Iowa Car Insurance: The Complete Beginner’s Guide

An insurance agent can swamp a beginning driver down with details without ever making it clear what it is they truly need versus what the salesman is trying to sell them. While this is an excellent strategy for the agent it is not so good for the consumer. There are certain pieces of information every consumer should know before they commit themselves to an auto insurance policy.

• Every state’s requirements are different. If you have recently jumped across state lines do not assume that your new home carries with it the same insurance requirements as your old one.
• Information about state specific guidelines can be obtained from the Iowa Insurance Division in Des Moines, either by calling 877-955-1212 or visiting their website at http://www.iid.state.ia.us/contact_us/index.asp.
• IA requires that all of its licensed drivers carry a liability policy on their vehicle. Liability is there to ensure that in the event you are responsible for an accident the often exorbitant medical costs incurred by the other motorists involved in the accident and property damage costs are covered.
• Liability minimum requirements in Iowa are as follows: twenty thousand dollars for bodily injury suffered by a single occupant, forty thousand dollars for the combined costs of the treatment of bodily injury sustained by all of the occupants of a car and fifteen thousand dollars to pay for the property damage resulting from the accident (this includes damage to the other vehicle involved)
• Comprehensive insurance is not required by the state but may be required if the vehicle still has a lien on it. Comprehensive/collision insurance will pay for repairs to the vehicle of the insured in the event that they are responsible for an accident (liability will only cover the costs of the other driver). In the event that a vehicle is beyond repair the owner will be reimbursed the vehicle’s full blue book value.
• Although it is not required it is recommended that all motorists carry uninsured/underinsured motorist insurance. This will provide for medical expenses and the repairs to the insured’s vehicle in the event that they are hit by a driver who does not carry a liability policy (not all states require this) or whose liability is insufficient.