Drivers in Iowa are required by law to maintain minimum liability insurance to legally operate their vehicles. Iowa is an at-fault state, so 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.
Options You Should Consider In Iowa
Though only liability is required, consider adding these for extra protection:
- Collision and Comprehensive Coverage
- Uninsured/Underinsured Motorist Coverage (UM/UIM)
- Medical Payments Coverage
- Roadside Assistance and Rental Reimbursement
Lenders may require full coverage if your car is financed or leased.
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.
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 stack up against neighboring states? Check out:
Minnesota,
Missouri,
Nebraska, and
South Dakota.