Cheap Car Insurance, Iowa: A Complete Guide for Drivers

Auto insurance is mandatory for every driver in Iowa, but the costs vary depending on many aspects. As a driver in the state, you may be looking for ways to lower your premiums while still meeting the requirements for coverage.

In this guide, we'll explore everything about Iowa auto insurance, including average costs, the factors that influence rates, the most affordable companies, and practical tips for finding cheap car insurance in Iowa.

Average Cost of Car Insurance in Iowa

The average cost of auto insurance in Iowa is lower compared to the national average. Iowa drivers can expect to pay between $1,700 and $2,200 per year for a standard full coverage car insurance policy.

However, it can be higher or lower depending on your driving history and personal profile. We compare car insurance quotes to help you find the cheapest coverage option.

Factors Affecting Iowa Car Insurance Rates

Some of the things auto insurers look at when determining your rates include:

1. Driving History: If you have a clean driving record, you'll pay less for insurance. Drivers with speeding tickets, accidents, or DUIs will likely face higher premiums.
2. Age: Young drivers, especially teenagers, often face higher rates due to their inexperience behind the wheel. On the other hand, older drivers may receive lower rates.
3. Vehicle Type: The make, model, and age of your car can impact your rates. For example, newer or luxury cars often cost more to insure because they are more expensive to repair or replace.
4. Location: Auto insurance rates can differ by city and even by neighborhood. Urban areas with more traffic and higher rates of theft or accidents tend to have higher premiums than rural areas.
5. Coverage Type: The level of coverage you choose will also affect your premium. Basic liability insurance is the cheapest option, while comprehensive and collision coverage will increase your premiums.
6. Credit Score: In Iowa, your credit history can also affect your insurance rates. People with better credit scores tend to pay lower premiums because providers see them as less risky.

Cheap Auto Insurance, Iowa, for All Age Groups

Teenagers

Insurance premiums are usually the highest for teens (age 17) due to their lack of driving experience. The rates are often higher for male teenagers as they are more likely to engage in high-risk behavior.

Teens can find the best rates with Pekin Insurance and Geico. Pekin Insurance is the cheapest for female teens at $3,034, while Geico offers the lowest rates for males at $3,363 per year.

Parents should consider adding their teenager to an existing policy to help lower prices. Also, look into Iowa car insurance discounts for teens, such as maintaining good grades.

Young Adults

Drivers aged 25 will have lower insurance rates as they have more experience on the road. However, insurance for young adults still remains higher than for older drivers. People in this category can find an affordable auto insurance policy with Pekin Insurance. They offer the cheapest premiums of $1,101 for females and $1,106 for males.

Adults

Adults in their 40s enjoy even lower rates, as insurers consider them more experienced and less likely to be involved in accidents. Pekin offers the lowest average rates for adults: $977 per year for females and $956 per year for males.

Seniors

Seniors aged 60 also receive lower insurance rates and are often eligible for low-mileage discounts. Pekin is the most affordable car insurance provider for seniors in Iowa. The provider offers average annual rates of $925 for females and $903 for males.

Cheapest Iowa Car Insurance for High-Risk Drivers

If you have a history of traffic violations, accidents, or other driving issues, providers in the state may consider you a high-risk driver. Unlike good drivers, high-risk drivers often face higher insurance premiums. However, you can find affordable options by comparing car insurance quotes from multiple providers.

Speeding Ticket

Drivers with a speeding ticket on their record can expect their insurance rates to increase. Pekin offers the lowest average premium for people with one speeding violation at $1,216 per year. Progressive and USAA also offer low rates. However, note that USAA is only available to current and former military personnel and their family members.

Accident

Being involved in even one at-fault accident can raise your premiums. A car accident can increase your rates by 50% or more. Pekin Insurance offers the cheapest sample premium for people in this category, with an average annual rate of $1,270.

DUI

A DUI conviction in Iowa is the most serious of the three. It can increase your premiums by over 100%. Progressive has the lowest average rate for these drivers in Iowa at $1,183 per year.

Cheapest Auto Insurance, Iowa by City

While the average car insurance cost in Iowa is affordable, rates can vary by city. Metropolitan areas such as Des Moines and Cedar Rapids have higher rates than rural areas. The cities in Iowa with some of the lowest insurance rates are:

Cheapest Car Insurance, Iowa, for Drivers with Poor Credit

In Iowa, your credit history can affect insurance rates. Drivers with higher credit scores tend to pay lower premiums, while those with lower scores pay more. Travelers is the cheapest company in this category, with an average rate of $1,695.

Iowa State Minimum Coverage Requirements

Iowa law requires drivers to carry a minimum amount of car insurance. The state’s minimum levels are as follows:

• $20,000 for bodily injury liability per person
• $40,000 for bodily injury per accident
• $15,000 for property damage liability

Bodily injury liability helps cover the medical expenses of the other people who are injured in an at-fault accident. On the other hand, property damage liability helps cover the repair or replacement of damaged property. It can also help with legal expenses.

While these minimum limits make sure drivers are financially responsible, they may not offer enough coverage in most cases involving multiple cars and people. It is why many motorists get higher coverage limits. However, before choosing this, make sure you can maintain the financial responsibility.

Iowa Optional Coverages

In addition to the minimum required coverage, Iowa drivers may also choose from additional coverages, including:

• Collision Coverage: Covers damage to your vehicle resulting from a collision. Your lender or lessor may require this if you lease or finance your car.
• Comprehensive Coverage: Protects against non-collision damage, including theft, and natural disasters. Your lender or lessor in Iowa may require it.
• Uninsured/Underinsured Motorist Coverage: Protects you if you're in an accident with a driver who has too little or no insurance.
• Rental Reimbursement: Pays for a rental car if your insured vehicle is totaled, stolen, or damaged.
• Roadside Assistance Coverage: Helps pay for emergency on-site services after a car breakdown. It can include battery replacement and tire changes.

Tips for Getting the Cheapest Car Insurance in Iowa

Here's how you can save money on car insurance in the state:

1. Shop Around: Don’t settle for the first quote you receive. Get car insurance quotes from multiple providers to compare rates.
2. Bundle Policies: Many insurers offer discounts if you bundle auto insurance with other types of coverage, like homeowners' or renters' insurance.
3. Increase Your Deductible: A higher deductible can lower your premiums. Just make sure you can afford to pay it out of pocket in an accident.
4. Take Advantage of Discounts: Many insurers offer discounts for safe driving, low mileage, good grades, and more. Ask your provider what you qualify for.
5. Drive a Safe Car: Choose a vehicle with high safety ratings and low repair fees, so it costs less to insure.

Frequently Asked Questions

What Is Full Coverage Car Insurance in Iowa?

Full coverage insurance in Iowa includes liability coverage, collision, and comprehensive coverage. It protects you in situations such as accidents, theft, vandalism, and damage to your vehicle.

What Is the Best Car Insurance Company in Iowa?

The best insurance provider for you will depend on your profile and driving history. However, according to US News, Pekin Insurance offers cheap auto insurance in Iowa to most drivers, making it the most affordable provider in the state.

Is Iowa a No-Fault State?

No, Iowa is not a no-fault state. This means that in a car accident, the at-fault driver is responsible for the damages.

What Kind of Car Insurance Do I Need if I Hit a Deer?

If you hit a deer, you will need comprehensive coverage, which protects against non-collision incidents like animal strikes. The state's minimum required coverage does not pay the costs of repairs in such incidents.

What Happens if the Person At Fault in an Accident Has No Insurance in Iowa?

If the at-fault driver has no insurance, you can file a claim with your own insurance company if you have uninsured motorist coverage. If you don’t have this coverage, the Iowa Department of Transportation may require you to pursue legal action against the at-fault driver. If you have been denied insurance and are therefore an uninsured driver, use the Iowa Insurance Division to find suitable coverage.

What Happens to My Car Insurance if I Move Out of Iowa?

Rates and minimum coverage rules vary by state, so your premium will be recalculated when you update your address. For example, someone moving from Iowa might compare the cheapest car insurance in Texas or look at how prices change in states like California, where traffic patterns and insurance laws differ.