Cheap Car Insurance Iowa: Top Companies 2021

Last modified: December 30, 2020

Finding cheap car insurance, Iowa, requires a substantial amount of shopping around. Even though average car insurance prices in the Hawkeye State are lower than the national average, rates vary by company and situation. In this article, we bring you a complete guide on where and what to look for when trying to find affordable auto insurance.

In this guide, you can find the minimum state requirements for Iowa, auto insurance as well as the state traffic rules, regulations, average insurance costs, and cheapest providers. We will also provide detailed reviews about each insurance company to help you in your hunt for the best affordable car insurance in Iowa.

What are the State Minimum Requirements?

The minimum Iowa car insurance requirements are as follows:

All drivers must carry liability coverage of

o   Bodily injury liability – $20,000 per person

o   Bodily Injury liability – $40,000 per accident

o   Property Damage – $15,000 per accident

You can also avail the many optional coverage options such as comprehensive coverage, medical payments, rental car reimbursement, roadside assistance, underinsured and uninsured motorist coverage, etc.

Iowa is not a no-fault state. In case of an accident, your insurance company and the authorities will determine who is at fault before filing for a damage claim. If you don’t have insurance coverage, you will end up paying for a lot of damages from your own pocket.

It is also illegal to drive in the State without Iowa minimum car insurance, so make sure you keep proof of insurance coverage at all times.

Average Costs

The average cost for full coverage auto insurance in Iowa is $1,659 per year. However, you can find cheaper auto insurance if you opt for the minimum insurance coverage required by law. Iowa car insurance rates vary by company, city, and personal profile. You can get full coverage for around $1,000 per year, provided you search around and get multiple quotes from different companies.

The table below lists the average cost of car insurance in Iowa by age.

Age Average Cost
20-30 $1,203
30-40 $974
40-50 $899
50-60 $856

In Iowa, young drivers pay a higher premium on their car insurance than older, more experienced drivers. However, Iowa offers some of the cheapest car insurance rates for young drivers, 16 years, and aged drivers around 70 years of age.

The table below lists average car insurance quotes, Iowa by gender.

Gender Average Cost
Male $1,015
Female $1,009

In Iowa, unlike other states, females enjoy lower car insurance rates than males. The average female driver pays around 1% less than the average male driver. Excellent female drivers with a good credit record and no tickets can get lower insurance rates provided they shop around to get multiple quotes.

Insurance rates in Iowa also vary by city. The table below lists the average rates in different cities.

City Average Rate
Des Moines $1,677
Cedar Rapids $1,595
Davenport $1,694
Sioux City $1,778

Car insurance rates, Cedar Rapids, Iowa, are the lowest among the four big cities in the State mentioned above. Rates in Cedar Port are lower than the state average. Des Moines and Davenport have average car insurance rates around the state average. Sioux City has the highest car insurance rates out of the four cities mentioned above.

Cheapest Providers

As we’ve mentioned earlier, you will have to conduct substantial research if you want to find cheap auto insurance, Iowa. The search becomes even more difficult if your driving record or credit history have been red-flagged. Here, we mention the cheapest providers, even for those who don’t have a perfect record.

Cheapest Full-Coverage Auto Insurance

If you truly want the cheapest car insurance, Iowa, you may want to look at rates for the mandatory liability coverage as that is bound to be the cheapest. However, it does not offer enough protection, and you may want to opt for additional liability coverage and other packages as well.

  • State Farm offers the cheapest full coverage auto insurance in Iowa at $1,146 per year.
  • IMT insurance also offers affordable full coverage auto insurance in Iowa at $1,348 per year.

Cheapest Auto Insurance for Drivers with a DUI

If you’re been found driving under the influence, your car insurance premium rates are bound to rise. The average rate for auto insurance for drivers with a DUI is around $1,740. However, you can find cheap car insurance, Iowa if you search around.

  • Geico offers the lowest rates for drivers with a DUI at $471 per year.
  • State Farm also offers good deals for drivers with a DUI providing auto insurance coverage for $616 per year.

Keep in mind that other factors such as age, gender, credit record, and driving violations on record all impact the insurance rates.

Cheapest Car Insurance in Iowa for Speeding or Distracted Driving Tickets

Speeding or distracted driving tickets adds around 21% to a driver’s auto insurance cost.

  • State Farm offers the cheapest coverage for drivers with a ticket at $1,229 per year.
  • IMT Insurance also offers a good deal at $1,728 per year.

You may be able to find cheaper insurance rates if you opt for minimum coverage or have an excellent credit record.

Cheapest Car Insurance Companies in Iowa for Drivers With Bad Credit

Poor credit record can substantially increase the cost of auto insurance in Iowa.

  • IMT offers cheap auto insurance coverage, Iowa for people with bad credit at $1,549

Farm Bureau and American Family also offer rates lower than the state average of $2,551 for car insurance rates for people with bad credit records.

Best and Cheapest Car Insurance for Seniors in Iowa

Car insurance costs peak after drivers cross 60 years of age.

  • Hastings Mutual offers the cheapest car insurance rates at $671 per year for seniors, which is significantly lower than the average rate for the said age bracket.

Geico and IMT also offer affordable rates, and, of course, your driving history and credit record can also help get you a good deal.

Cheapest Car Insurance for Students

Car insurance rates for students are significantly higher than other age brackets. However, rates in Iowa are lower than the national average.

  • Geico offers the cheapest car insurance, Iowa, for students at $1,118 per year.
  • Progressive offers the second-best rates at $1,515 per year.

Cheap Insurance for Young Drivers in Iowa

Young drivers pay a lot more for auto insurance than seniors. If you are a teenager applying for auto insurance, look at the following companies:

  • IMT insurance – $592 per year ( minimum coverage) and $2,555 per year (full coverage)
  • Farm Bureau – $715 per year (minimum coverage) and $3,088 per year (full coverage)

You may also want to look at State Farm and Geico as they, too, offer pretty affordable auto insurance coverage.

Best and Cheap Car Insurance for Families

Rates for families vary by the number of family members covered under the insurance, their age, gender, and other details. Make sure to do your research and obtain multiple quotes before purchasing an insurance policy, especially if you want cheap car insurance, Iowa.

Best For Veterans

The best option for veterans, serving personnel, and their families is USAA. The company caters to a niche and offers the cheapest rates to its target market. If you are a serving military member, veteran, or immediate family member of either, you can visit the website to ask for a quote.

Iowa Auto Insurance, Traffic Rules, and Penalties

In order to qualify as a road-legal driver, every driver must have the mandatory minimum auto insurance as per Iowa car insurance laws. By law, you must also carry proof of insurance, vehicle identification number, dates for which the policy is valid, and the insurer’s contact information.

Failure to present the above-mentioned documents or to drive as an uninsured motorist can result in the following punishment:

  • Fine of up to $250
  • Community services
  • Impounding of the vehicle and license plate (owner to pay all towing and storage charges)

As per Iowa auto insurance laws, you will also end up paying a higher insurance rate when you try to purchase insurance after paying the penalty.

Best Car Insurance Companies in Iowa

Company Best For Market Share AM Best Ratings Lowest Rates
State Farm Cheap full coverage 21.05% A++ $616 per year
Allstate Cheap minimum coverage 3.28% A+ $863 per year
American Family Drivers with an at-fault crash 6.42% A $749 per year
Geico Drivers with poor credit 3.74% A++ $473 per year
USAA Veterans 6% A++ $614 per year
IMT Drivers with tickets 3.35% A $592 per year
Progressive Drivers with DUI 17.62% A+ $743 per year

 

State Farm

State Farm is one of the biggest insurance service providers in the state and offers some of the best rates for full coverage car insurance, Iowa. The company has an excellent customer satisfaction rate and financial stability rating.  It has an above-average claim handling and affordability rating as well. It is the company to opt for if you are looking for full auto insurance coverage in Iowa.

Allstate

Allstate offers the best Iowa car insurance rates for minimum coverage. It does not hold a major portion of the overall market share but has customer satisfaction, claims handling, and affordability ratings similar to those of State Farm. It also has excellent financial stability ratings, making it an ideal option for drivers looking for cheap minimum auto insurance coverage in Iowa.

American Family

American Family offers good deals to drivers with an at-fault crash on their record. However, the company has poor customer satisfaction and claims handling rating. It also ranks quite low on the affordability index, so you may want to look at discounts to get a lower price. The company does have an excellent financial strength rating, and you may be able to get low Iowa car insurance quotes as insurance is cheaper and more affordable in Iowa.

GEICO

Geico is one of the few companies known for offering affordable insurance rates across the United States. It is one of the best auto insurance companies in Iowa and gives you cheap coverage even if you have a bad credit record. The company also has an excellent financial strength rating, market reputation, and customer satisfaction rate. 

USAA

USAA caters to a niche target market of veterans or military personnel and their immediate family members. USAA has the best financial strength, customer satisfaction, claims handling, and affordability ratings among all other insurance providers.  Unfortunately, not everyone can avail the amazing rates offered by the company.

IMT

IMT insurance is another acclaimed insurance provider. The company has an excellent market reputation and financial strength ratings. With IMT, you not only get some of the cheapest auto insurance in Iowa but can also avail of the numerous discounts the company offers. If you have a clean driving record with no violations or tickets, you can get a really low insurance quote from IMT.

Progressive

Progressive has excellent financial stability and affordability ratings. However, it has average customer satisfaction and claims handling ratings. Here you can get cheap car insurance, Iowa, especially with the discounts they offer. However, you may have trouble during claims handling and processing.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

Why Is Auto Insurance In Iowa So Expensive?

Auto insurance in Iowa is pretty affordable. The average insurance rate in the State is substantially lower than the national average.

Is Iowa No-Fault State?

No, Iowa is not a no-fault state. It follows an at-fault or tort system where it identifies the driver at fault before filing for claims with their insurance company.

How to Reduce Car Insurance Costs in Iowa?

If you want reduced car insurance rates in Iowa, you should look around and ask for quotes from various companies before purchasing insurance. You can also opt for the minimum mandatory coverage to get the cheapest possible rates.

What is the Best Auto Insurance in Iowa?

State Farm is the best auto insurance company in Iowa, holding the largest market share and offering the most affordable rates.