How to Find the Most Affordable Car Insurance in Iowa

Fran
Lucy Lazarony
July 7, 2020

The folks in Iowa pay just around $1,015 on average for car insurance per year, which is almost 29 percent less than the national average. That’s quite a deal and one that can be made even sweeter with some smart insurance shopping tips. Before we discuss tips and strategies for saving money on car insurance, let’s take a closer look at car insurance in Iowa.

Minimum Liability Requirements

If you ever cause a car crash, liability insurance pays for the other people’s injuries and property damage, up to your liability limit. Every state has minimum liability requirements for the drivers in their states.

In Iowa, the minimum liability requirement is $20,000 bodily injury liability coverage per person, $40,000 bodily injury liability coverage per accident and $15,000 property damage liability coverage per accident.

In Iowa, paying the state’s minimum liability requirements would cost on average about $332 per year.

A Full Policy Costs More

Choosing a more comprehensive policy in Iowa with minimum liability requirements plus collision coverage and comprehensive coverage with $1,000 deductibles would cost $857 per year.

Collision insurance is coverage that helps to repair or replace your car if it is damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events that aren’t covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.

If there is a loan on your car, your lender may require you to carry both collision and comprehensive coverages.

A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Both collision and comprehensive insurance coverages require deductibles. Choosing a high deductible is one way to lower an auto insurance premium.

Iowa Is an At-fault State

When it comes to insurance, Iowa is an at-fault state. This means drivers are responsible for any damage they cause to another vehicle. Who is at fault in an accident is determined by an insurance adjuster. Under Iowa’s third party liability rule, drivers who are in an accident caused by another driver can file claims against the other driver’s insurance company.

Cheapest and Most Expensive Cities

In Iowa, the cheapest city for car insurance is in Ankeny and the most expensive city for car insurance is Council Bluffs.

Ankeny is a suburb of Des Moines. Council Bluffs is located in southwest Iowa on the east bank of the Missouri River.

How to Save Money on Car Insurance

Looking for ways to save money on car insurance? You’ve come to the right place. Here is a roundup of tips and strategies you can use to lower your auto insurance premium. Use as many as you can to save money.

Be a safe driver. Being a safe driver and following the rules of the road will save you money on car insurance. But if you have a DUI or at-fault accident or a speeding ticket, your auto insurance premium will go up. In Iowa, car insurance premiums increase by 41 percent after a DUI, 35 percent after an at-fault accident and 15 percent after a speeding ticket. What does that mean for dollars in your pocket? In Iowa, a first, minor, at-fault crash will lead to an extra $566.05 each year in auto premiums. And a DUI could raise your auto insurance rates by $722.20. So drive safely in Iowa and be a good driver and you’ll save money on your car insurance. If you’ve been a good driver be sure to ask for a good driver discount. You’ve earned it.

Have good credit. If you have good and excellent credit, you will get a good deal on your auto insurance premium. But if you have no credit or bad credit you will pay much more on your car insurance. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. Depending on your credit there is a big range of rates that you will pay for your auto insurance. In Iowa, a driver with excellent credit saves on average about $803.50 each year in car insurance premiums compared with a driver with a bad credit rating. If you have bad credit there are things you can do to improve it. Getting current on any past due accounts and paying down debt will help life your credit score.

Get married. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less than singles for car insurance. In Iowa, married drivers save $63 per year in car insurance premiums.

Bundle your policies. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money.

Insure more than one car. Insure more than one car with the same insurance company. Doing so will save you money on your premiums.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Have anti-theft and safety features. Having certain anti-theft on your car will lower your auto insurance. So check with your auto insurance company about the anti-theft and safety features on your car to see if you’re eligible for a discount.

Check memberships. Members of particular professional organizations and affiliates get discounts on car insurance. So check with your auto insurance company about your memberships to see if you are due a discount.

Insure less on older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer.

Choose a high deductible. As mentioned earlier, choosing a high deductible will lower your auto premium. Just make sure to put the deductible amount in a small emergency fund. That way the money will be there if you should need to make a claim.

Maintain insurance coverage. You’ll pay more for auto insurance if you don’t maintain continuous coverage. So stick with your auto insurance and save money.

Be older than 25 and younger than 65. Older and younger drivers have more serious accidents and pay more for their auto insurance. Drivers of the in-between ages pay less for auto insurance.

Be a woman. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Be a low-mileage driver. Heavy commuters who rack up the miles on their cars will pay more for their auto insurance. Low-mileage drivers pay less. So drive less and pay less for auto insurance.

Choose a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft, you will pay more for car insurance. If you live in a neighborhood with few accidents and low crime, you will pay less for car insurance. So choose a safe neighborhood and save money on car insurance.

Buy a house. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your own home and enjoy the savings on your auto insurance premium.

Shop around. The best way to save money on car insurance is to shop around. And you will want to check quotes with several insurance companies. SmartFinancial makes it easy to do.

Just enter your zip code below to get started. Answer a few, quick questions and you’ll be comparing auto insurance rates in Iowa in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want. So shop smart for insurance and drive safely in Iowa.

Get a Free Auto Insurance Quote Online Now.

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