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The Best Auto Insurance in Iowa

Keep a close eye on your auto insurance options in Iowa.

Best Auto Insurance for Drivers With a Bad Record in Iowa
Allstate Logo 2023

Traffic violations result in increased auto insurance rates no matter where you live. We found Allstate had the most affordable and flexible coverage options even after an incident.

Best Cheap Auto Insurance in Iowa
State Farm Logo

State Farm offers some of the lowest rates on auto insurance in Iowa. You can add coverages and apply discounts as needed to get what you need with help from its local agents.

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Iowa offers plenty of wide open space through which to drive — just make sure your auto insurance is there for you if the road gets a little bumpy. The state is a college sports haven and home to the Iowa Hawkeyes and the Iowa State Cyclones. No matter where you catch the game, you can also catch some pretty affordable auto insurance rates. The state’s 2.2 million drivers get some of the cheapest rates in the country, but it’s all about the mix of coverages, discounts, and customer service offerings that work best for you.

The Best Auto Insurance in Iowa

  1. 1.

    Best Auto Insurance for Drivers With a Bad Record in Iowa: Allstate

  2. 2.

    Best Cheap Auto Insurance in Iowa: State Farm

  3. 3.

    Best Auto Insurance for Military Families in Iowa: USAA

  4. 4.

    Best ATV Auto Insurance in Iowa: Nationwide

Comparison of the Best Auto Insurance in Iowa

Annual cost of full coverage auto insurance Annual cost of minimum coverage auto insurance Driver training discount Military discount Off-road vehicle coverage Review
Allstate $1,382 $550 Yes No Yes Allstate review
State Farm $886 $241 Yes No Yes State Farm review
USAA $1,352 $201 No Yes Yes USAA review
Nationwide $1,329 $472 Yes No Yes Nationwide review

Detailed List of the Best Auto Insurance in Iowa

1. Best Auto Insurance for Drivers With a Bad Record in Iowa - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

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.

ProsWho It's Best For
  • pro
    Infrequent drivers or drivers trying to stay off the road after an incident
  • pro
    Anyone looking for accident forgiveness
ConsWho It's Not Best For
  • con
    People looking for the lowest auto insurance rates
  • con
    Drivers with an electric/hybrid vehicle


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


Iowa law requires minimum liability coverage of $20,000 bodily injury to or death of one person in any one accident, $40,000 bodily injury to or death of two or more persons in any one accident, and $15,000 property damage to others in any one accident.3 Insurance providers must offer uninsured/underinsured motorist coverage, but you can reject it in writing.4

2. Best Cheap Auto Insurance in Iowa - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

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.

ProsWho It's Best For
  • pro
    People who want to work with a local agent
  • pro
    Drivers looking for low car insurance rates
  • pro
    Young drivers and their parents
ConsWho It's Not Best For
  • con
    Drivers with multiple at-fault incidents on their record
  • con
    Military and federal employees

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.


If you are unable to obtain coverage in the voluntary market, look into the Iowa Automobile Insurance Plan for affordable coverage.7

3. Best Auto Insurance for Military Families in Iowa - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

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.

ProsWho It's Best For
  • pro
    Military families
  • pro
    Teen drivers on their parents’ insurance or transitioning to an independent plan
  • pro
    Safe drivers
ConsWho It's Not Best For
  • con
    Non-USAA members
  • con
    Non-military members or families

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
4. Best ATV Auto Insurance in Iowa - Nationwide

What We Like Most:

  • Discounts for taking a defensive driver course
  • Network of local agents
  • Usage-based insurance program for low-mileage drivers

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.

ProsWho It's Best For
  • pro
    Drivers looking for less common coverages
  • pro
    People who recently purchased a new ATV
  • pro
    People who want to work with a local agent
ConsWho It's Not Best For
  • con
    People with a bad driving record
  • con
    Drivers with a car insurance policy with another provider

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.


We chose the best auto insurance providers for Iowans using a three-step research process:

  • Company information: We analyze data about each company, including its coverage options, discounts, customer satisfaction ratings, and financial strength ratings. The last two result from research into third-party companies like AM Best, the Better Business Bureau, J.D. Power, Moody’s, the National Association of Insurance Commissioners, and Standard & Poor’s.
  • Proprietary data: We analyze data points surrounding transactions, such as when someone signs up for a policy. This internal data allows us to weed out auto insurance providers that might not be appropriate for a given location or demographic.
  • Institutional knowledge: We take a holistic approach to analysis, focusing on data but incorporating institutional knowledge from our exceptional team, led by Paul Ford. Paul is the president of insurance at Centerfield,’s parent company. He has nearly three decades of working experience in the insurance industry, with tenures at Canadian Access, Inslogic, Capital One Insurance Services, NetQuote, Bankrate, and Datalot. We leverage Paul’s extensive knowledge of car insurance to help customers find their perfect policies.

Iowa Auto Insurance FAQ

Which company offers the cheapest auto insurance in Iowa?

USAA offers the cheapest auto insurance in Iowa. Its minimum coverage plan averages about $201 annually.

What are the cheapest auto insurance companies for full coverage in Iowa?

State Farm has by far the lowest annual full-coverage auto insurance rate in Iowa at $886.

How much is car insurance in Iowa per month?

Car insurance in Iowa costs an average of $59 per month.


  1. Speeding Convictions by County of Occurrence 2013-2022. Iowa Department of Transportation. (2023).

  2. State & Urbanized Area Statistics. U.S. Department of Transportation Federal Highway Administration. (2024).

  3. Auto Insurance. Iowa Insurance Division. (2024).

  4. Chapter 516A Uninsured, Underinsured, or Hit-and-Run Motorists. Iowa Legislature. (2024).

  5. Cost of Living Data Series. Missouri Economic Research and Information Center. (2024).

  6. Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds. J.D. Power. (2023, Jun 13).

  7. Iowa Automobile Insurance Plan. AiPSA. (2024).

  8. Iowa. Military State Policy Source. (2024).

  9. Census 2020: Urban and Rural Population in Iowa’s Counties, 1940-2020. Iowa State University Extension and Outreach Indicators Program. (2024).

  10. Off-Highway Vehicle Reference Guide. Iowa Department of Natural Resources. (2024).