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Iowa is renowned for its agriculture and parks and enjoys one of the lowest living costs in the U.S. This is reflected in its affordable car insurance premiums.
Iowans pay an average cost of $124 per month, compared to the national average of $193. However, factors such as age, driving history, credit, and location influence the cost of auto insurance in the Hawkeye State.
Key takeaways
- The average cost of car insurance in Iowa is $124 per month for full coverage policies.
- State-minimum liability coverage averages $64 per month.
- Teen drivers pay a monthly average of $290 for coverage.
How much does car insurance cost in Iowa?
Compared to other states, car insurance is cheaper in the Hawkeye State. Drivers with full coverage policies that include liability, collision, and comprehensive protection pay $124 per month, compared to the national average of $193.
State-minimum liability coverage averages just $64 per month. However, rates are much higher for teens. Teen drivers pay $290 per month.
| Avg. cost for full coverage | Avg. cost for minimum coverage |
| $124/month | $64/month |
| Avg. for young drivers | Avg. cost for seniors | Avg. for driver with a DUI |
| $290/month | $102/month | $180/month |
Average cost of car insurance in Iowa by provider
From national brands to smaller, regional insurers, there are several insurance companies to choose from in Iowa. We found that USAA, GEICO, and Farmers all offer low average premiums for full coverage policies.
| Provider | Monthly full coverage premiums | Monthly liability-only premiums |
| Allstate | $84 | $54 |
| Auto-Owners | $64 | $41 |
| GEICO | $74 | $50 |
| Progressive | $113 | $58 |
| USAA | $68 | $43 |
| Farmers | $96 | $62 |
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How does credit score affect car insurance rates in Iowa?
Insurance companies that are licensed in Iowa are permitted to use drivers' credit histories as a factor to determine premiums. In general, those with excellent credit pay much less for coverage.
In Iowa, we found that those with excellent credit pay an average of $120 per month, much less than the average premiums for drivers with poor credit.
| Credit health | Avg. monthly premium |
| Poor (550-649) | $149 |
| Average (650-699) | $125 |
| Good (700-749) | $122 |
| Excellent (750+) | $120 |
Average car insurance rates for high-risk drivers in Iowa
If you speed, drive while distracted by your phone, or get behind the wheel after drinking, you risk severe consequences, including sky-high premium increases.
In Iowa, one driving under the influence (DUI) conviction can increase your premiums to $180 per month. And speeding tickets or at-fault accidents will also typically cause your premiums to increase significantly.
| Violation | Avg. monthly premium |
| At-fault accident | $184 |
| DUI | $180 |
| Speeding ticket | $173 |
Average rate:
How does age affect car insurance rates in Iowa?
If you're a teen or the parent of a teen driver in Iowa, be prepared for sticker shock when shopping for car insurance. Premiums for teen drivers average $290 per month — significantly more than the state average.
Rates usually decrease as you age.
| Age | Avg. monthly premium |
| Teen | $290 |
| 20s | $171 |
| 30s | $136 |
| 40s | $127 |
| 60s | $101 |
Iowa car insurance rates by city
Car insurance premiums vary by location. In Iowa, residents of Council Bluffs tend to pay the highest premiums. Why is it so expensive to insure a vehicle in the city?
Council Bluffs has a higher incidence rate of crime, so drivers in the city are more likely to file claims related to accidents or theft. According to NeighborhoodScout, Sioux City has a crime rating of six, meaning that 94% of cities in the U.S. are safer.
| City | Avg. monthly full-coverage premium |
| Sioux City | $141 |
| Davenport | $138 |
| Council Bluffs | $144 |
| Des Moines | $134 |
| Cedar Rapids | $136 |
IA's minimum car insurance requirements
Iowa's laws do require all drivers to have insurance, but its minimum coverage requirements are lower than most other states require:
- $20,000 in bodily injury insurance for one person
- $40,000 in bodily injury insurance for two or more people
- $15,000 in property damage insurance
A policy that meets only the state-minimum coverage will likely be inexpensive — the average cost in Iowa is only $320 per year — but most people will need additional coverage to protect themselves and their property adequately.
Considering that the Insurance Research Council found that 11.3% of drivers in Iowa were uninsured, it may be wise to add uninsured/underinsured coverage to your policy.
How to save money on car insurance in Iowa
To save money on your premiums in Iowa, use these tips:
- Complete the Iowa Driver Improvement Program: This eight-hour course teaches drivers safe driving skills. If you complete the course with an eligible provider, you could qualify for a discount on your car insurance.
- Ask about other discounts: Many drivers can qualify for additional discounts from their insurance company. For example, you may be eligible for a discount for having multiple types of insurance through the same company or by insuring two or more vehicles.
- Sign up for usage-based insurance (UBI): UBI policies, also known as pay-per-mile insurance, allow some drivers to save money on their car insurance by using a telematics device to track their driving habits and mileage. Those who maintain safe driving habits can save a significant amount of money. Several insurance companies in Iowa offer UBI coverage, including Progressive and State Farm.
- Consider other insurance options: If you've stuck with one insurance company for a while, it may be worth shopping around. You may be surprised to find that other insurers offer lower rates for the same coverage. You can get quotes from the best car insurance companies to compare your options.
FAQs about car insurance costs in IA
Is car insurance expensive in IA?
Iowa has a low cost of living, and the lower price is reflected in its car insurance premiums too. The average cost of a full coverage policy is $124 per month, compared to the national average of $193.
How much is car insurance per year in IA?
The average cost of car insurance in Iowa is $124 per month for full coverage policies. Drivers with policies that only meet the state-minimum liability requirements pay a monthly average of $64.
Data throughout provided by Insurify.
Average rate:
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