The Complete Guide to Iowa Car Insurance
Lemonade is on the way to the Hawkeye State and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things IA car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in Iowa?
Car insurance in Iowa averages $170/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Des Moines | $167 |
| Cedar Rapids | $162 |
| Davenport | $166 |
| Sioux City | $178 |
| Ankeny | $149 |
Source: ValuePenguin
Why is car insurance so low in Iowa?
Iowa drivers face unique risks that drive insurance costs
Uninsured drivers
11.3% of drivers in Iowa are uninsured vs. 13% nationally, lowering costs for everyone else.
Car theft
FBI data shows there were 4,291 reported motor vehicle thefts in 2024 in IA, down 17% from the previous year.
Natural disasters
IA has a relatively low FEMA disaster rating of 52, with the highest risks of tornado and inland flooding, driving up comprehensive coverage costs.
What car insurance do I need in Iowa?
All Iowa drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for Iowa drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Bodily injury liability | $20,000 (per person) $40,000 (per accident) | Medical bills, lost wages, and other costs when you hurt someone else in an accident | Your own injuries, damage to your car, amounts above your policy limits |
| Property damage liability | $15,000 | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
What additional car insurance coverages are offered in Iowa?
Beyond state minimums, these optional coverages provide
extra protection for Iowa drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in Iowa?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from field hopping on farm trails
How much car insurance do I need in Iowa?
You need enough coverage to protect yourself financially when accidents happen. If your car needed major repairs, could you afford these local Iowa labor rates? Keep in mind, parts and materials cost extra.
| City | Body repair | Frame repair | Mechanical repair | Paint repair |
|---|---|---|---|---|
| Cedar Rapids | $90 | $112 | $141 | $90 |
| Ankeny | $86 | $106 | $150 | $86 |
| Des Moines | $86 | $106 | $150 | $86 |
| Bettendorf | $86 | $101 | $163 | $86 |
| Council Bluffs | $83 | $107 | $153 | $83 |
Source: Caliber
What happens if I drive without insurance in Iowa?
Iowa takes uninsured driving seriously, and the penalties add up fast.
Fines
$325 for basic violations, $645 mandatory if you’re in an accident without insurance.
Suspension
Plate removal or impoundment at officer’s discretion. Accidents can mean up to 12 months suspended.
Jail time
Iowa focuses on fines and suspensions – no jail time for insurance violations.
What do you need to get a car insurance quote in Iowa?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in Iowa?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
Iowa car insurance FAQs
Is Iowa a no-fault state?
No, Iowa isn’t a no-fault state. Iowa follows at-fault insurance, so injured drivers can pursue claims against the responsible party. You can recover damages through insurance claims or lawsuits. Iowa uses modified comparative fault standards.
Do I need insurance to register a car in Iowa?
Yes, insurance is required to register a car in Iowa. You must carry minimum liability coverage, which is verified electronically. Registration can’t be completed without active insurance — Iowa also conducts random insurance checks.
What are the top risks for driving in Iowa?
Iowa’s rural roads and agricultural traffic create unique hazards, including slow-moving farm equipment that creates dangerous passing situations. Severe winter weather with snow and ice affects driving for months, while long highway stretches contribute to driver fatigue and impaired driving incidents.
How long do I have to report an accident in Iowa?
In Iowa, accidents involving injury, death, or property damage of $1,500 or more must be reported to police immediately. If no officer responds, you must file a written report with the Iowa DOT within 72 hours. Timely reporting helps protect your driving record and insurance claim. Insurance notice requirements may be shorter.
What are the top safety tips for driving in Iowa?
In Iowa, watch for slow farm equipment on rural roads, especially during planting and harvest time. Winter driving means slowing down and braking early on icy roads. Don’t zone out on those long highway stretches. Pay attention at rural intersections.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
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