Average cost of car insurance in Iowa for 2023

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How much is car insurance in Iowa?

The average cost of car insurance in Iowa is $223 per year for the state minimum required coverage and $1,315 per year for full coverage. However, costs vary based on a number of factors, including the company you choose, your city, your age and your driving record. Bankrate analyzed average rates, obtained from Quadrant Information Services, for several different types of drivers. Our research might help you understand what a competitive rate looks like for your situation.

Iowa car insurance rates by city

In addition to your state, the city you live in affects your auto premium. Iowa car insurance rates vary based on city due to different areas having different risks, different likelihoods of accidents, and different costs of living, all of which affect claims costs. In areas where claims are more likely or more expensive, like urban areas, rates are likely to be higher.

Average cost of car insurance by age and gender in Iowa

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. The average car insurance rates in Iowa by age, shown in the table below, are representative of drivers on their own policy (with the exception of the 16-year-old driver, who is rated on a policy with a married couple and one vehicle).

Cost considerations for young drivers in Iowa

Young drivers are expensive to insure, but staying on their parents’ policy can have a tremendous impact. Generally, insurers will allow a young driver to be rated on their parents’ policy as long as they are still a household member. Once a young driver has moved out and established their own household (with the exception of going to college), it’s usually time to start a separate policy, but be prepared for the cost difference. 18-year-olds pay nearly $1,200 more on their own policy versus on their parents’ policy, for example.

*16- and 17-year-old drivers must be on their parents’ policy.

How does driving record impact the cost of car insurance in Iowa?

Driving records have a strong statistical correlation with driving behaviors, which can predict your risk of causing an accident in the future. Therefore, even one traffic offense can increase your rates by a notable amount. A speeding ticket conviction has the least impact on the average cost of car insurance in Iowa, with an annual increase of 19 percent for full coverage, while a single DUI conviction raises full coverage premiums by an average of 87 percent per year.

Car insurance rates in Iowa by credit tier

Credit is also a contributor to the average car insurance cost in Iowa. Statistically, drivers with poor credit are more likely to file claims, which means that they are a higher risk to insurers. Insurance companies charge higher rates for lower credit tiers to compensate. In Iowa, there’s just over a $1,200 difference in average full coverage costs between drivers with poor credit and drivers with excellent credit. 

Iowa car insurance rates by vehicle type

Finally, our team took a look at average car insurance rates for different vehicles. If you’re wondering “How much is car insurance in Iowa?” you probably need to consider the type of vehicle you need to insure. Vehicles that cost more to repair or replace, or that are more likely to get into an accident, will likely have higher average rates. For example, our research found that a BMW 330i costs $688 more per year to insure with full coverage than a Ford F-150.

How to save on car insurance in Iowa

Iowa drivers already enjoy lower-than-average rates for car insurance when compared to the national costs, but there are ways to lower your premium even more. If you want to save money on car insurance, you might consider:

• Applying 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 might save on premiums.
• Maintain a clean driving record: Although it won’t lower your rates immediately, practicing safe driving is one of the best strategies to keep your costs down in the long run. Driving incidents result in costly surcharges on your policy and can preclude you from good or safe driver discounts.
• Increase your deductibles: A full coverage car insurance policy has two deductibles: one for comprehensive and one for collision. Raising your deductibles will usually reduce your rates, but it comes at a risk. Higher deductibles mean paying more money out of pocket before your insurance policy will help with costs.
• Improve your 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. As we’ve seen, lower credit tiers generally result in higher premiums. If you can improve your credit, you may see a reduction in your car insurance premium. 

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