Compare Cheap Auto Insurance in Iowa

Pekin provides the cheapest full coverage auto insurance in Iowa at an average yearly cost of $1,298. USAA follows at $1,373 annually on average, but it’s only available to military personnel and their families. Progressive and State Farm also offer competitive rates at $1,522 and $1,576 per year on average, respectively.

Pekin also offers the most affordable minimum coverage in Iowa at only $207 per year on average. Progressive offers the next cheapest at $239, and for military-affiliated drivers, USAA follows at $247 annually on average. All fall well below the state and national averages.

Pekin is a fairly clear winner in terms of the cheapest option for households insuring teen drivers in Iowa, with average yearly premiums of around $2,854 — beating out the next cheapest option, IMT, by 13 percent. GEICO and Progressive also offer competitive rates.

For Iowan drivers with a speeding ticket, Pekin once again has the lowest average annual premium, coming in at around $1,443. Travelers ($1,558) and State Farm ($1,613) also offer competitive rates.

Pekin has the lowest premiums for drivers with an at-fault accident on their record, with an average annual cost of $1,531. State Farm and Travelers follow with average annual rates of $1,586 and $1,661 per year. USAA also provides below-average rates for military-affiliated drivers who have been found at fault in an accident.

In Iowa, as in any other state, a DUI has a substantial effect on insurance premiums. However, in comparison with the national average cost, it can be quite a lot cheaper for Iowans in this situation. Progressive comes in with the lowest average annual premium at $1,746, but both Travelers and State Farm also have average annual premiums well below the state average of $3,040.

Drivers in Iowa with bad credit can experience much higher premiums, even surpassing the effect of having a DUI on record. For drivers in this situation, Travelers and IMT offer the lowest average annual premiums at $1,850 and $2,433, respectively. Progressive and GEICO charge slightly more, at around $2,452 and $2,525 annually, though their rates are still well below the state average.

State Farm offers below-average rates in Iowa and also beats out most other major insurers in terms of customer service. USAA technically ranks the highest but is only available to military drivers. It’s also worth noting that several regional insurers, such as Pekin and IMT, are not ranked by J.D. Power, but have high scores from the CRASH Network Report Card.

1. Avoid traffic violations: Maintaining a clean driving record can save drivers a significant amount on their auto insurance. Having a DUI or speeding ticket on your record can raise premiums by quite a bit, and the effect will last for several years.
2. Bundle policies: Most auto insurance providers also offer other types of insurance, such as homeowners and renters, and if you’re in the market for one of those anyway, getting multiple insurance policies from the same company could get you an overall discount.
3. Pay in full: If you have the cash up front, many insurers offer a discount to customers when they pay for their policies upfront. You can still cancel at any time and receive a prorated refund, though some companies may charge a small cancellation fee, so keep this in mind.
4. Take advantage of young driver discounts: Teenagers are often subject to significantly higher premiums than more experienced drivers, but many insurers offer young driver discounts for meeting various criteria, like being insured consistently for at least one year, maintaining a good GPA, or completing extra driver’s education.

The state of Iowa sets minimums for insurance limits that all drivers must carry. Iowa is one of several states that allows some drivers to self-insure, for example by holding state bonds that can be used in lieu of ordinary insurance. For most drivers, however, it’s required that they have proof of insurance that meets the following minimums:

• Bodily injury liability: $20,000 per person/$40,000 per accident
• Property damage liability: $15,000 per accident

Many drivers choose to pay higher insurance premiums to increase their coverage, which we highly recommend. Higher coverage means greater financial protection in an accident. In addition, for drivers who lease or finance their cars, the lender will likely require full coverage.

Iowan auto insurance rates vary by city. In Iowa, the spread is relatively small, perhaps in part because there aren’t such big metropolitan areas with more frequent damage claims. Ankeny is the cheapest at $1,673 annually on average, while Sioux City is the most expensive at $2,022.

We analyzed average auto insurance premiums in Iowa for full and minimum coverage for drivers with clean records and good credit. We also analyzed average premiums for other driver profiles, including those with DUIs, accidents, speeding tickets, low credit, and households with teen drivers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $100,000 per accident
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible