Last Updated on January 2, 2026

Iowa is often one of the more affordable states for car insurance, but the “best” policy still depends on your ZIP code, vehicle, driving record, age, and credit-based insurance score. Recent estimates put the average cost of full coverage in Iowa at roughly $1,900–$2,100 per year, while minimum coverage averages in the mid-$300s per year—well below many states.

In this guide, you’ll learn which insurers are worth comparing in Iowa, what coverage Iowa requires, what happens if you drive uninsured, and the easiest ways to lower your premium.

Key Takeaways

1. Iowa Is Typically Below the National Average: Many recent rate studies place Iowa’s average full coverage premium around the low-$2,000s per year, with minimum coverage often in the mid-$300s.
2. Minimum Liability Limits Are 20/40/15: Iowa requires $20,000 per person and $40,000 per accident for bodily injury liability, plus $15,000 for property damage liability.
3. UM/UIM Is Usually Included by Default: Iowa insurers generally include uninsured/underinsured motorist coverage unless you reject it in writing, so confirm your selections before you sign.
4. Driving Uninsured Can Trigger Serious Consequences: Beyond fines, Iowa can suspend driving and registration privileges after certain situations, and some drivers may need an SR-22 filing to get back on the road.

Top Auto Insurance Companies in Iowa to Compare

There’s no single “best” car insurance company for every Iowa driver. The right pick depends on whether you want the lowest price, the best claims experience, a local agent, or strong discounts. Start by getting quotes from at least 3–5 insurers, including a mix of big national brands and regional companies.

Here are 10 insurers that commonly compete for Iowa drivers (and are a strong place to start your quote comparisons):

1. USAA (If Eligible)

USAA is frequently a top pick for eligible military members, veterans, and qualifying family members. If you can get coverage, it’s worth comparing because pricing and customer satisfaction tend to be strong.

2. State Farm

State Farm is a go-to option in Iowa if you prefer working with a local agent or want a well-known carrier with a large claims network. It’s also commonly competitive for drivers with clean records.

3. GEICO

If you’re shopping primarily for price and don’t need an in-person agent, GEICO can be a strong fit. It’s known for online tools, a fast quote process, and pricing that often lands near the low end for many driver profiles. If you’re price-shopping, it’s helpful to understand when GEICO tends to be the cheapest (and when it isn’t).

4. Progressive

Progressive is a strong insurer to compare in Iowa if you like a “build-your-policy” approach, want robust online tools, or have a non-perfect driving record. Progressive also tends to offer a wide range of discounts and usage-based options in many markets.

5. Travelers

Travelers can be a smart quote to grab if you want a mainstream company that sometimes prices well for experienced drivers and families—especially when bundled with other policies.

6. Farm Bureau Financial Services

Farm Bureau Financial Services is a regional-style option with a strong presence in the Midwest. In many cases, it’s most attractive for drivers who like agent support and want to explore bundling options.

7. American Family Insurance

American Family Insurance is worth checking in Iowa if you’re discount-eligible (bundling, loyalty, safe driver programs, and more). It’s often not the “automatic cheapest,” but discounts can change the math quickly for the right household.

8. Auto-Owners

If you care a lot about service and claims handling, Auto-Owners is a company many drivers like to compare—especially when shopping through an independent agent. It may not win on price for every driver, but it’s often competitive for certain profiles.

9. Nationwide

Nationwide can be a good quote to pull if you plan to bundle home and auto or want a carrier with multiple product lines. Bundling discounts can sometimes offset a higher “base rate.”

10. Allstate

Allstate is another well-known insurer with local agent availability in many areas. It can be a solid option if you want hands-on support, policy add-ons, or a more guided insurance experience.

What Does “Full Coverage” Mean in Iowa?

“Full coverage” isn’t an official policy type—it’s a common phrase that usually means you carry Iowa liability insurance plus coverage for your own vehicle. In most cases, full coverage includes:

• Liability coverage (required by Iowa law) to pay for injuries and damage you cause to others.
• Collision coverage (optional) to help pay for damage to your car after a crash. Learn more about collision coverage.
• Comprehensive coverage (optional) to help pay for theft, vandalism, hail, falling objects, and other non-crash damage. Learn more about comprehensive coverage.

If you lease or finance your vehicle, your lender will usually require comprehensive and collision. Even if you own your car outright, full coverage can be worth it if you couldn’t comfortably replace your vehicle out of pocket.

Iowa Minimum Car Insurance Requirements

Iowa requires drivers to carry a specific minimum amount of auto liability insurance. This coverage pays for other people’s injuries and property damage if you cause an accident.

Iowa’s required minimum liability limits are commonly written as 20/40/15:

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

These are the legal minimums. Many drivers choose higher limits for better protection—especially because medical bills and vehicle repair costs can exceed these amounts quickly. If you’re unsure what limits make sense, start with this guide to minimum coverage auto insurance.

Uninsured/underinsured motorist (UM/UIM) coverage: Iowa law requires insurers to include UM/UIM coverage in auto policies at least up to the state’s minimum limits unless you reject the coverage in writing. (In other words, it’s typically added by default, but you may be able to opt out.)

Driving Without Insurance in Iowa

It’s illegal to drive in Iowa without the required insurance. If you’re pulled over and can’t show proof of insurance, you may face penalties like fines and even vehicle impoundment depending on the situation.

If you’re worried about what happens during a traffic stop, start with this guide on tickets for no proof of insurance.

Also, Iowa’s Financial and Safety Responsibility Act can trigger additional consequences after a crash. For example, if an accident involves injury or property damage over a certain threshold and you can’t show proof of insurance, the state can suspend driving and/or registration privileges.

How Incidents Affect Car Insurance Rates in Iowa

Insurance companies price policies based on risk. A serious violation (like an OWI/DUI), an at-fault accident, a lapse in coverage, or poor credit can all raise premiums—sometimes for several years. Here’s what to know.

Car Insurance in Iowa After an OWI/DUI

An OWI/DUI is one of the most expensive marks you can have on your record. Many drivers see a major increase at renewal, and some insurers may require extra filings or restrict coverage options. Learn more about how much insurance can go up after a DUI.

Car Insurance in Iowa After an At-Fault Accident

An at-fault accident can increase your premium—especially if the claim payout is large. If you have one minor accident, some insurers may be more forgiving than others, so it’s worth re-quoting your policy before your next renewal.

Car Insurance in Iowa for Young Drivers

Teen and young drivers typically pay the highest rates because insurers view newer drivers as higher risk. The fastest way to cut costs is to compare multiple insurers, look for good-student and safe-driver discounts, and consider staying on a family policy when possible. Here are more strategies for finding cheaper car insurance for young drivers.

Car Insurance in Iowa With Poor Credit

Iowa insurers can use a credit-based insurance score when calculating rates. If your credit is limited or poor, you may pay more—even with a clean driving record. This explainer on your car insurance score breaks down how it works and what you can do about it.

How to Get Cheaper Car Insurance in Iowa

If you want to lower your premium without cutting important coverage, these are the most reliable levers to pull:

• Compare quotes at every renewal: Rates can vary widely by insurer, even for the same driver.
• Ask about discounts: Good student, multi-car, bundling, safe driver, homeowner, defensive driving, and pay-in-full discounts are common.
• Consider a higher deductible: Raising your comprehensive/collision deductible often lowers the premium (just be sure you can afford it if you file a claim).
• Keep continuous coverage: A lapse can raise rates. If you’re dealing with a gap, read this guide on what happens if your car insurance lapses.
• Shop your vehicle costs: Insurance can vary significantly by make/model and trim—especially for newer vehicles with expensive sensors and parts.

SR-22 Insurance in Iowa

Some Iowa drivers are required to file proof of financial responsibility (commonly an SR-22) after serious violations, certain suspensions, or other high-risk situations. An SR-22 isn’t a separate policy—it’s a filing that verifies you carry active coverage.

If you’ve never dealt with SR-22 before, start here: how long an SR-22 lasts. And if you’re price shopping, here are tips for finding cheap SR-22 insurance.

If you’re unable to get coverage through standard carriers, you may need to explore non-standard insurers or an assigned-risk route. Learn more about assigned risk auto insurance and how it works.

FAQs on Car Insurance in Iowa

Conclusion: How to Find the Best Car Insurance in Iowa

Iowa tends to have lower-than-average car insurance costs, but prices still vary a lot by city, household, and driver profile. The best way to find the right policy is to compare multiple quotes, choose liability limits that protect your assets, and add comprehensive/collision when it makes sense for your vehicle.

If your rates jump after a ticket, accident, or lapse, don’t assume you’re stuck—re-shop your policy and ask about discounts before you renew.