Driving without car insurance for Iowa is illegal. Iowa car insurance works off of the tort system. This means that in case of an accident, the responsible driver pays for all the expenses related to the accident. The required car insurance for Iowa is liability coverage at 20/40/15 or $20,000 for one person bodily injury per accident, $40,000 for two or more people bodily injury per accident and $15,000 for property damage. In the event of an accident, you are required to provide proof of financial responsibility. Your insurance can be used as your proof of financial responsibility in case of accident or traffic violation.

Although that is the required minimum insurance coverage for Iowa, many insurance providers will recommend additional coverage for those who can afford it. This is because the required minimum coverage does not include coverage for you and your passengers injury and for the damages to your property. Also, for instance if you have $20,000 coverage for the injury of one person but the medical bill is $50,000, you will have to pay the balance of $30,000. So, if you can afford it, it is better to have higher and additional coverage for total protection and piece of mind. Examples of additional insurace coverages are uninsured/underinsured motorist coverage, comprehensive insurance coverage and collision insurance coverage. Although you will have to pay higher premiums, it will protect you from bankruptcy in case you fail to pay the additional expenses not covered by your car insurance for Iowa.

The rates of your car insurance are determined by your driving habits. Many states have an insurance credit rating tool where good credit will equal lower car insurance rates. In Iowa, the rates of your car insurance coverage are determined by your driving record, your age, your place of residence, the driving records of members of your household and the type of your vehicle.

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