Insurance Iowa: A Guide to Auto & Home Coverage
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Iowa has some of the lowest auto insurance rates in the country, almost 30% lower than the national average. However, due to extreme weather conditions, Iowa residents face one of the highest year-to-date insurance premium increases. This guide gives an overview of home and auto insurance in Iowa and how to find the best rates.
Understanding Iowa's Insurance Landscape
Iowa law requires that drivers have a minimum amount of car insurance. Car insurance in Iowa has two basic coverages: liability and property damage.
Liability insurance helps pay for injuries or damages to others if you cause an accident. Property damage liability insurance pays for the damage you cause to someone else's property or car.
Mandatory Auto Insurance: What You Need To Know
Iowa drivers must have at least the following minimum car insurance coverage limits:
- Bodily injury liability: $20,000 for the death or injury of one person in an accident and $40,000 for the death or injury of two or more people in an accident
- Property damage liability: $15,000 for the injury or destruction of another person's property in an accident
The minimum requirement, however, may not be enough coverage in the event of a major accident. Look at increasing your coverage limits or adding coverage options depending on your budget and personal situation.
Review the insurance requirements of your state:
Home Insurance in Iowa: Protecting Against Natural Disasters
Home insurance is not legally required in Iowa. However, most mortgage lenders will require it. Even if it's not required, home insurance protects one of the biggest investments you will make in your life: your home.
Iowa experiences a wide range of natural disasters, including floods, tornadoes, snowstorms, and severe thunderstorms. From 1990 to 2024, Iowa experienced 51 federally declared disasters. Most standard home insurance covers damage caused by:
- Fires
- Windstorms
- Hail
- Tornados
However, standard policies do not include flood and earthquake coverage and must be purchased separately. Since 1980, flood disasters have caused $20 to $50 billion in damages to Iowa homes. Given Iowa's flood history, you should consider getting flood insurance. If your home is in a high-risk flood area, your mortgage company may require it.
Understanding What Homeowners' Insurance Covers
Standard homeowners' insurance in Iowa covers damage caused by fire, theft, and certain weather-related incidents. Here is what's protected:
- Dwelling coverage: Protects the physical structure of your home
- Personal property coverage: Covers your belongings, like furniture, electronics, and clothing
- Other structures coverage: Covers the structures other than your home, like a shed or fence
- Personal liability coverage: Provides financial protection if someone gets injured on your property
- Medical payments coverage: Covers the medical costs of people who get hurt on your property
- Additional living expenses or loss of use: Covers costs like hotel stays if your home becomes uninhabitable due to covered damage
Take some time to review your policy. Make sure it covers what you want protected and consider whether you should increase your coverage. Your insurance agent or company might have different options for you.
How To Compare and Choose the Right Insurance Policies
Choosing the right auto or home insurance policy involves more than just considering the premiums. You want to find the policy that gives you the biggest bang for your buck. Here are some helpful tips to follow:
- Get quotes from multiple insurance companies. Comparison shopping can help you find the best rates. Use comparison tools like EverQuote to quickly and easily find customized insurance quotes.
- Compare quotes: Once you have these quotes, review them side by side to ensure you compare similar benefit coverages and policy limits. While finding a reasonable price for your insurance is important, it shouldn't be the only factor. Consider the features of the policy, policy obligations, customer service, financial strength, and more.
- Check for discounts: Some companies offer more discounts than others, so be sure to look for all your insurer's discounts.
Finding Affordable Insurance in Iowa
Here are some tips for finding affordable auto and home insurance in Iowa:
- Bundle your policies to save on premiums.
- Shop and compare policies annually to ensure you're getting the best deal.
- Increase deductibles to lower your monthly premium, but make sure you can afford the out-of-pocket expense if it arises.
- Take advantage of discounts for safe driving, good credit scores, or installing security systems.
Iowa-Specific Insurance Laws and Regulations
You can learn more about Iowa insurance laws and regulations from the Iowa Insurance Division. Iowa has a law called the Financial and Safety Responsibility Act. If a driver cannot immediately display proof that they can cover the costs of an accident they have caused, they lose their driving and vehicle registration privileges. If a driver has lost their driving license due to a conviction, unpaid fines, or violated OWI laws, they must show proof that they can afford to cover any possible future harm or injuries they may cause.
This law ensures that drivers can pay for damages they cause, even if they don't have insurance. It also protects you from other drivers who may not have enough insurance.
Find the Best Car Insurance Coverage in Iowa Today!
Whether you're a first-time homeowner seeking a comprehensive policy or a driver looking for cheap car insurance in Iowa, it's essential to compare options to find what fits your needs.
With EverQuote, you can quickly and easily compare custom insurance options tailored to your ZIP code and profile. It's free and only takes a few minutes to find the right coverage at the right price.