Iowa may be known for its farmland and rural highways, but drivers still need proper auto insurance. By law, all vehicle owners must maintain liability coverage to legally drive. Iowa is an at-fault state, meaning the driver responsible for an accident is financially liable for damages. Below is a summary of Iowa’s insurance requirements for 2025.
Iowa Car Insurance Minimums Explained
The state mandates these minimum liability limits:
- Bodily Injury Liability: $20,000 per person / $40,000 per accident
- Property Damage Liability: $15,000 per accident
Referred to as 20/40/15 coverage.
- Minimum liability: 20/40/15 coverage
- Proof of insurance required
- No real-time verification system
- Uninsured driving leads to fines & license suspension
- Electronic proof of insurance is accepted
Optional Coverages to Consider in Iowa
While Iowa law only requires liability insurance, many drivers choose extra protection because of the state’s unique driving conditions. Here are some coverages worth considering:
- Collision and Comprehensive Coverage: Helpful if you frequently drive on gravel or rural roads where accidents and damage from deer strikes, hail, or flooding are more common. Comprehensive will also cover non-collision losses like tornado or storm damage, which Iowa drivers often face.
- Uninsured/Underinsured Motorist Coverage (UM/UIM): Not every driver in Iowa carries adequate insurance. UM/UIM helps protect you if you’re hit by someone with little or no coverage — especially important on rural highways where accidents may involve out-of-state drivers or farm vehicles.
- Medical Payments Coverage (MedPay): Covers medical expenses for you and your passengers regardless of fault. Since Iowa is an at-fault state and doesn’t require Personal Injury Protection (PIP), MedPay can fill the gap for immediate medical costs after an accident.
- Roadside Assistance and Rental Reimbursement: In rural parts of Iowa, a breakdown could leave you far from the nearest service station. Roadside assistance covers towing, lockouts, or flat tires, while rental reimbursement ensures you won’t be stranded if your vehicle is in the shop.
If your car is financed or leased, your lender will likely require full coverage (liability plus collision and comprehensive).
Consequences of Driving Uninsured in Iowa
Driving uninsured in Iowa can lead to:
- Fines and possible license suspension
- Vehicle registration suspension
- Requirement to file SR-22 insurance proof
Proof of Insurance Laws
Drivers must carry proof of insurance and present it when requested by law enforcement or during vehicle registration and renewals. Official info is available from the Iowa DOT Insurance Requirements page.
Frequently Asked Questions About Iowa Car Insurance
Is car insurance mandatory in Iowa?
Yes. Iowa requires all vehicle owners to maintain liability insurance that meets state minimum coverage levels.
What are Iowa’s minimum liability coverage requirements?
Iowa mandates 20/40/15 coverage — $20,000 per person, $40,000 per accident for bodily injury, and $15,000 for property damage.
Does Iowa have a real-time insurance verification system?
No. Iowa relies on proof of insurance during vehicle registration and traffic stops; it does not have statewide electronic verification.
What penalties apply for driving uninsured in Iowa?
Fines, license suspension, and registration revocation can result from uninsured driving, with increased penalties for repeat offenses.
Can I use electronic proof of insurance in Iowa?
Yes. Iowa accepts electronic insurance cards and mobile app proof during traffic stops.
Curious how Iowa’s insurance laws compare? Check out:
Minnesota,
Missouri,
Nebraska, and
South Dakota.