Iowa Auto Insurance: Is Aut-Owners Insurance Accepted?

Iowa has a motor vehicle financial responsibility law, which means that if you own or drive a car in the state, you'll need proof of your ability to pay for injuries and property damage in the event of an accident. Iowa's minimum coverage liability limits are 20/40/15, meaning motorists are required to carry liability insurance with limits of at least $20,000 per person, $40,000 per accident, and $15,000 for property damage. Auto-Owners Insurance is one of the cheapest companies in Iowa for minimum liability coverage.

Iowa's Motor Vehicle Financial Responsibility Law

• $20,000 for injuries to, or the death of, one person in one accident
• $40,000 for injuries to, or the deaths of, two or more people in one accident
• $15,000 for property damage in one accident

These amounts are known as the state's "financial responsibility minimums". Iowa is what is known as a "fault-based" insurance state, which means that if you are injured in a collision caused by another driver, you can file an insurance claim or lawsuit against that driver to collect compensation for your injuries. To win your case, you must prove that the other driver was at fault for the accident, typically by showing that they drove negligently or carelessly.

You can prove your ability to pay these damages by filing one of the following with the Iowa Department of Transportation:

• A certificate of insurance
• A surety bond
• A $55,000 certificate of deposit

Most drivers in Iowa choose to buy an auto insurance policy with the minimum coverages required by the financial responsibility law. However, it is important to consider whether these minimum coverages are sufficient for your needs. If you are responsible for a collision that causes moderate or severe injuries, you may find that the minimum liability limits do not fully cover the damages. In this case, you would be responsible for paying any remaining damages out of pocket.

It is also important to note that liability insurance does not compensate you for your own injuries or property damage. If you want this type of coverage, you may need to add optional coverages to your policy, such as collision coverage or uninsured/underinsured motorist coverage.

Failure to comply with Iowa's financial responsibility law can result in several penalties, including fines, suspension of your driver's license and vehicle registration, and impoundment of your vehicle.

Iowa's Minimum Coverage Requirements

Iowa's motor vehicle financial responsibility law states that all drivers with cars registered in the state are expected to carry liability insurance with minimum coverage requirements. These include:

• $20,000 for bodily injury liability per person.
• $40,000 for bodily injury liability per accident.
• $15,000 for property damage liability per accident.

These minimum coverage requirements must be met by drivers, as Iowa is an at-fault state, meaning that the driver responsible for an accident is liable for the damage caused, and their insurance typically covers the costs. In other words, the person at fault for an accident is financially responsible for the bodily injury and property damage resulting from the accident.

While Iowa does not mandate collision or comprehensive coverage as part of its minimum coverage auto insurance requirements, lenders often stipulate that borrowers maintain both collision and comprehensive insurance to protect their investment against damage or loss when financing or leasing a vehicle. This ensures the vehicle's value is safeguarded, irrespective of fault or natural events. As such, vehicle owners with a loan or lease agreement are typically the ones who need to secure collision or comprehensive insurance in Iowa.

You do not need to provide proof of liability insurance when you register your car in Iowa. However, you should have it in place before you start operating on the road. Law enforcement may suspend your license or fine you if you fail to provide valid proof when asked for it.

If you're caught driving without insurance in Iowa, you could face different penalties based on your prior offenses. A first offense may result in lighter consequences, while further incidents can lead to more severe punishments. Penalties may include vehicle impoundment, suspension of vehicle registration, driver's license suspension, and the requirement to carry SR-22 insurance proof.

Proof of Insurance

Iowa's motor vehicle financial responsibility law states that all drivers with cars registered in the state are expected to carry liability insurance with minimum coverage limits. This means that if you own or drive a car in Iowa, you need to be able to prove that you can pay for injuries and property damage caused by a collision.

The minimum coverage limits in Iowa are:

• $20,000 per person for bodily injury liability, with a maximum of $40,000 per accident.
• $15,000 per accident for property damage liability.

You do not need to provide proof of liability insurance when you register your car in Iowa. However, you should have it in place before you start driving. If you are unable to provide proof of insurance when asked by law enforcement, your license may be suspended or you may be fined.

There are several ways to prove you can pay the minimum coverage limits in Iowa:

• A certificate of insurance - This can be filed with the Iowa Department of Transportation.
• A surety bond - This is a promise that if you cannot pay for judgments made against you for bodily injuries or property damage, another party will pay in your place. This can be filed with the Iowa Department of Transportation.
• A $55,000 certificate of deposit - This can be obtained by depositing $55,000 with an Iowa bank and providing proof that you do not have any unpaid claims from previous accidents. This can be filed with the Iowa Department of Transportation.
• A bond insurance card - This is issued by the director of the Iowa Department of Transportation if you file either a valid surety bond or a real estate bond worth $55,000 toward future accidents where you are negligent.
• A security insurance card - This is issued by the director of the Iowa Department of Transportation if you file an "endorsed certificate of deposit" with the state treasurer.

It is important to note that Iowa does not require collision or comprehensive coverage as part of its minimum coverage auto insurance requirements. However, these types of coverage may be required by lenders if you are financing or leasing a vehicle.

Additionally, Iowa is a fault-based insurance state, which means that if you are injured in a collision caused by another driver, you can file an insurance claim or lawsuit against that driver to collect compensation for your injuries.

Penalties for Driving Without Insurance

In Iowa, driving without insurance can lead to various penalties, including fines, community service, and the suspension of your driving privileges. The specific penalties you face will depend on whether you have prior offenses for driving without insurance, and whether you caused an accident while uninsured.

First Offense

If this is your first time driving without insurance in Iowa, you may face a fine of $250, or the option to complete community service in lieu of the fine. Your license plates and registration receipt will be removed, and your vehicle may be impounded.

Repeat Offense

If you are caught driving without insurance in Iowa more than once, you will face harsher penalties. In addition to the $250 fine, your vehicle will be impounded, and your license and registration will be suspended for up to 12 months. To get your driving privileges back, you will need to purchase an insurance policy, file an SR-22 form, and pay a $15 administrative fee. You will also have to pay towing and storage fees to recover your vehicle.

Accident While Uninsured

If you cause an accident while driving without insurance in Iowa, the penalties are more severe. If the damage to the other party exceeds $1,500, your license and registration will be suspended for up to 12 months. The suspension may also extend to other vehicles registered under your name, and the car involved in the crash may be impounded.

To reinstate your driving privileges after an accident while uninsured, you must show proof of active insurance or file an SR-22 form within 30 days of the accident. You will also have to pay a $250 fine, a $15 administrative fee, a $200 civil penalty, and a $20 license renewal fee. You will also be required to pass a knowledge test, a driving exam, and a vision screening test.

Other Consequences

In addition to the legal penalties, there are other consequences of driving without insurance in Iowa. Your car insurance premiums are likely to increase, and you may find it more difficult to be compensated for damages if you are not at fault in an accident. If you are at fault, you will be personally responsible for all damages, including repair costs, medical bills, and legal fees.

Optional Coverages

Auto-Owners Insurance offers a range of optional coverages that provide enhanced protection beyond the state minimum auto insurance requirements in Iowa. These add-ons can help you cover costs associated with non-collision events, vehicle repairs, medical expenses, and more. Here is a detailed list of optional coverages offered by Auto-Owners Insurance:

• Comprehensive Coverage: This covers repairs to your vehicle for damages caused by factors other than collision, such as fire, vandalism, weather events, theft, or accidents involving animals. It ensures you are protected against a wide range of incidents that may occur on the road.
• Uninsured/Underinsured Motorist Coverage: This coverage comes into effect if you are injured, your vehicle is damaged, or someone dies in an accident caused by a driver without insurance or with inadequate liability limits. It covers medical expenses, lost wages, and repair costs, providing financial protection in situations where the at-fault driver may not be able to compensate you fully.
• Medical Payments and Personal Injury Protection: These coverages pay for medical expenses, hospitalization, and rehabilitation expenses for both you and your passengers in the event of an accident. This ensures that you and your passengers can receive the necessary medical care without worrying about the financial burden.
• Road Trouble Service: This coverage provides assistance if you find yourself stranded on the road due to common issues such as a flat tire, running out of gas, minor mechanical malfunctions, or a dead battery. With 24/7 availability, you can have peace of mind knowing that help is just a phone call away.
• Rental Car Reimbursement: This coverage helps pay for a rental car when your vehicle is unusable due to an accident. It also covers additional expenses, such as food and lodging, if you are stranded away from home, ensuring that you can continue with your daily life while your vehicle is being repaired.
• Collision Coverage Advantage: Auto-Owners Insurance offers a unique benefit where they will waive your collision deductible if you are involved in an accident with another vehicle insured by them. This can result in significant savings and streamline the claims process by directly handling the repairs.
• Common Loss Deductible: If you insure both your home and vehicle with Auto-Owners Insurance, and you experience an event that damages both, they offer a reduction or waiver of your auto deductible, depending on the amount of your personal property deductible. This can provide financial relief during challenging times.

These optional coverages provide Auto-Owners Insurance customers with enhanced protection and peace of mind. By understanding the specifics of each coverage option, Iowa residents can make informed decisions about their auto insurance and ensure they have the right level of protection for their needs.

Frequently asked questions