The Cheapest Auto Insurance in Iowa in 2023

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.

Key Takeaways:

• 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.

Iowa’s Cheapest Car Insurance Companies

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.

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.

The Average Cost of Iowa Car Insurance

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.

Cheapest Car Insurance Rates for State-Minimum Insurance: Hastings Mutual

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.

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.

Cheapest Car Insurance Rates for Full-Coverage Insurance: Hastings Mutual

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.

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.

Compare Iowa Auto Insurance Rates by Age

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.

Cheapest car insurance for Iowa teens: Hastings Mutual

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.

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.

Cheapest car insurance for Iowa seniors: GEICO

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.

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.

Compare Iowa Auto Insurance Rates by Driving Record

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.

Cheapest car insurance for good drivers in Iowa: Hastings Mutual

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.

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.

Cheapest car insurance in Iowa after a ticket: GEICO

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.

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.

Cheapest car insurance in Iowa after an accident: Hastings Mutual

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.

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.

Cheapest car insurance in Iowa after a DUI: State Farm

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.

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.

The Cheapest Cities for Car Insurance in Iowa

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.

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.

5 Ways to Get Cheap Car Insurance in Iowa

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.”

Iowa Auto Insurance Requirements

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.

Penalties for driving without auto insurance in Iowa

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.

SR-22 auto insurance in Iowa

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.

Iowa Auto Insurance FAQs

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.

Which company has the cheapest car insurance rates in Iowa?

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.

How much is car insurance per month in Iowa?

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.

What is the minimum coverage required for car insurance in Iowa?

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.

Which city has the cheapest car insurance in Iowa?

Drivers in Waterloo pay the cheapest rates for auto insurance, with an average premium of just $45 per month.

What happens if you get caught driving without insurance in Iowa?

Driving without insurance in Iowa can result in a ticket, fines, and potential suspension of your driver’s license.

Why is car insurance so cheap in Iowa?

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.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes 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 quotes listed in this article have been gathered 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 drivers with insight into how auto insurance companies determine their premiums.

Sources

1. Centers for Disease Control, “Teen Drivers and Passengers: Get the Facts,” accessed October 20, 2023.
2. DrivingLaws, “Iowa OWI Laws and Penalties,” accessed October 20, 2023.
3. Iowa Demographics, “Iowa Cities by Population,” accessed October 20, 2023.
4. Iowa Insurance Division, “Automobile Insurance,” accessed October 20, 2023.
5. Kelley Blue Book, “Penalties for Driving Without Car Insurance by State,” accessed October 20, 2023.
6. Iowa Department of Transportation, “Suspensions/Revocations,” accessed October 20, 2023.