Compulsory Car Insurance for Iowa Drivers

Automobile accidents often lead to vehicle damage, and vehicle damage has the potential to be expensive. If an Iowa motorist is responsible for damages or injuries, state law requires that the offending driver be able to cover the losses. Although the Hawkeye State does not have compulsory car insurance laws, drivers are still required to prove they can be financial responsible if necessary. Residents have the option of filing a surety bond, cash, or security that is equal to $55,000 among other options, though the majority of motorists in Iowa choose to purchase automobile coverage. When someone buys a policy, however, there are certain conditions that must be met to be classified as financially responsible.

Of the 4,141,397 registered vehicles in the Hawkeye State as of 2010, the majority of them are covered with Iowa auto insurance that meets specific minimum requirements. Policyholders must carry bodily injury liability with limits of $20,000 for one person and $40,000 for two people or more in a single accident. Property damage liability is also required with a minimum limit of $15,000. Coverage providers must offer residents the option of purchasing uninsured/underinsured motorist protection, but drivers can choose to reject this offer in writing. With an average daily traffic count on the Interstate Highway System being 21,734 automobiles in rural areas and 45,726 automobiles in municipal areas as of 2009, motorists may want to consider purchasing a policy that includes more than just basic liability.