Iowa Auto Insurance

Iowa Auto Insurance

There are approximately 2.2 million registered drivers in Iowa.  While state law does not require all drivers to be insured, the state’s financial responsibility law may require that your license be suspended if you are in an accident and not covered by insurance. Iowa drivers can ensure they avoid this situation by making sure they have state-appropriate Auto Insurance.

According to the Iowa Department of Transportation, two demographic shifts are impacting drivers in the state. First, the population is gradually shifting towards more urban areas where traffic congestion causes a higher incidence of accidents. This shift also leaves rural areas with smaller populations and may cause their highway infrastructure to deteriorate and increase the riskiness of driving rural roads.

Second, the population is generally getting older and many older drivers require improvements to the infrastructure in order to continue driving safely, such as increased print size on road signs. While these two factors may increase risk for Iowa drivers, one way to minimize personal risk is to ensure you are covered by a good Auto Insurance policy.

The majority of Iowa households have one or two cars, but an increasing number have three or more.  Having multiple vehicles driven by multiple drivers can make it confusing to purchase auto insurance.  You may want different coverage for your teenage child driving a 10-year old vehicle than you want for yourself driving a new car.

Key Statistics according the Insurance Information Institute and the National Highway Safety Administration:

Uninsured Motorists

Nationwide: 12.6% (2012)

Iowa: 9.7% ((2012)

Insurance Coverage Requirements:

Bodily Injury Liability

Property Damage Liability

In most instances motorists are required to carry a minimum of $40,000 for all persons injured in an accident, with a maximum of $20,000 per person. They are also required to carry $15,000 for property damage. If you’ve had a major medical experience lately, or know someone who has spent several days in a hospital you probably realize how low these limits are compared to the reality of hospital care costs. A more common limit for Iowa drivers is $100,000 per person, $300,000 per accident bodily injury and $100,000 per accident property damage. Many consider an umbrella with an additional $1,000,000 in limits available. Considering the chain reaction accidents that occur on icy Iowa roads it would seem prudent to have higher limits of auto insurance protection.

Average Car Insurance Premium

The Insurance Institute uses an “average person” to establish an average rate for an average car. This figure is only good for comparison as so many factors go into establishing an auto rate.

National Average Cost Per Year: $841 (2013)

Iowa Cost Per Year: $572 (2013)

Crash Statistics

Fatalities: 321 (2014)

Alcohol Impaired Driver Fatalities: 93 (2014)

Fatalities per 100 million miles driven (IA): 1.00 (2013)

Fatalities per 100 million miles driven (Nationwide): 1.09 (2013)

A local insurance agent who is familiar with Iowa laws and driving conditions can help you to sort through your options and craft a policy that is right for your family.

By reaching out to a trusted agent familiar with the factors affecting drivers in your area of the state, you can be confident that you’ll end up with the coverage you need to protect all of the vehicles and drivers in your family.  Contact a local Iowa agent today.

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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.