INSURANCE - CAR INSURANCE

Best Car Insurance in Iowa for 2024

Updated March 20, 2024
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State Farm generally has the cheapest full coverage policies in Iowa.

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Outsiders often think of Iowa as rolling cornfields, covered bridges, and the Field of Dreams. But locals know there is much more to explore, like the Loess Hills National Scenic Byway, the River Bluffs Scenic Byway, and multiple roadside attractions. 

Thankfully for residents starting a road trip through the Hawkeye State, car insurance costs in Iowa are affordable compared to the national average.

In this article

Key takeaways

  • The best car insurance in Iowa is State Farm, which costs $750 a year for comprehensive coverage.
  • Drivers with a clean driving record pay a monthly average of $94 in Iowa.
  • Sioux City drivers pay the most for full coverage, averaging $1,544 per year.

Best car insurance companies in Iowa

The best car insurance in Iowa is State Farm, which offers full coverage policies for an average of $750 annually. USAA generally had the lowest minimum coverage in Iowa, costing an average of $217 per year. Allstate had the most expensive full coverage insurance on our list, averaging $1,355 annually.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 890/1,000 $929/year $217/year
State Farm 833/1,000 $750/year $227/year
Farmers 819/1,000 $816/year $390/year
GEICO 819/1,000 $1,105/year $355/year
Allstate 806/1,000 $1,355/year $520/year
Progressive 803/1,000 $1,281/year $344/year
Nationwide 792/1,000 $1,157/year $684/year

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USAA: Highest customer satisfaction

USAA earned the highest customer satisfaction score in Iowa and offered the cheapest minimum coverage, averaging just $217 annually. However, its full coverage insurance was significantly more expensive than State Farm and Farmers. While USAA has multiple traditional policy options, it doesn’t have extensive optional policies, and its coverage is only available to current and former military members and their families.

Pros
  • USAA has multiple discounts, including up to 30% off for using the SafePilot program
  • It has some optional coverages, like rental reimbursement
Cons
  • Only current and former military members and their families can apply for USAA policies
  • You can likely find cheaper full coverage insurance with a competitor

Get a quote now | USAA review

State Farm: Most affordable coverage

State Farm offers Iowa residents the most affordable full and minimum coverage available to everyone in the state. It has standard and some optional specialty policies, like rideshare driver coverage. State Farm earned second place in customer satisfaction and has multiple discounts, including offering savings for three or more years without an accident.

Pros
  • State Farm has the most affordable coverage in Iowa
  • It has multiple discounts available, including for bundling home and auto policies
Cons
  • State Farm offers online quotes, but you must purchase through an agent
  • You may find more specialty policies, like gap insurance, with a competitor

Get a quote now | State Farm review

Farmers: Best for coverage options

Farmers Insurance is Iowa’s second most affordable full coverage insurance, averaging $816 annually. While still affordable, its minimum coverage is more expensive than some, averaging $390 annually. Farmers offers multiple optional coverage options, including loss of use, customized equipment, and a glass deductible buyback.

Pros
  • It offers multiple discounts, including for adding a driver under age 25 to a policy
  • Farmers Insurance has many optional coverages not found with other insurers
Cons
  • You may find cheaper minimum coverage with a competitor
  • It earned only average customer service scores in Iowa, tying with GEICO

Get a quote now | Farmers review

GEICO: Best for multi-driver discounts

GEICO is a more expensive option for full coverage in Iowa, averaging $1,105 annually. However, it offers relatively low minimum coverage, averaging $355 per year. It earned average customer service scores, tying with Farmers Insurance. However, GEICO offers multiple discounts, including giving customers up to 25% in savings for having multiple auto policies.

Pros
  • GEICO has multiple policy options, including mechanical breakdown insurance
  • Its minimum coverage was less expensive than that of some competitors
Cons
  • GEICO only has one insurance agent in Iowa, located in the Des Moines area
  • It earned only average customer service scores

Get a quote now | GEICO review

Allstate: Best for new cars

Allstate is Iowa’s most expensive full coverage carrier, costing a yearly average of $1,355. Despite the higher cost, drivers who want to protect a new car may find Allstate a good option. It offers specific policies for new vehicles, like new car replacement, repair provision coverage, and gap insurance.

Pros
  • Allstate has multiple agents throughout Iowa
  • It has optional policies not found with some carriers, like accident forgiveness and vanishing deductible
Cons
  • You’ll likely find lower prices for full and minimum coverage with a competitor
  • Allstate earned low customer satisfaction scores

Get a quote now | Allstate review

Iowa auto insurance requirements

Like most states, Iowa requires drivers to carry a minimum amount of insurance to drive legally. The minimum amounts are:

  • $20,000 in bodily injury liability for one person in an accident
  • $40,000 in bodily injury liability for two or more people in an accident
  • $15,000 in property damage liability

These minimum amounts are generally low, and drivers should consider having insurance above the minimum limits if they can afford to.

How to choose a car insurance provider in Iowa

As you search for a new car insurance provider, consider the following to ensure you get the best deal:

  • Read reviews: Check websites like the Better Business Bureau to see how a company responds to customer complaints. Ask friends and family members for a recommendation, especially if you’re new to the area.
  • Check financial stability: Visit the AM Best or Standard and Poor’s websites to check each insurance company’s financial rating. As part of your research, confirm the company is licensed in Iowa by checking the Iowa Insurance Division or the National Association of Insurance Commissioners (NAIC).
  • Get quotes: Compare pricing and coverage options from at least three companies against your existing insurance. Ensure the quotes match your current policy types and limits and that you get all the discounts you qualify for. Consider using an insurance broker to help you get multiple quotes without much extra work, but understand the broker’s fees before signing up.

How much does car insurance cost in Iowa?

The average cost of car insurance in Iowa is $1,129 a year for full coverage, compared to the national average of $1,582. Iowa’s minimum coverage costs an average of $320 annually.

Cedar Rapids residents tend to pay the least for their car insurance, an average of $1,265 per year. Sioux City drivers generally pay the most, an annual average of $1,544.

Iowa car insurance rates by city

Multiple factors affect your car insurance rates, including the crime rate where you live. Sioux City drivers pay an average of $1,544 a year for insurance, compared to the state average of $1,129, in part due to a higher crime rate than other parts of the state.

According to NeighborhoodScout, Sioux City residents are more likely to be victims of property crime, including car theft. More accidents or thefts often mean more insurance claims and higher insurance rates.

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

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the best 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 Iowa

What are the minimum car insurance coverage requirements in Iowa?

Iowa's minimum car insurance coverage requirements are $20,000 per person, $40,000 per two or more people in bodily injury liability coverage, and $15,000 in property damage liability. 

How much does car insurance cost in Iowa?

Car insurance in Iowa costs an average of $1,129 a year for full coverage and $320 annually for the state’s minimum coverage amounts.

Which car insurance companies cover Iowa?

Multiple car insurance companies cover Iowa, including State Farm, USAA, Allstate, Nationwide, Farmers, Progressive, and GEICO. 

What is the cheapest car insurance company in Iowa?

The cheapest car insurance company in Iowa is State Farm, which generally costs an average of $750 per year for full coverage and $227 per year for minimum coverage. 

While USAA’s minimum coverage only costs an average of $217 per year, its policies are not available to the general public.

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.