Cheapest car insurance in Iowa for 2024

If you’re in the market for car insurance or looking to switch companies, it helps to know what costs you can expect. Utilizing data from Quadrant Information Services, the insurance editorial team at Bankrate—including licensed agents—analyzed local rates to determine the cheapest car insurance companies in Iowa. In this process, Bankrate found that the annual average cost of full coverage in Iowa was $1,725, while minimum coverage cost a yearly average of $324. Of course, it may be possible to beat the average and find more affordable rates on cheap auto insurance in Iowa.

Key takeaways

• Cheapest company for minimum coverage: Hastings Mutual
• Cheapest company for full coverage: Hastings Mutual
• Cheapest company for drivers with prior incidents: Geico and Hastings Mutual
• Cheapest company for young drivers: Progressive and Donegal

When considering the cheapest car insurance in Iowa, many drivers opt for a liability-only or minimum coverage policy to save on premiums. This option covers the state-required basics, ensuring you're legally protected when driving. However, while it may be more affordable upfront, it's worth noting that minimum coverage may not provide comprehensive protection in all accident scenarios. Among the available options, Hastings Mutual stands out as offering the most competitive rates. For those seeking the cheapest minimum coverage in the state, here are several more options to consider:

Minimum coverage requirements for Iowa drivers

Iowa, like most states, has minimum car insurance limits. All vehicle owners in the state of Iowa must have car insurance with minimum liability limits of:

• $20,000 bodily injury per person
• $40,000 bodily injury per accident
• $15,000 property damage per accident

Insurers are required to offer uninsured motorist coverage and underinsured motorist coverage at $20,000 and $40,000, respectively, but individuals can reject this coverage in writing if they prefer.

Keep in mind that the minimum required coverage only pays for injuries and damages you cause to others. If you need coverage for damages to your own vehicle, you will need to upgrade your car insurance by adding collision and comprehensive insurance. This is referred to as “full coverage.” While minimum coverage insurance can be less expensive than full coverage, most insurance professionals encourage drivers to purchase higher liability limits if they are able to do so. If the damages from an at-fault loss exceed the amount of liability coverage you carry, you will be responsible for paying the difference out of pocket.

For those drivers in Iowa who prioritize comprehensive protection, a full coverage policy is an ideal choice. Unlike the state-mandated minimum coverage, full coverage includes additional benefits such as collision and comprehensive coverage, offering a safety net against accidents, theft, or other unforeseen events. While it tends to be pricier, shopping smartly can yield savings. Hastings Mutual, for instance, stands out with rates that are an impressive — a compelling option for those looking for robust coverage without breaking the bank. However, there are a handful of other companies that offer below average rates:

Driving history plays a significant role in determining car insurance premiums. In Iowa, like in many states, drivers with prior incidents such as accidents, speeding tickets or DUIs can expect to see their rates rise. These incidents often categorize drivers as "high-risk," leading insurers to charge higher premiums to offset potential claims. However, even with a blemished record, there are insurance providers in the state that offer competitive rates. It's crucial for such drivers to shop around, understand their options and find the best balance between coverage and affordability.

• Cheapest car insurance for drivers with a ticket:
• Cheapest car insurance for drivers with an at-fault accident: Hastings Mutual
• Cheapest car insurance for high-risk drivers: Progressive

Cheapest insurance companies for drivers in Iowa with a speeding ticket:

Receiving a speeding ticket conviction is a red flag to insurers that can significantly increase your rates. Still, some companies are more lenient on these infractions than others. Below are the five cheapest car insurance companies in Iowa for drivers who have been convicted of speeding:

Cheapest car insurance for drivers in Iowa with an at-fault accident: Hastings Mutual

Being deemed at fault for an accident can be costly in the short and long term. Causing an auto accident, depending on the insurer and other variables, can severely impact your premiums. How much will depend on the insurer and the size of the claim filed, on top of additional details regarding how the accident occurred. However, some companies penalize these instances less than others. Below are the five cheapest car insurance companies in Iowa for drivers who have been at fault for a car accident:

Cheapest car insurance in Iowa for high-risk drivers: Progressive

Being deemed a high-risk driver typically has the biggest impact on rates, as it tends to result from several infractions. It can also occur when drivers are convicted of a severe infraction, like a DUI. In general, DUIs are considered the most severe high-risk infraction and companies may refuse to cover drivers who have been convicted of a DUI. Below are five of the cheapest car insurance companies in Iowa for high-risk drivers:

In Iowa, young adult drivers often face steeper car insurance premiums compared to their older counterparts. Their limited driving experience combined with statistical data showing a higher likelihood of being involved in accidents means insurance companies often deem them a higher risk. This age group, particularly those in their late teens to early 20s, may encounter rates that reflect these concerns. It's essential for young drivers in Iowa to be aware of this trend, but also to know that with time and a clean driving record, their rates can decrease as they age and gain more driving experience.

• Cheapest car insurance for insuring a teen driver: Progressive
• Cheapest car insurance for teens with a ticket: Hastings Mutual
• Cheapest car insurance for teens with an at-fault accident: Hastings Mutual
• Cheapest car insurance for young drivers with a DUI: Progressive

Cheapest Iowa car insurance for insuring a teen driver: Progressive

Adding a teen driver to your policy can increase your rates quite a bit, although the specifics vary between companies, drivers and policies. Teens and young drivers are generally seen as more inexperienced drivers who represent a higher risk to insurers. To balance this, companies charge higher rates for teens. However, many insurance companies offer student and teen discounts for those who maintain good grades or complete driver education programs. These discounts can be a financial relief for parents and guardians, providing an incentive for young drivers to excel academically and prioritize safe driving habits.

Still, it’s often cheaper to insure a teen on their parents’ policy than to rate them for their own. Below are the five cheapest car insurance companies in Iowa for adding a teen driver to your policy.

Cheapest Iowa car insurance for teens with a ticket: Hastings Mutual

In Iowa, a speeding ticket on a teen driver's record can drastically affect insurance premiums. Insurers perceive these infractions as a sign of recklessness, particularly in younger drivers. Yet, for those searching for budget-friendly options, Hastings Mutual stands out as the most economical choice.

Cheapest Iowa car insurance for teens with an at-fault accident: Hastings Mutual

A teen's at-fault accident can significantly impact car insurance rates. Such incidents underscore the vulnerabilities of young, less experienced drivers, making them a heightened risk in the eyes of insurers. As a result, premiums often rise sharply after such incidents. Despite this, Hastings Mutual emerges again as a beacon of affordability, offering some of the most competitive rates for teens with at-fault accidents in the state.

Cheapest Iowa car insurance for young drivers with a DUI: Progressive

Young drivers caught with a DUI face severe penalties, both legally and in terms of their insurance premiums. As they are already perceived as high-risk due to their age and inexperience, a DUI amplifies this risk perception for insurers. However, Progressive emerges again, offering some of the most affordable rates for young drivers who have been convicted of a DUI.

Car insurance discounts are often one of the simplest ways to save on car insurance in Iowa or elsewhere. While discounts and eligibility differ between companies, there are several common types of car insurance discounts to consider. Below are some of the more commonly available discounts that may help with Iowa car insurance savings:

• Young drivers discounts: Some companies offer discounts for young drivers receiving good grades, whether in high school or college.
• Safe driver discounts: Drivers who maintain a clean driving record for multiple years may be eligible for a discount based on their lack of driving infractions.
• Safety device discounts: Some insurers offer discounts on vehicles that have added safety devices to prevent theft, injury or damage.
• Pay-in-full discounts: Your insurer may offer a discount if you pay up-front for the entire year of premiums.

Bankrate utilizes Quadrant Information Services to analyze the latest rates in April 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate increases filed by insurance companies and are weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. 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 coverage that meets each state’s requirements. Our base profile drivers own a 2022 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.

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

Teens: Rates were determined by adding a 16-year-old teen to a 40-year-old married parent’s policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy. 

Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.