Best Cheap Auto Insurance in Iowa 2022 – Forbes Advisor

0

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Finding Cheap Car Insurance in Iowa

Looking for cheaper auto insurance premiums in Hawkeye State? Look no further. We’ve evaluated 12 major auto insurance companies to find the best rates for a variety of driver types.

Related: The best car insurance companies

Cheap Iowa car insurance for good drivers

Good drivers pay less for auto insurance than other Iowa motorists. Drivers with no recent claims or accidents cost insurers less, so companies charge less for coverage. If you have a good driving record, use that to your advantage and shop around for a policy.

State Farm and Pekin Insurance have the best rates for good drivers in Iowa, among companies rated by Forbes Advisor.

Related: Cheap car insurance for 2022

Cheap car insurance in Iowa for drivers with a speeding ticket

Forbes Advisor’s analysis of 12 insurance companies in Iowa found that one speeding ticket raises auto insurance rates by more than $200 on average in the state.

However, State Farm, which gives the best rates to drivers with speeding tickets, raises rates by only 7%, on average. Beijing Insurance is another insurer with well below average car insurance premiums for drivers with a recent speeding ticket.

Cheap Iowa car insurance for drivers who have caused an injury accident

Auto insurance premiums increase by an average of 47% in Iowa after a car crash with an injury. That’s an increase of nearly $600 on your rates. However, you can find better auto insurance rates if you shop around and get quotes from multiple insurers.

A good place to start is State Farm and Pekin Insurance, which have the lowest auto insurance rates for drivers who have recently been involved in an injury crash in Iowa, among the companies reviewed.

Cheap Iowa Car Insurance for Drivers with a DUI

A DUI conviction raises average auto insurance rates by more than $800 in Iowa. Auto insurers view drivers with a DUI as riskier. Hence, the higher rates.

State Farm only increases its rates by an average of 7% following a DUI. Travelers and Progressive are also options that charge drivers with DUIs lower premiums than the state average.

Cheap Iowa car insurance for drivers with bad credit

A person’s credit history is a factor insurers use to set rates. Insurance companies think drivers with bad credit are more likely to file claims, so insurers charge them more for coverage. Iowa drivers with poor credit pay more on average for car insurance than those with a drunk driving conviction, accident or speeding ticket.

IMT Insurance, Geico, and Travelers have the cheapest auto insurance for drivers with poor credit in Iowa. Consider getting quotes from these insurers if you have a bad credit history and want to find the cheapest policy.

Cheap Iowa car insurance for adding a teen driver

Parents who add a teenager to their car insurance policy can expect to pay significantly more for coverage. The average rate for parents more than doubles when they add a teenager in Iowa.

However, there are insurers with much lower rate increases, including Nationwide, IMT Insurance and West Bend Mutual. Adding a teenager to your policy is a good time to shop around for a policy to ensure you get the best rate.

Related: Best Cheap Car Insurance for Teenagers

Cheap Iowa car insurance for young drivers 18-25

Young drivers generally pay more for car insurance than their parents. Car insurance companies consider young drivers a greater risk because they have limited driving experience.

Pekin Insurance, Travelers, IMT Insurance, and Geico all have lower than average car insurance costs for young drivers in Iowa. If you’re attending school, ask about student car insurance discounts to help offset your costs.

Cheap Car Insurance in Iowa for Drivers Age 65 and Older

Older drivers may see their auto insurance costs increase as they get older. Insurance companies think older drivers are riskier than middle-aged motorists, so they charge higher rates.

Pekin Insurance, State Farm, Travelers, and Geico all offer average senior driver auto insurance rates below the state average for senior motorists in Iowa. And just because insurance companies think you’re a high-risk driver doesn’t mean you are. You can prove them wrong if you’re willing to have your driving monitored, which can earn you a usage-based auto insurance discount if you show you’re a safe driver.

Related: Best car insurance for seniors

Cheapest Vehicles for Insurance in Iowa

With the right vehicle, you can potentially save money on car insurance. In Iowa, the Jeep Wrangler JL Sport, Honda CR-V LX and Jeep Compass Latitude are among the cheapest vehicles for insurance, based on average rates for the top 50 selling 2021 models. The 20 cheapest are below.

The most expensive cars for insurance in Iowa among popular models are the Lexus ES 300H ($2,001 per year) and the Tesla Model S Performance/Plaid ($3,565 per year).

Related: The most and least expensive cars to insure nationwide

Minimum Auto Insurance Required in Iowa

Iowa only requires automobile liability insurance. Liability insurance is essential coverage because it compensates others for the damages and injuries you cause. It also covers your legal defense if you are sued for a car accident.

Car owners in Iowa must carry liability insurance with at least:

  • $20,000 for bodily injury to a person.
  • $40,000 for bodily injury to several people in an accident.
  • $15,000 for property damage in an accident.

Your best strategy for getting liability insurance is to protect your net worth. If you have savings and other assets that you could lose in a lawsuit, you want high liability limits so your auto insurance pays for the lawsuit settlements, not you.

What else should I have?

Uninsured motorist coverage. In Iowa, you must decline uninsured motorist coverage (UM coverage) in writing or it will be included in your policy. It covers your injuries and those of your passengers if you are hit by a driver who does not have car insurance.

Likewise, Underinsured Motorist (UIM) coverage pays for your injuries if you are hit by someone with but not enough insurance.

Collision and comprehensive insurance. These types of insurance pay for repairs to your own car or reimburse you for the value of the vehicle if it is stolen or totaled. They pay when damage is caused by issues such as hail, vandalism, fires, floods, riots, falling objects, and collisions with animals like deer.

Collision and comprehensive coverage are usually sold together. If you have a car loan or lease, it’s probably required by your lender or leasing company.

Coverage of medical payments (MedPay). This coverage will pay medical expenses for you and your passengers, regardless of who was at fault in a car accident. If you have good health insurance, you might not want MedPay coverage, but it can also cover your health plan’s deductibles, copayments, and coinsurance.

Summary: Auto Insurance Required in Iowa

Can I show my insurance ID card from my phone?

In Iowa, you can show a car insurance ID from your phone. Check with your auto insurance company to see if they offer a mobile app that includes access to electronic insurance ID cards.

Factors Allowed in Iowa Auto Insurance Rates

Car insurance companies typically use driving records, past claims, vehicle model and more when setting rates. In Iowa, companies can also use these factors.

How many uninsured drivers are there in Iowa?

About 11% of Iowa drivers don’t have car insurance, according to the Insurance Research Council.

If an uninsured driver hits you, you can try to sue them. Or you can use your own uninsured motorist coverage for injuries and your collision coverage for vehicle damage.

Penalties for driving without car insurance

If you are caught driving without insurance in Iowa, you could be fined up to $250.

When can a vehicle be totaled?

A vehicle can be totaled in Iowa when the damage exceeds 50% of the value of the vehicle at the time of the accident.

Troubleshoot insurance issues

The Iowa Division of Insurance is responsible for monitoring insurance companies and receiving consumer complaints. The division has an online complaint form.

Methodology

To find the cheapest auto insurance companies in Iowa, we used rates from Quadrant Information Services, an insurance data and analytics provider. Rates are based on a female driver with a clean record insuring a Toyota RAV4 with $100,000 per person liability coverage, $300,000 per accident and $100,000 property damage liability coverage, uninsured motorist coverage and any other coverage required in the state. The rate also includes collision and all perils with a deductible of $500.

The companies we reviewed in Iowa were Allstate, Auto-Owners, Farm Bureau Mutual, Geico, Grinnell, IMT, Pekin Insurance, Progressive, State Farm, Travelers, USAA, and West Bend.

Share.

Comments are closed.