Iowa Car Insurance
Iowa drivers are required by law to carry minimum car liability insurance of $20,000 for one person, $40,000 for all parties in an accident for bodily injury liability and $15,000 of minimum coverage for property damage liability. This amount of coverage may be more simply stated on an auto insurance policy as 20/40/15.
UIM Coverage
Although it is not required by law, purchasing Uninsured/Underinsured Motorist ("UIM") coverage is a wise decision. UIM is very important coverage that applies in the event the at–fault driver in an accident is uninsured or does not have enough insurance to pay for the damages sustained by the other driver(s) or passengers in the accident. While a total of $40,000 for bodily injury damages may seem like a lot of money, it can be used up quickly in a serious injury accident or accident involving multiple parties.
For example, if an Iowa driver in an accident had 20/40 UIM coverage, he or she would be able make a UIM claim with their auto insurance company and when applicable, be able to receive up to $20,000 for their own bodily injury damages. A UIM claim would be valid if the at fault driver was uninsured or the UIM insured sustained bodily injury damages beyond the limits of the at fault driver's policy. Per the UIM policy limits, the insurer would only pay up to $40,000 for all UIM bodily injury claims stemming from the accident.
PIP Coverage
Personal Injury Protection ("PIP") is no fault coverage. It is also not required by Iowa law. However, it is an important type of auto insurance coverage. PIP pays for "reasonable and necessary" medical bills for the insured driver and their passengers in an accident. PIP is the primary form of medical coverage for an auto accident. If medical expenses exhaust the PIP limits, the insured can then bill remaining amounts to their health insurer. Iowa drivers should carefully review their auto insurance policy to understand its terms, coverage amounts, and limitations.
Collision and Comprehensive Coverage
Other important available insurance coverage types in Iowa are Collision and Comprehensive coverage. These coverage types are not required by law but can be very important in the event of an accident. Also, many financial institutions require vehicle owners to purchase collision and comprehensive coverage as a condition of their loans.
Collision pays for vehicle repairs or vehicle replacement value following a collision regardless of fault. Comprehensive coverage pays for all vehicle repair damage or replacement value for incidents other than a collision such as the tree falling on a car or the car being stolen. There are minimum deductible limits for these collision and comprehensive such as $500, but drivers can also raise their deductible amounts to lower their premiums.
Keep Your Insurance Current
It is very important that Iowa drivers do not allow their auto insurance policies to lapse. Each day, hundreds of Iowa drivers are involved in auto accidents. Uninsured drivers in Iowa have to pay fines and may be forced to comply with state financial responsibility laws, which require them to purchase expensive SR–22 Insurance. Uninsured or underinsured drivers can also be held personally responsible for all damages caused in an accident. Driving without car insurance in Iowa is extremely risky and can lead to financial ruin.
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