Living in Iowa, you’ve heard plenty of dumb jokes about your home state — but you don’t mind. You just smile, because you’re Iowa nice. You know Iowa is a fantastic place to live: It’s safe, it’s beautiful and everything is cheap, from housing prices to car insurance rates.
Why is Iowa Car Insurance so Cheap?
Out of all 50 states, Iowa has the second-cheapest auto insurance. Yep, the average Iowan’s insurance expenditure is half what someone in New York or New Jersey might pay. You can credit low population density and minimal traffic.
So wait. If Iowa rates are the norm in Iowa, then why would you need to compare quotes before you buy? Because you’re not average. Car insurance rates are highly personalized. That means your rates are affected by factors such as your age, your driving record, your marital status, your credit history, and even your job. Insurance companies use this information to determine your risk — but they all calculate it differently, resulting in quotes that may differ by $40 or more per month. In this article, we’ll walk you through the process of finding the cheapest possible Iowa auto insurance.
And if you want to skip all the explanations, you can just start comparing free quotes to find the best deal!
How Do You Find the Best Deal on Car Insurance in Iowa?
The simplest answer: Opt for minimum coverage. Iowa’s minimum insurance requirements are as follows:
- $20,000 per person and $40,000 per accident for bodily injury liability: This type of insurance pays for other people’s damages (like medical bills, lost wages, legal expenses, or pain and suffering) caused by an accident you’re responsible for. It also can pay for your legal defense, if you’re sued by someone hurt in an accident
- $20,000 per person and $40,000 per accident for uninsured motorist bodily injury liability: This coverage pays for injuries suffered by you and your passengers in an accident caused by someone with no insurance
- $15,000 for property damage liability: This pays for certain damages you may cause to other people’s property or vehicle in an at-fault accident
So if you’re on a tight budget, and you just need super-cheap Iowa car insurance so you can get your car on the road, select state minimum coverage when you’re comparing quotes on Compare.com. The quotes you see will be the absolute lowest we can find.
Cheap Liability Coverage in Iowa
Because Iowa’s insurance rates are so, so low, finding cheap liability car insurance should be a snap. Here’s how: Take five minutes to go on Compare.com and compare quotes from different insurers. You’ll want to pick state minimum insurance, which gives you $20,000 per person and $40,000 per accident in bodily injury liability, plus the same amount in uninsured/underinsured motorist coverage. You also get $15,000 in property damage liability.
Then, just check your liability insurance quotes to see how low they can go! When we ran the numbers for a 27-year-old single driver in Cedar Rapids, his quotes ranged from $43 to $65 per month. Your rates may be higher or lower — just compare to see your options.
Should I Buy More Than the Minimum Iowa Insurance?
The short answer: Yes. In 2016, the average auto liability claim for bodily injury was $16,110. That would be covered by a policy with a $20,000 limit per person — but that’s just an average. If you find yourself involved in a more serious accident, like that insane 50-car pileup on I-35, you could end up facing claims that far exceed what a minimum-limits policy will cover.
How Do I Find Cheap Car Insurance With Reliable Coverage?
Using our quote comparison tool can help you find the perfect compromise: insurance that gives you and your car decent levels of coverage, but still is ultra-affordable.
Here’s how: Start low, then increase your coverage levels when you’re comparing quotes side by side. Here’s an example: We ran the numbers for a 27-year-old single guy with a good driving record who’s shopping for auto insurance in Cedar Rapids. For state minimum insurance, his quotes ranged from $43 to $65 per month. Not bad!
But our Cedar Rapids driver drives a two-year-old Accord, which means he needs comprehensive/collision coverage too. (This coverage pays for damage to your own car caused by a crash, hail, a hurricane, etc.) So he upgrades slightly to Basic coverage, which adds comprehensive/collision to the 20/40/15 minimum insurance. This makes his rates go up, of course: now, his quotes range from $135 to $175 per month.
(Pro tip: When you’re comparing quotes, don’t forget to factor in the down payment required for pay-as-you-go insurance. You can save a lot if you’re able to pay upfront instead.)
The next level up is Plus. Plus coverage includes 50/100/50 limits for bodily injury, uninsured/underinsured motorist and property damage. It also includes $2,000 in medical payments, which pays for necessary medical, dental, and hospital expenses for you and your passengers after an accident, no matter who’s at fault.
The deductible for comprehensive/collision drops from $1,000 to $500, and towing/rental car coverage gets added. Our Cedar Rapids driver gets quotes for Plus coverage ranging from $137 to $178 per month. That’s a lot more protection for just $2 or $3 more per month! See why it’s so important to compare?
Is it Possible to Find Cheap SR-22 Insurance in Iowa?
It’s easy to get cheap auto insurance when you have a spotless driving record. What if you’ve had a few issues, like an OWI and/or a license suspension?
We can still help you find the best quotes for SR-22 insurance in Iowa. We ran the numbers again for our 27-year-old driver, this time giving him an SR-22 insurance requirement for a recent OWI. Now his best quotes for Basic coverage range from $154 per month (paid up front) to $183 per month (with a $184 down payment). Not as cheap, but still affordable.
What Happens if I Drive Without Insurance in Iowa?
Iowa has a pretty low number of uninsured drivers: just 8.7 percent, compared to a national average of around 13 percent. Don’t be tempted to be one of them! Driving uninsured can get you in serious trouble.
If you’re caught simply driving without insurance, you’ll have to pay a fine of $250 (or do community service); your license plates and/or your vehicle can be impounded; and you’ll have to pay the towing, storage and administrative fees. Not fun.
It’s even less fun if you get into an accident and you’re uninsured. If you cause any injuries or more than $1,500 in damage, your license and registration will be suspended for 12 months, for all vehicles you own.
The only way to avoid this is to prove financial responsibility, which (if you don’t have insurance) means posting a check that’s sufficient to cover all the damages; file an agreement to pay the other damaged or injured parties on an installment plan; or get a court decision relieving you of all liability. There are a few other ways too, but none of them are easy. Getting your license back is almost like getting it for the first time: You’ll have to pass a driving test, a knowledge test and a vision screening.
So don’t drive uninsured! If you’re having trouble finding Iowa auto insurance you can afford, we can help. We’ll show you accurate, personalized and impartial quotes so you can choose the best one for you.
What Fees Will I Have to Pay When Buying a Car in Iowa?
If you’re in the market for a new or used car, you’ll need to budget for more than just the vehicle’s sticker price. You’ll be on the hook for basic DMV fees like title, license plate, and registration fees no matter where and how you purchase your new car, truck or SUV, as well as buying a new car insurance policy for your car. But some buyers will find themselves with additional fees such as sales tax, documentation fees, personal property tax, emissions and inspection fees, hybrid and electric vehicle fees, lien recording fees and a slew of other costs.
Check out Compare.com’s comprehensive vehicle costs breakdown to make sure you account for all the added fees you might be on the hook for when buying a car in Iowa.
Cheapest Cities for Car Insurance in Iowa
The area you live in is one of the main factors that determine how much or how little you pay for car insurance. If your area has a high auto theft rate, you may pay more. If there is very little traffic on your way to work, you may end up paying less. To help you see how rates vary from city to city, check out our rate comparison table below.
|City||Average Monthly Car Insurance Premium|
Click on the name of each city in the table above to find detailed breakdowns on all the factors that go into calculating your monthly premium. Here, you’ll find all the information you need on how things like driving record, age, gender, vehicle make and model, and more will affect how much you pay for car insurance in each locality.
And if you want to jump right in and see how much you’ll pay, simply enter your ZIP code below and find your best rate in minutes!