Basic Car Insurance Requirements in Iowa 

Iowa auto insurance law requires that all of its licensed drivers carry a liability policy on their vehicle. Liability is there to ensure that in the event you are responsible for an accident the often exorbitant medical costs incurred by the other motorists involved in the accident and property damage costs are covered.

Liability Insurance is a minimum requirement and a low cost car insurance option as long as the vehicle is not financed.

The liability Minimums are 20/40/15 (Bodily Injury and Property Damage)
20/40/15 Explained:

Twenty thousand dollars ($20,000) for bodily injury suffered by a single occupant, forty thousand dollars ($40,000) for the combined costs of the treatment of bodily injury sustained by all of the occupants of a car and fifteen thousand dollars to pay for the property damage resulting from the accident (this includes damage to the other vehicle involved)The first 20 represents $20,000, the maximum coverage for one person's injuries, $40,000 for the total coverage for all injuries sustained in one incident and last but not least $15,000 for the property damage maximum coverage amount.

Comprehensive insurance is not required by the state but may be required if the vehicle still has a lien on it. Comprehensive/collision insurance will pay for repairs to the vehicle of the insured in the event that they are responsible for an accident (liability will only cover the costs of the other driver). In the event that a vehicle is beyond repair the owner will be reimbursed the vehicle’s full blue book value.

Although it is not required it is recommended that all motorists carry uninsured/underinsured motorist insurance. This will provide for medical expenses and the repairs to the insured’s vehicle in the event that they are hit by a driver who does not carry a liability policy (not all states require this) or whose liability is insufficient.

Insurance proof is a requirement at registration and of course after an accident. The First Offense penalty is License plate removal, impoundment possible.

IA requires that all of its licensed drivers carry a liability policy on their vehicle. Liability is there to ensure that in the event you are responsible for an accident the often exorbitant medical costs incurred by the other motorists involved in the accident and property damage costs are covered.

Under IA law, you must be consider financially responsible. This requirement can be met by filing proof of at least $55,000 insurance coverage. Otherwise, you must post security of $55,000 by certified check, cashier's check, money order, or surety bond. This filing must be maintained for two years.

Both owner and driver of the vehicles involved in an accident must prove their financial responsibility. This means if you owned the car involved in an accident but were not driving it at the time, you would still have to show financial responsibility.

Proof of financial responsibility after an accident isn't needed in these cases:

  * Your car was legally stopped, standing, or parked;
  * Your vehicle was driven without your permission;
  * No damage occurred to any person or property other than yourself.

Forest City, IA Winnebago Car Insurance Rider

If you live in or near Forest City, Iowa, and within 5 miles of the Winnebago plant located there, you will be required to carry a rider on your car insurance policy. This rider covers you in the event you are in a car accident with a Winnebago.

The state of Iowa follows a Tort system. This means that someone must be found to be at fault in the event of an accident. Under a tort system of fault, the person who caused the accident and their insurance company are responsible for all the damages to both vehicles. Because Iowa uses the Tort system, you might want to purchase as much car insurance coverage that you can reasonably afford to ensure you have more than adequate protection. Not having enough coverage, or having just the bare minimum required, could require you to pay out of your own pocket for any medical expenses or damages not covered by your policy in the event you deemed to be at fault in an accident.