- Cheapest Car Insurance Companies In Iowa
- Cost of Iowa Auto Insurance
- Annual Iowa Car Insurance Estimates By Age
- Annual Iowa Car Insurance Estimates By Gender
- Annual Iowa Car Insurance Estimates For Drivers With Bad Credit
- Annual Iowa Car Insurance Estimates For Bad Drivers
- 6 Best Car Insurance Providers In Iowa
- #1 USAA Car Insurance: Our First Choice
- #2 Shelter Mutual Insurance Company: Runner-Up
- #3 Geico Car Insurance
- #4 State Farm Car Insurance
- #5 American Family Auto Insurance
- #6 Nationwide Car Insurance
- Is Car Insurance Mandatory In Iowa?
- Is Iowa A No-Fault State?
- How Much Does Iowa Car Insurance Cost?
- What To Know About Driving In Iowa
Here are the national and small-town companies that topped our list for Iowa car insurance.
Are you looking for the best car insurance in Iowa? Our review team takes a look at the top six car insurance providers in Iowa, as well as the requirements and cost.
If you are looking to get the best deal on Iowa car insurance, whether you live in Cedar Rapids, Council Bluffs, or Sioux City, we recommend getting auto insurance quotes from multiple providers and comparing them to be sure you’re getting coverage for the best possible price, as many factors can impact your car insurance quote.
To get matched with the best rates for your location and budget, you can use the form below to get car insurance quotes from top-rated providers.
Cheapest Car Insurance Companies In Iowa
According to our cost estimates, State Farm, Nationwide, and IMT Insurance are among the cheapest full-coverage car insurance companies in Iowa.
Car Insurance ProviderAverage Annual Cost EstimateState Farm$740.00Nationwide$871.00IMT Insurance$960Progressive$1,054.00Auto Owners$1,107
Cost of Iowa Auto Insurance
The average premium for Iowa auto insurance was $817 in 2018 when the National Association of Insurance Commissioners (NAIC) issued its most recent insurance cost report.
Here’s a breakdown of average annual premiums for Iowa auto insurance:
Type Of CoverageAverage Annual ExpenditureLiability coverage$349.00Collision coverage$253.00Comprehensive coverage$215Total Cost$817.00
*To calculate average expenditures, NAIC assumed that all insured vehicles would carry liability coverage but not necessarily collision or comprehensive. Total cost per year measures what consumers actually spent.
The average insurance premium across all states for the same year was $1,056. This means that Iowa’s average insurance cost is slightly lower than insurance costs from other states.
Annual Iowa Car Insurance Estimates By Age
A 24-year-old can pay up to $448 more in auto insurance than a 35-year-old in Iowa.
AgeIowa Annual Car Insurance24$1,569.0035$1,121.00
Annual Iowa Car Insurance Estimates By Gender
According to our rate estimates, gender doesn’t affect car insurance costs for Iowa much.
GenderIowa Annual Car InsuranceFemale$1,123.00Male$1,120.00
Annual Iowa Car Insurance Estimates For Drivers With Bad Credit
Drivers with poor credit in Iowa can pay up to 56 percent more than drivers with good credit.
Credit RatingIowa Annual Car InsuranceGood$1,121.00Fair$1,365.00Poor$1,975
Annual Iowa Car Insurance Estimates For Bad Drivers
Car insurance rates in Iowa increase significantly when it comes to speeding tickets, accidents, and DUIs.
Driving RecordIowa Annual Car InsuranceClean$1,121.00Speeding Ticket$1,312.00At-Fault Accident$1,596DUI$1,880.00
6 Best Car Insurance Providers In Iowa
Our review team took a deep dive into the nation’s 30 best insurance companies, considering everything from cost and discounts to customer service and filing claims. From this, we narrowed down the best Iowa car insurance companies that represent everything you need as a Midwestern driver.
Our picks for the top six selections for best car insurance in Iowa combine nationally ranked companies with a few local providers. Each has an office or headquarters in Iowa, received positive reviews from Iowan residents, and balances quality with value.
Best Iowa Car InsuranceMotor1 RatingAverage Cost1. USAA Car Insurance$4.80N/A2. Shelter Mutual Insurance$3.90N/A3. Geico Car Insurance4.6N/A4. State Farm Car Insurance$4.60$7405. American Family Auto Insurance4.2$1,2196. Nationwide Car Insurance4.3$871
*Not all companies were included in our rate estimates for each state. You may also notice that some car insurance companies are listed above those with higher star ratings. This is because our star ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Iowa.
#1 USAA Car Insurance: Our First Choice
When lined up against other top national and Iowa car insurance companies, USAA was the only one that scored 4.8 out of 5.0 stars in our 2021 review. The only drawback is that USAA insurance is only available to active, retired, and separated veterans with a discharge type of “Honorable” and their eligible family members. Eligible family members include:
- Spouses
- Widows/widowers
- Former spouses who joined during marriage
- Children
USAA offers insurance to families in all 50 states. Overall, we found that USAA has affordable car insurance in Iowa with reliable services across the board. It received an A++ from AM Best and topped the charts of several J.D. Power studies in 2020, though it is often removed from the running due to its membership restrictions.
ProsConsAffordable rates and numerous discountsOnly available for military and their familiesGood option for military membersSuperior financial strength rating and A+ rating from the BBB
To learn more about the car insurance provider, check out our review of USAA insurance.
#2 Shelter Mutual Insurance Company: Runner-Up
Though this small insurance agency didn’t make our nationwide comparison, Shelter Mutual’s awards for the region made it stand out in our list of options for car insurance in Iowa. The insurance company shines when it comes to personalized service and offers local branches all over the state of Iowa, both surrounding the cities and scattered throughout more rural areas.
Industry accolades include:
- Rated #1 for “Highest in Customer Satisfaction among Auto Insurers in the Central Region” in 2019, 2018, and 2016 by J.D. Power
- A rating (Excellent) from AM Best for financial stability
- A+ rating from the Better Business Bureau (BBB)
ProsConsSeveral coverage options and discounts availableNot accredited with the BBBA+ rating from the Better Business Bureau
To learn more about the car insurance provider, check out our review of Shelter Mutual car insurance.
#3 Geico Car Insurance
Another company that we recommend for Iowa drivers is Geico. This provider is the second-largest car insurance company in the U.S. and is known for its affordability and smooth claims experience, providing auto insurance to millions of people.
The company has an A++ rating from AM Best, which is the highest rating possible. That means that Geico can meet its financial burden from covering so many policies with ease. Also, Geico has an A+ rating from the BBB, and there are plenty of five-star Geico reviews online from happy customers.
We recommend Geico for Iowa car insurance because of its many extras and discounts, allowing you to personalize your auto insurance to your needs. It is also one of the most affordable car insurance companies, after USAA.
ProsConsSuperior financial strength rating and A+ rating from the BBBAverage quotes experienceMany choices for coverageUsage-based app not available in all statesHigh level of customer satisfactionAvailable in 50 states
To learn more about the car insurance provider, check out our review of Geico auto insurance.
If you feel ready to start comparing your Iowa auto insurance quotes, use the tool below to enter your zip code. Otherwise, continue reading to find out more about the remaining car insurance providers that we recommend for Iowa drivers.
#4 State Farm Car Insurance
Our fourth choice for car insurance in Iowa is State Farm Insurance. We recommend State Farm if you are looking to bundle your auto insurance policy with life or home insurance to save money. The company also offers insurance for cars, motorcycles, boats, ATVs, motorhomes, and more.
State Farm offers a good selection of discounts, which is very appealing for budget-conscious drivers. Discounts include:
- Safe driving discounts: You can get discounts for having a clean driving record, no accidents or moving violations for three years, completing a defensive driving course, putting your kids through driver’s ed, and being a good student away at school.
- Safe vehicle discounts: With State Farm, you can get discounts for having a modern vehicle with safety features and anti-theft mechanisms. However, at a certain point, high-tech safety features may cost more to repair and can increase overall rates.
- Loyalty discounts: You can also get up to 20 percent off by insuring multiple vehicles, and 17 percent off by bundling auto with another policy like homeowners insurance or life insurance.
State Farm insurance reviews are also largely positive. Overall, State Farm auto insurance customers are happy with their coverage and enjoy affordable rates.
ProsConsComprehensive coverage offerings and extensive selection of discountsReported errors with autopayExtensive selection of discounts for teens and studentsNot taking new customers in Massachusetts or Rhode IslandAvailable in 48 statesHigher rates than some competitorsEasy online quotes process and positive customer reviewsSuperior financial strength rating and A+ rating from the BBB
To learn more about the car insurance provider, check out our review of State Farm auto insurance.
#5 American Family Auto Insurance
Another company that we recommend of Iowa car insurance is American Family Insurance. This insurance provider is a good option for parents with teenagers who are starting to drive, for seniors, and for people who are looking to bundle multiple policies like homeowners and auto insurance. The company offers several discounts, many of which are facilitated through the KnowYourDrive program. The program allows you to download an app that will keep track of your driving habits on which your discounts are then based.
In terms of customer satisfaction with the claims process, American Family ranked highest in the Southwest region in the 2021 J.D. Power Auto Insurance Study. It also ranked third among mid-size insurers in the U.S. Insurance Shopping Study.
ProsConsIdeal for young drivers or people who want to bundle multiple policiesLimited locationsKnown for low ratesNegative reviews about claims processSeveral discounts availableMyAmFam app to manage your account
To learn more about the car insurance provider, check out our review of American Family auto insurance.
#6 Nationwide Car Insurance
Though Nationwide car insurance does not top the charts for cost or customer service, we are impressed by its comprehensive coverage and extensive discount availability. It is well suited for tech-savvy drivers, as it has an extensive online portal that gives you access to everything from quotes to paying your bills, filing a claim, and requesting roadside assistance. The company also has programs geared towards safe drivers, such as Nationwide’s SmartRide® program, which gives drivers a discount after they allow the company to track their safe driving practices for a set period of time.
AM Best, a credit rating agency for insurance companies, gave Nationwide Mutual Insurance an A+ (Superior) rating for financial strength. The BBB rates Nationwide at A+, too. Nationwide has nearly 250 customer complaints logged with the BBB in the last three years, but for a company of its size, that number isn’t unusual.
ProsConsSuperior financial strength rating and A+ rating from the BBBMixed customer reviews depending on locationMany choices for coverage available in 47 statesExpensiveUsage-based insurance optionsDifficult quotes process
To learn more about the car insurance provider, check out our review of Nationwide car insurance.
Enter your zip code below to get started comparing cheap car insurance rates by Iowa’s best car insurance providers.
Is Car Insurance Mandatory In Iowa?
Auto insurance mandates vary state-by-state. Only two states – New Hampshire and Virginia – don’t require auto insurance, while others have a law requiring minimum coverage. Iowa requires liability insurance coverage of 20/40/15, which we’ve broken down below. Drivers also must carry uninsured/underinsured motorist coverage unless they reject the coverage in writing.
- Bodily injury liability (BI): $20,000 in bodily injury per person and $40,000 in bodily injury per accident
- Property damage liability (PD): $15,000 in property damage per accident
- Uninsured/underinsured motorist bodily injury: $20,000 per person and $40,000 per accident
Keep in mind that these coverages are only the minimum required in the state. On one hand, this means you have more flexibility to customize your Iowa auto insurance policy and often at more competitive prices than other states. However, in addition to the minimums, we recommend some level of collision, comprehensive, and medical coverage.
Is Iowa A No-Fault State?
No, Iowa is not a no-fault state. This means that if you cause an accident in Iowa – such as rear-ending the car in front of you – your car insurance must cover the damages and related injuries for both yourself and the other driver.
How Much Does Iowa Car Insurance Cost?
According to the Insurance Information Institute (III), Iowa has the second lowest average car insurance rates in the country, beat out only by Idaho. The average expenditure for car insurance in Iowa was only $628.10 per year, far below the national average of $935.80.
The study by III clarifies that state differences often come down to differences in wealth by region. Residents of more affluent states are more likely to purchase new cars, thus incurring higher car insurance rates. Other factors include the average number of highway miles driven and the density of urban areas.
What To Know About Driving In Iowa
Iowa is known for its wide-open spaces where one can take to the highway and explore small country towns. However, the average commute time for an Iowa worker is only about 18 minutes, lower than the national average. As a North-Midwestern state, Iowa sees its fair share of snow each year, with an average of 32.4 inches throughout its winter season according to Iowa-based newspaper The Gazette. Icy roads and poor visibility are other strong reasons to purchase higher than the state minimum for car insurance in Iowa.
A report published in the Des Moines Register acknowledged an increase in Iowa traffic accidents in 2018 compared to earlier years. On the flip side, however, car-related fatalities dropped overall.
The best auto insurance in Iowa should cover all your local needs while remaining affordable and transparent. We found USAA – if you are eligible to join – is the best bet to check all these boxes. The company’s extensive discounts make it one of the cheapest auto insurances in Iowa, while its history of nearly 100 years in business means it knows how to take care of its customers. Alternatively, for those who prefer a local option, Shelter Insurance provides great coverage and customer service.
Enter your zip code in the tool below to collect and compare car insurance quotes from providers available in your state:
Methodology
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
- Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
- Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
- Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
- Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.
Keyword: Best Car Insurance: Iowa (2022)