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Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Looking for cheap car insurance in Iowa? Hastings Mutual is the go-to option for many drivers, offering an average monthly premium of just $35 — but your mileage may vary.
In this article, we’ll delve into the details of car insurance in Iowa to help you find coverage that meets (or exceeds) the state minimums and fits your budget.
Iowa drivers enjoy some of the lowest car insurance rates in the country due to the state’s rural nature and low population density.
Hastings Mutual consistently stands out as one of Iowa’s most affordable car insurance options.
Iowa residents are required to purchase liability insurance in order to legally drive in the state.
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Even though average rates are a relatively affordable $76 per month in Iowa, you can still find ways to save. The easiest way is to compare quotes and find the cheapest company for you.
With that in mind, let’s take a look at the five Iowa car insurance companies with the cheapest average rates.
Company | Monthly Premium |
|---|---|
| Hastings Mutual | $35 |
| State Farm | $42 |
| Pekin Insurance | $48 |
| GEICO | $53 |
| Allied | $55 |
Hastings Mutual is the cheapest, but not by a large margin.
Remember, individual rates can vary significantly depending on your age, coverage choices, and other factors. We’ll explore these rating factors and their effect on your premiums in greater detail throughout the rest of this article.
How we chose the cheapest companies in Iowa
Our team analyzed thousands of rates from dozens of the top insurance companies in Iowa. Using that data, we listed the five cheapest options for Iowa drivers based on several key factors, such as age, coverage level, driving history, and more. All rates listed are based on someone who drives a 2016 Honda Accord and has the minimum limits for coverage in Iowa. The listed “full-coverage” rates include $500 deductibles for collision and comprehensive coverages in addition to state-minimum liability coverage.
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The average monthly cost of car insurance in Iowa is $76, making it the third-cheapest state in the nation. This affordability is largely due to Iowa’s low population density and reduced traffic congestion, which means fewer accidents and less risk for insurance companies.
Let’s take a look at how the Hawkeye State matches up to its neighbors as well as the nation as a whole.
Compared to some more densely populated states — including Missouri and Illinois — Iowa drivers enjoy the benefits of a competitive and budget-friendly insurance market. Iowa’s average rates are as much as 53% cheaper than neighboring states and more than 40% cheaper than the national average.
The level of coverage you choose has a big role in your auto insurance rates. The most affordable policy option is liability-only coverage at the state-minimum limits. This type of policy includes coverage for bodily injury and property damage liability but nothing else.
The table below shows the five cheapest companies for Iowa’s state-minimum coverage.
Company | Monthly Premium |
|---|---|
| Hastings Mutual | $16 |
| GEICO | $20 |
| State Farm | $23 |
| IMT Insurance | $25 |
| Auto-Owners | $27 |
Hastings Mutual offers the most affordable rates, at just $16 per month. However, it’s also worth comparing quotes from GEICO, State Farm, and other insurance companies to find the best fit for you.
Full-coverage car insurance provides a higher level of protection for you and your vehicle. It includes liability insurance but also comprehensive and collision coverage, which pay to repair or replace your vehicle after an accident or non-collision events like theft or vandalism.
These five companies offer the cheapest average full-coverage rates in all of Iowa.
Company | Monthly Premium |
|---|---|
| Hastings Mutual | $55 |
| State Farm | $61 |
| Pekin Insurance | $67 |
| Allied | $77 |
| GEICO | $86 |
Hastings Mutual remains the most cost-effective choice for full coverage.
But it’s interesting to note that while GEICO is competitive for liability-only coverage, its rates jump significantly for full coverage — yet another reason why it’s so important to compare quotes from as many companies as possible.
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Age is one of the most influential factors in car insurance premiums. Insurance companies tend to charge more for young drivers with less experience behind the wheel.
In the following sections, we’ll break down the cheapest car insurance for two distinct age groups: teens and seniors — two groups who face unique challenges when it comes to securing affordable coverage.
Finding affordable coverage as a teen driver can be challenging. Teenagers are considered some of the riskiest drivers on the road due to their limited driving experience and propensity for risky behaviors. That elevated risk results in higher insurance rates for this age group. But, luckily, rates usually begin to drop around age 25.
Here’s a look at the insurance companies offering the most competitive rates for Iowa teenagers, specifically 18-year-old drivers.
Company | Liability Only | Full Coverage |
|---|---|---|
| Hastings Mutual | $46 | $159 |
| GEICO | $52 | $191 |
| IMT Insurance | $68 | $176 |
| State Farm | $71 | $169 |
| Auto-Owners | $84 | $229 |
Full-coverage car insurance tends to be especially expensive for teen drivers, but Hastings Mutual has relatively affordable rates, at just $46 and $159 per month for liability-only and full-coverage policies, respectively.
GEICO also has great rates for liability coverage, at $52 per month, but State Farm may be a better choice for full coverage, with average rates just $10 more per month than Hastings.
As you approach retirement age, you can expect to pay some of the lowest rates for car insurance due to your years of experience behind the wheel and the fact that you likely drive fewer miles.
Let’s look at the insurance companies offering the cheapest rates for Iowa seniors based on 65-year-old drivers.
Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $17 | $74 |
| Hastings Mutual | $17 | $61 |
| State Farm | $22 | $55 |
| IMT Insurance | $24 | $79 |
| Western National | $28 | $121 |
While GEICO is the cheapest in this category, all five companies in the table offer relatively affordable premiums for liability-only coverage. On the other hand, State Farm offers the cheapest average rates for Iowa seniors, at just $55 per month.
When it comes to your car insurance premiums, nothing holds more weight than your driving record. Insurance companies rely heavily on your past driving behavior to measure your risk and calculate your premiums.
A clean driving record with no accidents or traffic violations signals responsible and safe driving habits, resulting in lower car insurance rates. But if you have a speeding ticket, at-fault collision, or other moving violation on your record in the last five years, you could face much higher rates from your insurer.
Let’s take a look at some of the most competitive insurers for various driving records.
When it comes to car insurance, a “good driver” is someone with a clean driving record, free from tickets or at-fault accidents. A clean record signals to insurance companies that you pose a minimal risk on the road, resulting in better car insurance premiums.
The following table shows the cheapest companies for Iowa drivers with a clean record.
Company | Liability Only | Full Coverage |
|---|---|---|
| Hastings Mutual | $16 | $55 |
| GEICO | $20 | $86 |
| State Farm | $23 | $61 |
| IMT Insurance | $25 | $88 |
| Auto-Owners | $27 | $99 |
Hastings Mutual continues to be a stand-out choice for responsible, accident-free drivers in Iowa, with rates that are well below the statewide average of $76 per month.
That being said, all the companies on this list have great rates that are less than one-third of the national average. Your best bet is to shop around and find the cheapest one for your unique profile.
Getting a traffic ticket can cause your auto rates to increase significantly. Average rates go up by 37% after just one ticket, according to Compare.com data.
This increase reflects the added risks that insurance companies perceive in drivers who’ve been cited for traffic violations.
Here’s a breakdown of the insurance companies offering the most competitive rates for Iowa drivers who’ve received one speeding ticket in the last five years.
Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $20 | $87 |
| State Farm | $26 | $66 |
| IMT Insurance | $28 | $108 |
| Western National | $29 | $141 |
| Cameron Mutual Insurance Company | $31 | $91 |
GEICO and State Farm both offer competitive liability rates in Iowa, but State Farm is the leader for drivers seeking full coverage. Its full-coverage rates are more than $20 cheaper per month than the next closest competitor.
Being involved in an at-fault accident can significantly raise your car insurance rates. Compare.com data shows rates surge by an average of 44% after just one at-fault accident.
But that doesn’t mean you just have to accept higher rates. Some companies specialize in high-risk drivers and offer competitive prices to people with recent accidents.
With that in mind, let’s take a look at which companies offer the cheapest average rates to Iowa drivers with a recent accident on their record.
Company | Liability Only | Full Coverage |
|---|---|---|
| Hastings Mutual | $22 | $69 |
| State Farm | $29 | $71 |
| Western National | $29 | $141 |
| Cameron Mutual Insurance Company | $31 | $91 |
| GEICO | $33 | $135 |
Hasting Mutual continues to stand out as a competitive choice for Iowa drivers seeking affordable coverage, whether you opt for liability-only or full coverage.
That said, rates among the top five companies are pretty comparable, offering drivers in this situation a range of options to consider.
A driving under the influence (DUI) conviction can have severe repercussions for your auto insurance rates. Average premiums skyrocket by a whopping 94% after one DUI, according to our analysis.
But that doesn’t mean there aren’t cheaper options out there. The following table shows the insurance companies offering the most affordable rates for drivers with one DUI on their record. Notice how all companies on this list offer average rates significantly cheaper than the statewide average.
Company | Liability Only | Full Coverage |
|---|---|---|
| State Farm | $26 | $66 |
| Western National | $29 | $141 |
| GEICO | $33 | $136 |
| West Bend Mutual | $37 | $120 |
| IMT Insurance | $40 | $159 |
In addition to higher insurance rates, drivers with a DUI can face a range of serious consequences, including jail time, fines, and having their license revoked. Penalties become more serious for repeat offenders.
State Farm offers the lowest rates, on average, for Iowa drivers with a DUI, with rates for full coverage dramatically lower than other companies in this category, at just $66 per month.
Auto insurance rates can vary significantly based on where you live, even within the same state. Insurance companies consider population density, traffic congestion, crime rates, and even local weather patterns when calculating premiums.
Here’s a comparison of average monthly premiums for some of Iowa’s largest cities.
City | Average Premium |
|---|---|
| Ames | $48 |
| Cedar Rapids | $57 |
| Council Bluffs | $52 |
| Davenport | $62 |
| Des Moines | $69 |
| Waterloo | $45 |
Waterloo and Ames have the cheapest rates, according to our analysis. Both have lower population densities compared to the capital city of Des Moines.
As the largest city in Iowa, Des Moines has more people, more cars on the road, and increased traffic, increasing the likelihood of accidents. All these factors could contribute to Des Moines’ higher rates.
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No matter your age, driving record, or location, here are some tips for finding cheap car insurance in Iowa.
Maintain a clean driving record. Insurance companies reward safe drivers with lower premiums, so steer clear of risky behaviors on the road.
Choose a higher deductible. Opting for a higher deductible means you’ll pay more out of pocket in the event of a claim, but it can lower your monthly comprehensive and collision premiums.
Bundle your policies. Many insurance companies offer discounts when you bundle your auto insurance with your homeowners or renters insurance policy.
Explore discounts. Ask your insurance company about available discounts, such as those for safe drivers, good students, or having safety features on your vehicle.
Shop regularly to compare quotes. Insurance rates change over time, and different companies offer different rates and coverage options. Shopping around can help you secure the most affordable coverage for your unique circumstances.
“As part of shopping around for insurance, consider the reputation of the insurance company. You can check their financial stability with your state’s insurance department,” says Jeffrey L. Brewer, department vice president of public affairs at the American Property Casualty Insurance Association (APCIA). “Also, ask around for recommendations as to the insurer’s reputation for providing service to their customers.”
Auto insurance is mandatory in Iowa. Drivers must maintain a minimum amount of liability coverage to comply with the state’s financial responsibility laws.
Those minimum limits are:
Bodily injury liability: $20,000 per person, $40,000 per accident
Property damage liability: $15,000 per accident
You must purchase at least the state-mandated minimum limits to comply with Iowa law. However, many drivers choose to purchase higher coverage limits to provide better protection for themselves and their assets in case of an accident.
Driving without insurance in Iowa is illegal and can result in various penalties, including fines, license suspension, and other consequences.
The fine amount depends on whether you were involved in an accident or not, with higher fines going to people involved in a collision while driving without insurance. The state may also suspend your car registration until you can present proof of insurance to have it reinstated.
If you’ve had your license suspended, the state may require you to file an SR-22 financial responsibility form to have it reinstated.
An SR-22 is a form your insurance company sends to the state to verify you have the required insurance coverage and to confirm the insurance company will notify the state if your insurance lapses for any reason.
There’s usually a fee associated with filing an SR-22, and not all companies will file one of these forms on your behalf.
Below, we’ve answered some of the most frequently asked questions about auto insurance in Iowa to help you make an informed decision about your coverage and premiums.
Hastings Mutual is the frontrunner for affordable car insurance in Iowa in several categories, including for drivers with a clean driving record and those with an at-fault accident on their record.
On average, car insurance costs $76 per month in Iowa. However, your rates may vary depending on your age, driving record, ZIP code, and other factors.
Iowa law requires drivers to purchase bodily injury liability with limits of at least $20,000 per person, and $40,000 per accident and property damage liability with limits of at least $15,000 per accident.
Drivers in Waterloo pay the cheapest rates for auto insurance, with an average premium of just $45 per month.
Driving without insurance in Iowa can result in a ticket, fines, and potential suspension of your driver’s license.
Car insurance is more affordable in Iowa than in many other states due at least partially to the state’s low population density and fewer number of cars on the road.
Sources
Centers for Disease Control, “Teen Drivers and Passengers: Get the Facts,” accessed October 20, 2023.
DrivingLaws, “Iowa OWI Laws and Penalties,” accessed October 20, 2023.
Iowa Demographics, “Iowa Cities by Population,” accessed October 20, 2023.
Iowa Insurance Division, “Automobile Insurance,” accessed October 20, 2023.
Kelley Blue Book, “Penalties for Driving Without Car Insurance by State,” accessed October 20, 2023.
Iowa Department of Transportation, “Suspensions/Revocations,” accessed October 20, 2023.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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