Iowa Car Insurance Laws


Iowa state flagIn Iowa, all motorists must obey specific laws set by The Financial and Safety Responsibility Act that require drivers to have liability coverage with bodily injury limits of $20,000 for a single person, and $40,000 for two people or more. This also includes property damage liability with a limit of $15,000. This typically ensures that a driver who is at-fault for a collision can pay for many of the resulting damages or injuries for which they are responsible.

Motorists may wish to note that instead of purchasing Iowa auto insurance policies, vehicle owners can also file a surety bond equal to $55,000 to prove that they can be financial responsible. It is important for drivers to note that failure to remain adequately insured while driving could result in a driver’s license suspension for a year, or vehicle impoundment.

Vehicle owners should be aware that the consequences for driving uninsured apply not only to the offending driver, but also to the vehicle owner. If an individual’s automobile is involved in an accident, the owner must be able to provide proof of insurance even if they were not driving. In the event that an individual has had their license suspended, they must be able to provide future evidence of being adequately insured, and doing so immediately may assist a motorist in avoiding a vehicle registration suspension. To demonstrate that future coverage has been purchased the offending driver typically has to submit an Insurance Coverage Form SR-22 to the Office of Driver Services which demonstrates that a policy has been purchased and will remain in place for a period of three years.

An additional way that an IA vehicle owner can lose their driving privileges is to operate a motor vehicle while under the influence. According to state OWI laws (operating while intoxicated), in addition to implied consent laws, drivers must agree to a blood, breath, and/or urine test to determine if the motorist in question is under the influence of alcohol or drugs if an officer of the law determines such tests are reasonably necessary. If found to be under the influence, first time offenders could face a license revocation of up to 180 days, and second time offenders could have this time extended to a year.

United States flag shaped as IowaIt should also be noted that having ones license revoked for an extended period of time for driving while under the influence may make it more difficult to acquire cheap car insurance in the Hawkeye State. The presence of such an offense usually signals to insurers that the motorist in question has a higher risk of being involved in future incidences, and may consequently experience steeper rates. To avoid these consequences and those associated with driving while uninsured, Iowa’s 2,145,333 licensed drivers are encouraged to not only meet state financial responsibility requirements, but also strive to become or remain responsible drivers.