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.
- Key takeaways
- How much does car insurance cost in Iowa?
- Average cost of car insurance in Iowa by provider
- How does credit score affect car insurance rates in Iowa?
- Average car insurance rates for high-risk drivers in Iowa
- How does age affect car insurance rates in Iowa?
- Iowa car insurance rates by city
- IA’s minimum car insurance requirements
- How to save money on car insurance in Iowa
- FAQs about car insurance costs in IA
- 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|
|Avg. for young drivers||Avg. cost for seniors||Avg. for high-risk drivers|
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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|
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|
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|
*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|
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|
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.
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.