If you are looking for Iowa car insurance quotes, there are some important facts to note. Iowa is one of the few states that does not force by law, drivers to be insured. However, drivers must prove they can be financially responsible for an accident that causes personal injury or property damage. Not only must drivers prove this, the owner of the vehicle must also be able to prove financial responsibility. The most practical way to do this is to carry liability insurance.
If you do not carry insurance, you will need to pay all expenses that stem from your accident to the Iowa Department of Insurance to be given to the injured or damaged party. Or, you must get a release from the other person saying you don't owe them or you have agreed to pay them in installments. Considering the large amount of money that many Iowa car insurance settlements accrue, including lawyer fees and medical expenses, having insurance is the most logical choice.
If you choose to carry liability insurance in Iowa, there are some minimum requirements that must be met by state law. Bodily injury liability in the amount of $20,000 for one person and $40,000 for more than one person is the amount that must be carried. In addition to this, $15,000 in property damage liability must be carried.
According to the Iowa Department of Transportation, statistically speaking, Iowa is a great place to live when it comes to low accident rates and cheap car insurance. In 2008, the average yearly expense for auto insurance was $817 while in Iowa it was $536. In one study, Iowa rank 50th out of 50 states making it the state with the cheapest auto insurance rates.
One important item to note is this: just because you are insured for the Iowa minimum amount of insurance doesn't mean it will cover all your expenses. Having additional insurance is a good idea and may be required if you have a loan on your vehicle. Some of the other types of insurance that you may need are collision, comprehensive, and underinsured/ uninsured motorist coverage.
Collision insurance will give you extra protection if your vehicle is damaged in an accident that is your fault. A basic collision policy will cover repair expenses or give you money, if your car is beyond reasonable repair. Comprehensive insurance covers what collision does but also covers any damage to your vehicle from a natural disaster, weather event, or an unknown person.
Underinsured/uninsured motorist coverage will provide for you should a person without insurance or without enough insurance be responsible for an accident. If their Iowa car insurance coverage is not enough, your coverage would kick in and make up some or all of the difference. Now that you know the basics of Iowa car insurance, you can begin looking for rate quotes - and start saving money on auto insurance today.