Average cost of car insurance in Iowa for 2021

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The average cost of car insurance in Iowa is $1,260 for a full coverage policy, while the local average for minimum coverage is $252, according to Bankrate’s 2021 study of quoted annual premiums. That breaks down to $105 and $21 per month, respectively. Learning the ins and outs of how much car insurance costs in your area can help you to avoid overpaying. With a bit of guidance and research, it may be possible to find cheaper car insurance that offers similar coverage.

The first step is to understand that averages can hide a lot of variances. With so many factors going into how policy rates are made, it’s nearly impossible to understand your costs without learning a bit about how providers make these calls. From age and driving record to the location of your home address, the nuances of auto insurance rates can be complicated.

How much does car insurance cost in Iowa?

While location does matter, at both the state and city level, many other variables also factor into the cost of Iowa car insurance rates. Even so, it’s helpful to know the average cost in your state so you can control for it when considering these other variables.

The average cost of full coverage for Iowa drivers is $1,260 per year and $252 per year for minimum coverage. On the other hand, the annual average for the U.S. is $1,674 for full coverage auto insurance, showing that average car insurance rates in Iowa are relatively inexpensive when compared to the national average.

Beyond location, some of the top variables for impacting Iowa auto insurance rates are age, driving record, insurance score, insurance company and vehicle. Every insurance provider does things differently, but most include these factors in their rate calculations. The logic behind many of these factors is that they can help providers predict how expensive a customer might be to insure. Insurance providers use this data to help them figure out how much money they are likely to pay out in claims for a customer. This estimate is then used to help them determine rates.

Iowa car insurance rates by company

It’s useful to know the overall cost averages for your state. Still, a breakdown by company can help to fill the picture in further. Even with all else held equal—the same customer, vehicle, and coverage types and amounts—every company is likely to offer at least a slightly different quote. Below you can see what the average costs for car insurance in Iowa are by insurance provider.

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Allstate $473 $2,135
American Family $405 $1,124
Auto-Owners $230 $1,283
Donegal $270 $1,595
Geico $223 $1,253
Grange $190 $1,046
Grinnell Mutual $289 $1,671
Hastings Mutual $221 $858
IMT $207 $1,400
Iowa Farm Bureau $212 $1,082
Pekin $177 $872
Progressive $256 $1,139
State Farm $241 $1,041
USAA $208 $1,026
West Bend $191 $888
Western National $165 $1,559

Iowa car insurance rates by city

Average costs can vary significantly between cities within the state. For instance, Council Bluffs has an average that is 23% greater than the state average. In comparison, Ames has an average that is -16% below the state average. This chart compares the top 20 cities by population.

City Average annual premium for full coverage % increase from state average annual premium
Des Moines $1,216 -2%
Cedar Rapids $1,143 -8%
Davenport $1,213 -3%
Sioux City $1,332 7%
Iowa City $1,065 -15%
Waterloo $1,196 -4%
Council Bluffs $1,534 23%
Dubuque $1,150 -8%
Ames $1,048 -16%
West Des Moines $1,081 -13%
Ankeny $1,071 -14%
Urbandale $1,100 -12%
Cedar Falls $1,160 -7%
Marion $1,122 -10%
Bettendorf $1,167 -6%
Mason City $1,109 -11%
Marshalltown $1,164 -7%
Clinton $1,193 -4%
Ottumwa $1,182 -6%
Burlington $1,166 -7%

Iowa car insurance rates by age

Age is one of the more substantial variables when it comes to how insurance companies calculate auto rates. Different age demographics have significantly different chances of experiencing an auto accident, filing a claim, or receiving a ticket. Providers use this information to help them determine rates. As a result, the various age groups tend to have noticeably different average premiums.

Age Average annual premium in Iowa
Age 16* $1,537
Age 18* $3,356
Age 20* $2,653
Age 25 $1,551
Age 30 $1,345
Age 40 $1,260
Age 50 $1,149
Age 60 $1,102
Age 70 $1,181

*16-year-old calculated on parent’s policy disclosure; 18- and 20-year-old are renters

Iowa car insurance rates by driving record

Insurers use statistics to help calculate rates, based mainly on how expensive a customer is estimated to be to insure. Driving records have a strong statistical correlation with future performances and incidents, or the lack thereof. Therefore, even one traffic offense can increase your rates by a notable amount.

Driving incident Average annual full coverage premium in Iowa % increase of average annual premium
Speeding ticket $1,531 21%
Accident $1,731 37%
DUI $2,334 85%

How to save on car insurance in Iowa

One of the most recommended ways to save money on auto insurance is to pursue discounts. Many insurance providers offer a variety of discounts that can help to reduce rates. In general, these discounts will be things that make you a safer, less financially risky driver. The less likely you are to be involved in a traffic violation, the more likely you are (generally) to qualify for discounts. Discounts aren’t the only way, though. When trying to find the best cheap car insurance in Iowa, every bit of savings can help:

  • Discounts: One of the most convenient ways to save on car insurance is to pursue discounts offered by your insurance provider. These discounts can range from safe driving benefits to paperless billings discounts to bundled policies and more. In general, the more discounts you can qualify for, the more money you can save on premiums.
  • Lower coverages: It can be a delicate balance, but one way to lower your premiums is to reduce your coverage limits. First, of course, you have to maintain at least the state minimums. Still, otherwise, it is generally at the customer’s discretion.
  • Higher deductibles: Raising your deductible will reduce your rates, but it comes at a risk. A higher deductible means paying more money out of pocket before your insurance policy will help with costs.
  • Credit score: Credit scores have an indirect but notable impact on auto insurance rates. This impact is because insurance providers use credit scores when calculating insurance scores. These values are used to help them determine how expensive a given customer might be to insure. This estimate, in turn, helps inform how much the provider will charge that customer for insurance.

Frequently asked questions

How much car insurance do I need in Iowa?

Most states require specific minimum amounts of auto insurance for all drivers. In Iowa, these legal requirements are $20,000 bodily injury liability per person, $40,000 bodily injury liability per accident, and $15,000 property damage liability per accident.

What is the best car insurance in Iowa?

The best car insurance is often different depending on the driver and the circumstances. Policies and rates are individualized enough that each person can have a different experience, even when purchasing the same type of insurance from the same company. Consider comparing providers from the best car insurance companies for 2021.

Is it worth moving to save on car insurance?

Generally, no, it will not be. There are some situations, perhaps where it might make sense, however. For instance, if you currently rent in a city and your ZIP code has significantly more expensive rates than another ZIPs code in that city. Suppose you can find a rental that you like in these cheaper ZIP codes, and the rent cost is equivalent or more affordable. In that case, it might be reasonable to consider moving when your lease is up. For the most part, though, the savings gained will rarely offset the costs accrued by moving.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner.

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

Written by
Joshua Cox-Steib
Joshua Cox-Steib has two years of experience in writing for insurance domains such as Bankrate.com, Coverage.com, Thesimpledollar.com, Reviews.com, and more. His work has also been featured on such sites as Msn.com and BBB.org. His insurance writing career has spanned across multiple product lines, with a primary focus on auto insurance, life insurance, and home insurance.
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