Iowa auto insurance laws are pretty much the same as the car insurance laws of other States of the U.S. However, statistics claim that Iowa has the lowest car insurance rates in the U.S. Iowa follows the Tort System according to which the driver at fault and his insurance company are accountable for all the expenses (medical and auto repairs). To save its citizens from the costly bills they might face when they cause an accident, the State of Iowa has made the auto liability insurance compulsory.

The mandatory auto liability insurance of Iowa states that each driver should carry a minimum coverage of $ 20,000 if a single person is hurt or dies in an accident. The bodily injury liability extends to $ 40,000 for two or more occupants in the car at the time of accident. The property damage liability has the least level fixed at $ 15,000 in case you harm a person’s property. This also includes the cost of repairing the other vehicle involved in the accident.

Other coverage offered by the Iowa auto insurance are Comprehensive coverage which is not compulsory but is advisable if you are driving a leased vehicle. It is also useful in the event that it pays for the damages for your car as your car is not covered by the compulsory auto liability coverage. Another optional coverage is the uninsured motorist and underinsured motorist coverage. It protects you from the expenses you might face if you are hit by a driver with no insurance or with insufficient insurance.

Although the rates of insurance are quite low in Iowa, you can still get better rates if you avail the discounts offered by the insurance companies. These discounts depend mainly upon your driving record, age, the safety features attached in your car as well as the make and model of your car and the mileage.

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Filed under: Auto Insurance By States

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