If you’re planning to purchase car insurance, Iowa law requires you to meet the minimum liability coverage requirements in the state. Regardless of how much auto insurance you intend to buy, bear in mind that your premium may vary depending on which insurer you choose. Doing comparison shopping is one of the best ways to get a good deal. Check out this detailed guide to car insurance in Iowa:
How Much Auto Insurance Do You Need to Drive Legally in Iowa?
Every driver in Iowa must have an auto insurance policy with at least the following coverage limits:
- Bodily injury liability coverage for each individual in an accident: $20,000.
- Bodily injury liability coverage for an entire accident: $40,000.
- Property damage liability coverage for an entire accident: $15,000.
According to ValuePenguin, Iowa is one of the few states that don’t require you to purchase auto insurance if you have an acceptable alternative. For example, you need to show proof of financial responsibility in the event of an accident. Failure to do so may lead to the loss of driving privileges.
How Do You Choose the Right Auto Insurance in Iowa?
Many auto insurance providers emphasize their low premiums as part of their marketing strategies. Nonetheless, this doesn’t mean the cheapest car insurance policy is the best option. Considering the huge financial losses you can potentially sustain in an accident, it’s recommended that you purchase a policy that provides adequate protection. The Zebra advises you to focus on finding an auto insurance policy that offers the best value rather than making your decision based on cost alone.
What Are the Factors That Can Increase Your Auto Insurance Rate?
Car insurance companies use many factors to evaluate your likelihood of getting into an accident and filing a claim. If you’re considered a high-risk driver, you can expect to pay a higher premium. The following are some of the factors that can cause your auto insurance rate to go up:
Driving Record
If you have a clean driving record, you’ll enjoy more affordable auto insurance than someone with an at-fault accident, speeding ticket, or DUI citation in their driving history. In Iowa, you can save up to 35 percent on your car insurance premium if you don’t have a recent at-fault accident. Additionally, you may be able to get a safe-driving discount from your insurer.
In contrast, if you’re found guilty of speeding, you’ll have to pay a higher car insurance rate, although not as high as someone who causes an accident. Keep in mind that one at-fault accident can negatively affect your insurance cost for three to five years. Also, getting a DUI conviction will make you risker to insure than the average driver, which also results in a higher premium.
Credit Score
If you have a poor credit score, auto insurance providers will regard you as a high-risk driver and charge you more for coverage. However, the formula for calculating premiums may vary from one insurance company to another, so the impact your credit score has on your rate depends on your choice of insurer. Since each insurer treats credit scores differently, it pays to shop around and compare quotes.
Age
Auto insurance companies tend to charge young drivers higher prices because they typically have less driving experience than older drivers. However, drivers in their teens or early 20s usually see their premiums fall as they become older, with a significant decline when they reach 25 years old.
Coverage
Choosing a car insurance policy with higher liability limits and collision and comprehensive coverage will cause your premium to go up. Although it isn’t required in Iowa, such a policy may be worth getting because it offers much better protection than a basic policy.
How Do You Get Affordable Auto Insurance in Iowa?
If you want to get a cheap auto insurance policy in Iowa, you may find these tips from WalletHub helpful:
- Compare quotes: You should include local insurers in your search for affordable auto insurance. In Iowa, some regional insurance companies, such as Auto-Owners Insurance, Shelter, and Farm Bureau Mutual, may offer lower rates than national insurers such as GEICO, Allstate, and Travelers. They also have comparable customer service ratings.
- Know what affects your premium: It’s a well-known fact that your driving habits and claims history can have an impact on your auto insurance cost. However, insurance companies in Iowa also take other factors into consideration when setting premiums, such as your age, credit score, gender, and marital status. Your vehicle and annual mileage can also influence your rate.
- Maintain coverage: Usually, you’ll see your car insurance cost go up if you have a coverage lapse. On average, drivers in Iowa who fail to continuously maintain coverage pay 9 percent more than those who have five or more years of continuous insurance history.
- Choose the right coverage: You’re required to have auto liability insurance so that you can pay for the losses that other drivers sustain in an accident that’s your fault. However, comprehensive and collision coverage are generally optional and may not be worth buying if you own an older vehicle. Also, you may want to consider getting usage-based insurance if you don’t drive a lot or opting for a higher deductible or lower coverage limits to reduce your premium. While you shouldn’t skimp on coverage, you have to make sure you don’t pay more for auto insurance than necessary.
- Look for discounts: Leading auto insurance providers in Iowa offer an array of discounts to provide drivers with opportunities to save money. You may qualify for a discount if you’re a good driver, student, homeowner, veteran, or someone who is willing to go paperless.
Finding a good deal on auto insurance in Iowa requires time and effort. However, it’ll be worth your while because it can help you save a substantial amount of money over the long run. Make sure the policy you choose has enough coverage to protect your assets in the event of an accident.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
The Best and Cheapest Iowa Car Insurance Quotes (2021) | valuepenguin.com
Cheap Iowa Car Insurance | thezebra.com
2021 Best Cheap Car Insurance in Iowa | wallethub.com
How Often Do Car Insurance Companies Check Your Driving Record? | caranddriver.com
DUI Insurance Rates: Everything You Need to Know | caranddriver.com
Auto Insurance Tips: Everything You Need to Know | caranddriver.com
Car Insurance | caranddriver.com
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