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Iowa Car Insurance Regulations & Required Coverage

Iowa insurance laws vary from other states. They require all drivers to maintain insurance or financial responsibility and have penalties in place for those that do not. Following Iowa's insurance regulations are not difficult, but you should be aware of what the requirements are.

After an accident, someone will be held responsible for causing the accident. This follows the laws under a tort system, which Iowa follows. The person who is found at fault is also held responsible for paying monetary damages related to the accident.

Required Coverage

All personal vehicles in Iowa require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage
Minimum Iowa Car Insurance Requirements
Bodily Injury Liability $20,000 / $40,000 Limit
Property Damage Liability $15,000 Limit

Additional insurance coverage can include:

  • Comprehensive and Collision Coverage
  • Uninsured / Underinsured Motorist

Comprehensive insurance pays for any non-collision incidents such as a flood or tornado. It also covers having your vehicle stolen so could be quite important to add to your policy if your vehicle is listed as on of the most stolen vehicles in Iowa. Collision insurance will pay for repairs or replacement of your vehicle if it has been damaged in an accident. Each of these coverages comes with a deductible that must first be payed before receiving compensation.

Uninsured or underinsured motorist insurance will cover you in the event you are hit by someone who does not have insurance, has insurance but not enough to pay for the related expenses, or flees the accident (hit and run).

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy
  • Post a surety bond, cash or securities of at least $55,000

If you have been in an accident and need to prove your financial responsibility, you can:

  • Get a release from all other affected parties
  • Posting a payment payable to the Office of Driver Services
  • Obtain a decision stating that you're released from all liability
  • File an agreement to repay expenses under an installation plan
  • Execute a warrant of confession of judgment. This needs to contain an agreed upon payment schedule
  • File evidence of a settlement with all affected parties

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID Card
  • Proof of other means of financial responsibility. The Office of Driver Services will have details or you can contact the office with which you used to maintain financial responsibility.

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer
  • After an accident
  • When registering or renewing your vehicle's registration
  • Anytime you are operating a vehicle

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance, you can face the following penalties:

  • Suspension of license and/or registration
  • Related fines and/or fees
  • Requirement to maintain an SR-22 on record for 3 years

Iowa Insurance Agents

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