3. Nationwide – Nationwide has around 9% of the Iowa auto insurance market. They offer a variety of discounts and coverage options for Iowa drivers.
  4. Allstate – Allstate has about 8% of the Iowa auto insurance market. They are known for offering discounts for safe drivers, good students and those who bundle policies.
  5. American Family Insurance – American Family has around 7% of the Iowa auto insurance market. They have been serving Iowa customers for over 80 years and offer many discounts.
  6. Liberty Mutual – Liberty Mutual has a market share of around 5% in Iowa. They are known for offering a wide variety of coverage options for Iowa drivers.
  7. Progressive – Progressive has a market share of around 5% in Iowa. They are known for offering some of the most customizable policies for Iowa drivers.
  8. Auto-Owners Insurance (AO) – AO Insurance has a 4% market share in Iowa. They are known for offering affordable rates and high customer satisfaction.
  9. Farmers Insurance – Farmers has around 3% of the Iowa auto insurance market. They offer many discounts and coverage options for Iowa drivers.
  10. EMC Insurance – EMC is an Iowa-based insurer with a market share of around 2%. They offer auto, home, life and commercial insurance primarily to customers in Iowa and surrounding states.