Iowa Auto Insurance Requirements

The Iowa State laws governing auto insurance require you to carry a minimum amount of liability insurance. You will need to provide proof that you possess the minimum liability auto insurance to pay for injuries to another person or damages to their property in case of an accident.

The Iowa State Department of Revenue and the Iowa State Department of Insurance are the government agencies you need to present your proof of insurance to. You may also need to contact the Motor Vehicle Division. In order to register your car in Iowa, you must prove that you have the proper liability auto insurance coverage. All eligible drivers in a household must be covered under a liability auto insurance policy.

Mandatory liability auto insurance is also required on rental vehicles by the state of Iowa. Your personal auto insurance policy generally covers rental cars but if it does not provide coverage for rental vehicles, you may want to check with the credit card that you used to rent the car. Credit card companies sometimes cover insurance on rental cars. If neither option applies to your situation, you must purchase the minimum liability insurance from the rental company. All rental car agencies are required to provide the state minimum levels. This will run $7.00 to $14.00 per day. If you have other coverage and waive the rental company’s policy, you will need to sign a CDW. Keep the rental agreement in the vehicle through out the term of the agreement. This will be your proof of insurance in case of an accident or traffic stop.

Iowa is a Torte state. This means that the individual who is at fault in an accident may be sued by those injured in the accident, or families of those killed in the accident, for pain, suffering, and lost wages. The individual who caused the accident will also be held responsible for all medical expenses connected to the accident. There are no limits on law suites filed in Iowa.

You must have proof of insurance, or proof of cash to cover the damages with you at all times. Iowa’s mandatory minimum liability auto insurance limits are $20,000.00 per individual injury or death, $40,000.00 for all injured persons, and $15,000.00 for damage to property. Other forms of accident responsibility are a waiver form from the other driver or drivers involved in the accident, a court release from responsibility for the accident, or an installment plan for paying the damages. Auto insurance policies purchased in Iowa will include the mandatory liability minimum insurance limits. However, the state of Iowa does not require drivers to carry underinsured or uninsured auto insurance coverage but the insurance company must offer that protection to you when you apply for a policy with their company. Likewise, you do not have to carry collision and comprehensive insurance on your vehicle but the company must offer you that option. If your vehicle is operated without your permission, or you and your vehicle are the only damages caused by the accident, you do not have to produce proof of financial responsibility.



Iowa requires motorists to be covered by the mandatory liability auto insurance policy at all times. You will not be allowed to register your vehicle without proof of insurance. Should you become involved in an accident or be stopped for a traffic violation and you do not have the required liability policy, you will be cited as an uninsured motorist. Even if the accident is not your fault, you can still be cited for lacking proof of insurance. This will result in fines and points being added to your driving record. The penalties will increase with repeat offenses. The exemptions to the mandatory liability insurance are off highway vehicles and non operational non registered vehicles. Individuals who are out of state seasonally or in the military may also receive an exemption.

Lack of proof can result in the loss of your registration and plates as well as a suspension of your license. To get your license back, you will have to prove that you can pay for damages in the case of an accident. This will be in the form of a liability insurance policy in the amount of $55,000.00 or sending the same amount to the Iowa Office of Driver Services in the form of a security, cashier’s check, certified check, cash or surety bond. This money or policy must remain in place for two years.



You must produce proof of insurance upon request by the authorities. This proof needs to include the name of the insurance company, the dates of coverage, and the amount of liability coverage. It also needs to include the policy number, VIN number of the vehicles covered, the make and model of the vehicles as well as the name of the policy holder. The auto insurance needs to be authorized by a qualified auto insurance company. It can be an insurance card from the company, a form from the state proving you have funds on deposit with the state, or a bill of sale for a recently purchased vehicle along with proof that the former vehicle was insured.

Remember that you may need your proof of minimum liability auto insurance at any time. You will definitely need it at the time of registering your car, in the case of involvement in an accident either as the cause of the accident or the victim of the accident, or if you should be stopped for a traffic violation.