INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Iowa for 2024

Updated Feb. 3, 2024
Fact checked
Allied is generally the cheapest car insurance in Iowa for full coverage policies.

Compare car insurance rates in your area!

See if you qualify for a lower rate in less than 2 minutes

By clicking the button below I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Check Rates

FAST, EASY & FREE

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

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 $1,129 for full coverage policies, compared to the national average of $1,582. However, factors such as age, driving history, credit, and location influence the cost of auto insurance in the Hawkeye State.

In this article

Key takeaways

  • The average cost of car insurance in Iowa is $1,129 per year for full coverage policies.
  • State-minimum liability coverage averages $320 per year.
  • Teen drivers pay a yearly average of $2,602 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 $1,129 per year, on average — compared to the national average of $1,582. 

State-minimum liability coverage averages just $320 per year. However, rates are much higher for teens. Teen drivers pay $2,602 per year, more than double the state average.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,129/year $320/year Allied
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$2,602/year $1,412/year $1,597/year

Get rates, offers & more from top rated insurance providers!

By clicking the button below I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Check Rates

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 Allied offers the lowest average premiums for full coverage policies. 

However, Auto-Owners, an insurer that issues policies in 26 states, has the lowest average premiums for state minimum coverage.

Provider Full coverage Minimum liability coverage
Allied $673/year $300/year
Grinnell $1,800/year $348/year
Allstate $1,355/year $520/year
Auto-Owners $1,247/year $223/year
GEICO $1,105/year $355/year
Progressive $1,281/year $344/year
State Farm $750/year $227/year

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 $1,079 per year, hundreds less than the average premiums for drivers with poor credit.

Credit health Avg. annual premium
Poor (550-649) $2,255/year
Average (650-699) $1,391/year
Good (700-749) $1,219/year
Excellent (750+) $1,079/year

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 by $1,371 per year — more than double the state average. And speeding tickets or at-fault accidents will typically cause your premiums to increase by hundreds per year.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,129/year $1,980/year $851
DUI $1,129/year $2,500/year $1,371
Speeding ticket $1,129/year $1,706/year $577

*Assumes clean driving record with good credit

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 drivers that are 18 years of age average $2,895 per year — significantly more than the state average.

Rates usually decrease as you age, with drivers in their 60s paying the lowest average premiums.

Age Avg. annual premium
18 $2,895/year
25 $1,303/year
30 $1,170/year
40 $1,118/year
60 $1,115/year

Iowa car insurance rates by city

Car insurance premiums vary by location. In Iowa, residents of Sioux City tend to pay the highest premiums, with an average of $1,544 per year. Why is it so expensive to insure a vehicle in the city?

Sioux City 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 seven, meaning that 93% of cities in the U.S. are safer.

City Avg. annual full-coverage premium
Sioux City $1,544/year
Davenport $1,482/year
Ames $1,339/year
Des Moines$1,330/year
Iowa City $1,310/year
Cedar Rapids $1,265/year

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.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

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 $1,129 per year, compared to the national average of $1,582.

How much is car insurance per year in IA?

The average cost of car insurance in Iowa is $1,129 per year for full coverage policies. Drivers with policies that only meet the state-minimum liability requirements pay a yearly average of $320. 

  • You could save up to $500 with some companies
  • Compare dozens of providers in under 5 minutes
  • Fast, free and easy way to shop for insurance
  • Quickly find the perfect rate for you

Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.