Best car insurance in Iowa for 2023

Best car insurance companies in Iowa

The average cost of full coverage car insurance in Iowa is $1,315 per year, while minimum coverage averages $223 per year. Although these are far lower than the national averages of $2,014 and $622 for full and minimum coverage, respectively, many drivers may still be looking to save on their Iowa car insurance premiums. 

We began our search for the best car insurance companies in Iowa by analyzing average rate data from Quadrant Information Services for dozens of carriers writing policies in the Hawkeye State. From there, we rounded out our list of top companies in Iowa by looking at customer service scores from J.D Power, financial strength ratings from AM Best, coverage options, discount availability and digital tools. 

These factors and more were translated into a Bankrate Score for each carrier. With a maximum of 5 points, the Bankrate Score may give you an overview of how well a carrier may be able to meet your insurance needs. Carriers with lower scores fell short in one or more of our rating categories.

How Bankrate chose the best car insurance companies in Iowa

Bankrate's insurance editorial team understands that price isn't the only factor for many Iowa drivers looking for the best auto insurance. That's why our Bankrate Scoring model takes into account many metrics beyond just price. Each Score, out of a possible 5 points, accounts for coverage options, discounts, customer service, financial strength and more. We hope you can use these Scores to narrow down your search for the best car insurance company for you.

How much is car insurance in Iowa?

Drivers in Iowa pay, on average, significantly less than the average driver in the United States. National average premiums are $2,014 for full coverage and $622 for minimum coverage. In Iowa, average car insurance rates are $1,315 for full coverage and $223 for minimum coverage. However, your personal premium may vary from these averages based on your personal rating factors like your age, vehicle type, driving record and ZIP code. 

Average rates in Iowa are also cheaper than the nearby states of Nebraska and Illinois. Average annual full coverage rates in Nebraska and Illinois are $1,624 and $1,806, respectively. Large swaths of Iowa are rural and sparsely populated, which may lower the risk of collisions and could be a factor in the state’s low cost of insurance.

How to find the best car insurance in Iowa

Evaluating your needs and rating factors may help you find the best car insurance in Iowa. Since each individual brings a unique mix of rating factors and priorities to their car insurance search, the best car insurance company for your neighbor may not be the best car insurance company for you. 

Consider minimum insurance requirements in Iowa

Like almost all other states, Iowa requires mandatory minimum levels of auto insurance. If you live in Iowa, you must hold the minimum liability insurance coverage. This includes liability coverage for both bodily injury and property damage. While minimum coverage may be the most affordable option, most insurance professionals recommend carrying full coverage car insurance if you can afford to do so. Minimum coverage does not offer coverage for your own vehicle and may not be enough to prevent substantial out-of-pocket costs if you cause an accident. 

Consider lender requirements

If your car is loaned or leased, your financial institution may require that you carry full coverage to protect their financial interest in your vehicle. You might also want to consider gap insurance, which would pay the difference between the value of your vehicle and your remaining loan balance if the vehicle were to be totaled or stolen and nonrecoverable. 

Consider your individual needs

Ultimately, your insurance company of choice will vary based on your preferences and circumstances. You may be looking for the cheapest premium possible, or perhaps you are more interested in high customer service scores or specific coverage options. Understanding what you want from an insurance company might help you to narrow your options. Once you have chosen companies that fit your needs, you can request quotes from each company to compare premiums. 

Frequently asked questions