The Best Auto Insurance in Iowa

Not every driver in Iowa has a spotless record. Iowa recorded 114,178 speeding violations in 2022 alone.¹ Car insurance companies view drivers with a bad record as high risk because they are more likely to file a claim or get into an accident, hence increasing auto insurance rates after traffic violations. Allstate’s usage-based auto insurance program benefits drivers with a bad record who want to keep their insurance costs down. The company also offers many different ways to save regardless of your driving record.

Milewise

Allstate has two usage-based auto insurance programs. Our recommended option for drivers with a bad record, which we define as a driving history with multiple accidents, moving violations, traffic tickets, or other offenses that added points to your record, is Milewise. This pay-per-mile program incentivizes you to drive less, which generally means you’re less likely to get into an accident or file a claim. According to the U.S. Department of Transportation’s Federal Highway Administration, Iowans drive an average of 15,074 miles per year.² If you drive less than 7,500 miles a year, you can save on car insurance through Milewise. The program offers a daily flat rate plus a rate per mile.

Accident Forgiveness

After a traffic incident, the last thing you want is for your rates to increase yet again. Add Allstate’s accident forgiveness coverage so your rates don’t go up after an accident (regardless of fault). There is no waiting period for accident forgiveness from Allstate; it begins the day you sign up.

Discounts for Drivers With a Bad Record

Many of Allstate’s discounts apply regardless of your driving record. Check to see if you’re eligible for the following:

• Multi-policy discount
• New-car discount
• Smart student discount
• Safe-driving bonus
• FullPay discount
• Vehicle anti-theft equipment discount
• Paperless and automatic billing discounts
• Early-signing bonus
• Deductible rewards

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 rates highly in 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.⁵ That affordability translates to auto insurance rates, but they can still get pricey. State Farm had the cheapest full coverage insurance rates on our list of top providers in Iowa by nearly $400, so if you’re looking to save money on your auto insurance premium, look no further.

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 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 seem to sacrifice customer service in favor of its low auto insurance rates. The company ranked third in the region in overall customer satisfaction, according to J.D. Power’s 2023 survey.⁶ 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 a loved one (child, grandchild, parent, or grandparent) 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.⁸ 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.

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, including 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

Iowa’s scenic landscapes and rural communities make it especially advantageous for offroading. Nearly 40 percent of Iowa’s population live in rural areas, where you can travel on roadways in an ATV provided you have insurance.⁹ 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.¹⁰ You also need to 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 annual rate for ATV insurance from Nationwide is $828, but the company 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

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.