Iowa Auto Insurance
Requirements of Motorists under IA State Law
Everyone has an opinion about insurance. Some people
believe it is a conspiracy to con hardworking people out
of money. You can not imagine how much you need insurance
until you something happens that you were not prepared
Weather its a car accident, a flu, a fire,or a theft
these things happen all the time. You never know if or
when something might happen to you. Don't be caught off
guard by life's unpredictable events.
There are certain "requirements" that are applicable
to each state and varies accordingly. We have attempted
to compile all of the relevant information in to this
single resource to help visitors know what is expected
of them in regards to insurance.
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Car Insurance Requirements
Coverage Minimum - 20/40/15
Coverage Explanation - Car insurance
coverage in Iowa must provide a minimum of $20,000 for
injury liability for one person in an accident, $40,000
for all injuries in an accident, and $15,000 for property
damage in an accident.
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Important Iowa Auto
1. Under IA law, you must be consider financially responsible.
This requirement can be met by filing proof of at least
$55,000 insurance coverage. Otherwise, you must post security
of $55,000 by certified check, cashier's check, money
order, or surety bond. This filing must be maintained
for two years.
However, insurance in Iowa is not compulsory.
(see notes in "Important to Note")
2. Both owner and driver of the vehicles involved in
an accident must prove their financial responsibility.
This means if you owned the car involved in an accident
but were not driving it at the time, you would still have
to show financial responsibility by using one of the ways
already discussed. (see exemptions below)
Important to Note:
Proof of financial responsibility after an accident isn't
needed in these cases:
- Your car was legally stopped, standing, or parked;
- Your vehicle was driven without your permission;
- No damage occurred to any person or property other
The Financial & Safety Responsibility Act protects
you from the financially unsound and reckless driver.
It does this by:
- Suspending the operating and registration privileges
of a driver or owner who hasn't been able to show immediate
financial responsibility following an accident; and,
- By requiring anyone whose driver's license has been
suspended or revoked because of a conviction, unsatisfied
judgment or violation of the OWI law to prove financial
responsibility for any future damages or injuries that
driver may cause.
If you cause personal injury or damage exceeding $1,000
to the other party, you must next prove your financial
responsibility. Otherwise, your license will be suspended.
You can prove financial responsibility in one of these
- Show that you are covered by automobile liability
insurance at the time of the accident;
- Post cash, cashier's check, certified check, bank
draft or postal money order payable to the Office of
- Get releases from all other damaged or injured parties;
- Obtain a decision resulting from a civil damage action
relieving you of all liability;
- File an agreement to pay the other damaged or injured
parties on an installment plan;
- Execute a warrant for confession of judgment which
includes an agreement upon payment schedule;
- File evidence of a complete settlement of all damages
Financial responsibility after an accident and future
proof of rules apply to non-residents as well. Non-residents
cannot operate or register any vehicle in Iowa until all
requirements are met.
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