The Best Auto Insurance in Iowa

State Farm is the largest car insurance company in the nation. Its financial stability and size allow it to offer some of the lowest average rates in Iowa. You can add more robust coverage, including roadside assistance, rideshare coverage, and car rental reimbursement, but you’ll generally find an affordable rate for full coverage auto insurance. Plus, State Farm is highly rated in terms of customer satisfaction.

Affordable Rates in Iowa

Iowa’s cost of living ranks eighth most affordable in the nation, according to the Missouri Economic Research and Information Center.² That affordability translates to auto insurance rates, but they can still get pricey. State Farm has the cheapest full coverage insurance rates on our list after USAA, but it’s the third-cheapest for a minimum coverage policy (excluding USAA).

Discounts for Teen Drivers

Teen drivers are one of the most expensive age groups to insure due to their inexperience. Luckily, State Farm offers many discounts and incentives geared specifically toward young drivers. These include:

• Drive Safe & Save: Save up to 30 percent on your premium at each policy renewal by tracking your driving habits on your smartphone.
• Steer Clear driver program: Drivers under age 25 who have no at-fault accidents or moving violations and complete certification in the Steer Clear program receive a discount of up to 15 percent.
• Good student discount: State Farm’s student discount of up to 25 percent may apply if you are under 25 and rank in the upper 20 percent of your class.
• Student-away-at-school discount: If you are a college student under age 25 and store your car at home while you’re at school over 100 miles away, your policy may be eligible for this discount.
• Defensive driving course discount: Completing an approved driver safety course can get you a discount on your premium at any age.

Customer Service

State Farm doesn’t sacrifice customer service in favor of its low auto insurance rates. The company ranked fifth in the region in overall customer satisfaction, according to J.D. Power’s 2024 survey. This may be in part due to its reliance on local exclusive agents, who know the products and the city or town they serve.

USAA is an extremely popular provider due to its low rates and high customer satisfaction ratings; however, you are eligible only if you or certain family members (parent or spouse) serves or served in the Armed Forces. Iowa is home to tens of thousands of active-duty service members, spouses, and children, as well as National Guard and reserve members, spouses, and children — not to mention veterans and their families.⁴ Military families are best served through USAA, which offers discounts for teen drivers and perks for members.

Family Discounts

Former dependents save up to 10 percent on their policy if their parents have a USAA insurance policy. Children must establish eligibility through a USAA group sponsor’s policy, be 25 years old or younger, and have no major violations within the last three years. You can also receive a good student discount if your teen is a full-time student with at least a B average (3.0 GPA).

Military Storage Discounts

USAA offers robust vehicle storage discounts to allow for flexibility if you’re working on a military base or traveling for an assignment:

• If you’re out of state on military duty, you can store your car and earn up to 60 percent off your premium
• If you visit home often and need your vehicle on occasion, you can utilize USAA’s pay-per-mile coverage
• USAA offers a 15 percent discount on your comprehensive coverage when you garage your vehicle on a military installation, such as Camp Dodge near Johnston, Iowa.

Perks for Military Families

USAA offers a lot of perks alongside affordable rates and auto insurance discounts. Some of the most notable include:

• 24/7 membership support for insurance, deployment questions, and transitions to life abroad or back home
• Multiple-vehicle bundling
• Advice on banking, loans, investing, debt management, saving, and retirement
• ADT home security discount
• Discounts on travel, hotels, and cruises

While Iowa only requires liability coverage in order to legally drive in the state, it’s usually a good idea to add more coverages to your policy for robust financial protection. Progressive offers a wide range of optional coverages to help you customize your policy. In addition, Progressive has competitive rates for drivers with DUIs, and its usage-based auto insurance program benefits anyone who wants to keep their insurance costs down. The company also offers many different ways to save, regardless of your driving record.

Add-on Coverages

Progressive offers many optional coverages that you can add to your policy for more robust coverage if you decide not to stick only to liability coverage. These include accident forgiveness, which ensures that your rates won’t increase after an accident, regardless of fault. There is no waiting period for accident forgiveness from Progressive; it begins the day you sign up, as long as you add it to your policy.

Progressive also offers two other types of accident forgiveness, which are automatically added to your policy at no extra cost. The first is small accident forgiveness — with this perk, Progressive won’t increase your rates after your first claim that’s less than or equal to $500. If you’ve been with Progressive for at least five years without an accident or violation, you’ll be eligible for large accident forgiveness, which prevents your rates from increasing after a claim, even if it’s over $500. 

In addition to accident forgiveness, Progressive offers the following optional coverages: 

• Collision coverage
• Comprehensive coverage
• Medical payments coverage
• Personal injury protection
• Uninsured/underinsured motor vehicle coverage
• Rental car reimbursement
• Loan/lease payoff
• Roadside assistance
• Trip interruption coverage
• Vehicle protection
• Custom parts and equipment value (CPE) coverage
• Rideshare coverage
• Disappearing deductible 
• Pet injury coverage

Savings for Drivers With DUIs

Progressive is known to generally have good rates for drivers with DUIs, which is the case in Iowa. Although it doesn’t have the absolute cheapest rates in this category, it comes in third after State Farm and Travelers, and its rates are still 38 percent cheaper than the statewide average for drivers with a DUI. 

In addition to its already affordable rates, Progressive offers many discounts that apply regardless of your driving record. Check to see if you’re eligible for the following:

• Multi-policy 
• Continuous insurance
• Teen driver 
• Good student 
• Distant student 
• Homeowner 
• Multi-car 
• Online quote
• Paperless
• Pay in full
• Autopay

Snapshot

Progressive offers all insurance customers the option to enroll in Snapshot, which earns you discounts for safe driving, even if you’ve committed a driving violation in the past. To enroll, you’ll need to download the Progressive app. Progressive doesn’t advertise percentage discounts for Snapshot, but it states that safe drivers save an average of $169 when they sign up and an average of $231 at their next policy renewal. 

Snapshot savings are calculated based on the following: 

• Acceleration and braking: Avoid accelerating too quickly and slamming the brakes.
• Mileage: The less you drive, the more you save.
• Late-night driving: Higher discounts are offered to those who make fewer late-night trips between 12-4 a.m. on weekends.
• Distracted driving: Stay off your phone while driving to get a bigger discount.

Iowa’s scenic landscapes and rural communities make it especially advantageous for off-roading. Nearly 40 percent of Iowa’s population lives in rural areas, where you can travel on roadways in an ATV provided you have insurance.⁷ Nationwide offers coverage options, discounts, and perks to bolster your ATV insurance — especially if you just bought a new one.

ATV Coverage and Discounts

In Iowa, you must have proof of insurance to drive an off-road vehicle on a roadway. You must also keep the speed below 35 mph, be at least 18 years of age, carry your valid driver’s license, and operate headlights at all times. The average cost of ATV insurance is less than that of auto insurance, and Nationwide also offers numerous discounts you can apply to your ATV policy.

These include:

• Multi-policy discount if you also have auto, home, or life insurance with Nationwide
• Multi-vehicle discount for motorcycles, snowmobiles, scooters, and other UTVs
• ATV safety course discount
• Theft-recovery device discount if you have a professionally installed radio or GPS theft-recovery system
• Paid-in-full
• Homeowner
• Riding association

Per-Per-Mile Coverage

In addition to its standard auto insurance policies, Nationwide has a pay-per-mile program called SmartMiles. This may be a great option if you’re looking to insure a car and drive less than average. Pay-per-mile rates are broken down into two components: a base rate and a per-mile rate. So, for example, let’s say your base rate is $60 per month, and your per-mile rate is $0.07 per mile. If you drive 500 miles in a given month, you’ll pay $95 for that month ($60 + $0.07 x 500).

In order to take advantage of SmartMiles, you’ll need to install a small device in your vehicle (unless you have an eligible connected car) so that Nationwide can track your mileage. You’ll also get a discount of up to 10 percent at your first renewal if you drive safely, and only the first 250 miles count on a single day, so you don’t have to worry about a huge overage on long road trips.

Original Equipment Manufacturer (OEM) Coverage

OEM replacement benefits are important for ATV owners because some aftermarket parts, or parts not made by the original manufacturer, will not fit your new vehicle if it’s damaged. Nationwide offers a long-term OEM perk that guarantees your ATV repairs will include new parts from your original manufacturer.

If it isn’t available, Nationwide issues you a payment based on the fair market value of the new OEM part. Unlike most providers, which offer OEM perks for one- or two-year-old ATVs, Nationwide will replace OEM parts on vehicles up to 10 years old.

Nowadays, many people opt to manage their auto insurance policies online, but managing policies and claims handling through a screen is not for everyone. Auto-Owners offers customers the option to work with in-person, local agents who are able to provide more personalized knowledge. Auto-Owners has been awarded the highest ratings of any insurer on this list by J.D. Power and the CRASH Network Insurer Report Card.

Local Agents

Auto-Owners has over 48,000 agents across 26 states, including Iowa. Its website lists 20 agents in Des Moines alone. Working with a local agent can provide many benefits — for example, they will have more localized knowledge and can provide guidance specific to you. Independent agents typically offer many different types of insurance in addition to auto insurance, which can be useful if you are considering bundling your auto insurance with other policies. 

Auto-Owners’ impressively high rating from J.D. Power suggests that its customers appreciate this agent-centric customer service model. It has also received a high rating and honorable mention from the CRASH Insurer Report Card. These ratings are based on how easily and efficiently a company handles its claims, as well as the chances that it will quickly honor the claim without challenging it. 

Types of Coverage 

Auto-Owners offers several different types of coverage, including: 

• Collision: Pays the cost of replacing or repairing a vehicle if you’re involved in an accident 
• Comprehensive: Pays for the cost of replacing or repairing a vehicle if damage occurs due to fire, vandalism, theft, animal, or weather. 
• Uninsured/Underinsured Motorist: Protects you financially in the event of injury, damage, or death caused by someone who does not have sufficient liability coverage
• Medical Payments and Personal Injury Protection: Covers hospitalization, rehabilitation, and other medical expenses incurred by either driver or passenger
• Road Trouble Service: Provides 24-hour service to customers who run out of gas, lock their keys in the car, or are stranded on the road due to a mechanical malfunction. 
• Additional Expense: Helps cover the cost of a rental car, and other food or lodging expenses incurred if you can’t use your vehicle due to an accident
• Diminished Value: Helps protect your investment if your car depreciates in value following repairs due to an accident.