Average Cost of Car Insurance in Iowa 2024

The average annual cost of auto insurance in Iowa is $708, which is 32 percent less than the countrywide average of $1,047.¹ Your rate depends on many factors, including insurance history, driving history, ZIP code, and — in Iowa — age, credit score, and sex. Even the type of car you drive can impact what you pay for car insurance.

By City

In general, your auto insurance rate will be higher if you live in a major metropolitan area than in a suburb or small town. Iowa’s most populous cities by population are Des Moines (213,164), Cedar Rapids (136,929), and Davenport (101,448).² Sioux City and Ankeny are both in the top 10 cities.

By Age

Iowa’s data on teen driver insurance costs reflects the nationwide trend: Teen drivers and their parents pay far more for auto insurance than adult drivers or the parents themselves. All things equal, your auto insurance rate should level out in your 20s or 30s.

By Coverage Level

Iowa’s minimum coverage costs 60 percent less than a full coverage policy. Of course, a minimum coverage policy comes with much less protection than a full coverage policy. Weigh the costs and benefits before deciding based on price alone.

By Violation

Another instance in which Iowa reflects the national trend is that violations will increase your auto insurance rates. Depending on the severity and number of your incidents, you could see a drastic increase (almost 50 percent).

More than 11 percent of drivers in Iowa are uninsured.⁴ Failure to provide proof of insurance could result in community service, fines, revocation of your driving privileges, and other penalties. Don’t let this happen to you when Iowa has some of the cheapest car insurance rates in the U.S. Check out our list of cheapest car insurance companies in Iowa for your demographic.

Iowa has affordable car insurance rates, but it always pays to be thorough in your search for the perfect policy provider. Here are some ways you can ensure you get the best rate and coverage options:

1. Ask about discounts. Most auto insurance providers offer discounts. These can range from discounts for getting good grades to having a new car. An insurance agent will help you check what discounts you qualify for.
2. Bundle your policies. Bundling coverages — for example, home and auto insurance — will often lower your overall premium with most major insurers.
3. Increase your deductible. Raising your deductible will lower your premium; however, you should raise your deductible only to an amount you can afford to pay out of pocket in the event of an accident.
4. Lower your limits. Decreasing your coverage limits also lowers your premium; again, make sure you understand the risks of exceeding your limits.

Iowa law stipulates every driver carry minimum liability coverage of:

• $20,000 of bodily injury to or death of one person in any one accident
• $40,000 of bodily injury to or death of two or more persons in any one accident
• $15,000 property damage liability of others in any one accident⁵

Iowa is an at-fault state. Its laws require a comparison of the actions of the parties involved. If someone hits you while you are waiting at a red light, they are likely 100 percent at fault. On the other hand, if a driver pulls out in front of you and you are looking at your phone, then you might share the fault. The percentage of fault reduces your compensation by the same number.⁶ If you are 50 percent or more at fault, you won’t receive any payout from the other party for damages or injuries.

If your license is suspended after failure to provide proof of auto insurance or being convicted of a serious violation, you must provide proof of financial responsibility in the form of an SR-22. An SR-22 confirms you have the minimum required amount of auto insurance coverage. In Iowa, this proof is required for two years starting on the date of your last suspension or revocation.⁷

Iowa is a reasonably affordable state to purchase auto insurance, but it does vary. Insurance providers can take your age, sex, and credit score into account, as well as other demographic factors, when providing you with a quote. Make sure you get multiple quotes and ask providers about discounts and other ways to reduce the burden of your insurance premium if your primary consideration is cost.

We utilize a proprietary database of auto insurance transaction information and research on Iowa’s minimum coverage requirements, fault laws, and demographics to give you an overview of what you can expect to pay for car insurance.