Iowa Car Insurance: The Complete 2025 Guide
Enjoy some of America's lowest car insurance rates in the Hawkeye State.
Iowa Quick Facts
✓ The Iowa Advantage
Iowa consistently ranks among the top 10 cheapest states for car insurance. Low population density, minimal traffic congestion, and a stable insurance market keep rates affordable. The average Iowan pays $1,200+ less than the national average.
Iowa Minimum Insurance Requirements
| Coverage Type | Minimum Required | Notes |
|---|---|---|
| Bodily Injury (per person) | $20,000 | Lower than most states |
| Bodily Injury (per accident) | $40,000 | Total per accident |
| Property Damage | $15,000 | Very low—recommend increasing |
| Uninsured Motorist | Optional | Recommended |
Note: Iowa's $15,000 property damage minimum is among the lowest in the nation. Modern vehicles easily cost $35,000+. Increase to at least $50,000 PD.
Average Car Insurance Costs in Iowa
| Coverage Level | Annual Premium | Monthly Cost |
|---|---|---|
| State Minimum | $356 | $30 |
| Full Coverage | $1,478 | $123 |
Costs by Iowa City
| City | Avg. Annual Premium | vs. State Avg. |
|---|---|---|
| Des Moines | $1,680 | +14% |
| Cedar Rapids | $1,520 | +3% |
| Davenport | $1,590 | +8% |
| Iowa City | $1,410 | -5% |
| Rural Iowa | $1,280 | -13% |
Top Car Insurance Companies in Iowa
Farm Bureau Financial Services
Iowa-based company. Dominant in rural areas. Membership required. Often cheapest for farmers.
State Farm
Largest national insurer in Iowa. Strong agent network. Good bundling discounts.
GEICO
Competitive rates for urban drivers. Online-first service.
Grinnell Mutual
Iowa-based mutual company. Known for excellent claims service.
Iowa-Specific Considerations
Severe Weather
Iowa is part of "Tornado Alley" and sees frequent hailstorms. Comprehensive coverage is essential to protect against weather damage.
Deer Collisions
Iowa ranks in the top 10 for deer-vehicle collisions. Comprehensive coverage handles animal strikes—collision does not.
Modified Comparative Fault (51%)
You can recover damages if you're 50% or less at fault. At 51%+ fault, you recover nothing.
Bottom Line: Iowa Car Insurance
Iowa is one of the best states for cheap car insurance. Take advantage of low rates, but don't stick with the dangerously low $15,000 property damage minimum.
Shop Farm Bureau (especially for rural drivers), State Farm, and GEICO. Add comprehensive coverage for weather and deer protection.