When it comes to getting cheap car insurance in Iowa, shopping around is key. Even though Iowa’s rates are on the affordable side compared with national averages, quotes for a single policy can still rise or fall by hundreds of dollars a year depending on the company. It pays to compare as many estimates as possible.
NerdWallet has done much of the heavy lifting already. We researched rates from the eight largest insurance companies in the state and dug up the three cheapest options for a variety of driver groups.
Below you’ll find the best deals for:
- Good drivers
- Young drivers
- Drivers with one at-fault accident
- Drivers with poor credit
- Retired drivers
Cheapest for good drivers
For drivers with no at-fault accidents, DUIs or moving violations; range of average prices: $666 to $1,100 a year
price
- $666/year
price
- $831/year
price
- $880/year
The average for good drivers among the three cheapest companies was $792 a year. Nationwide had the lowest estimate in our study, with American Family and State Farm coming in at $165 and $214 a year more, respectively. Drivers with clean records should also have plenty of discounts available to cut costs even more, such as those for going accident or claim free for a big chunk of time or completing a safe-driving course.
Cheapest for young drivers
For drivers in their early 20s; range of average prices: $203 to $484 a year
price
- $203/year
price
- $233/year
price
- $240/year
Motorists in their early 20s can typically get by with less car insurance than older drivers, and can find pretty cheap car insurance in Iowa. In fact, this category had the smallest range of any we tested — less than $300 difference between lowest and highest quotes — proving that young drivers have several solid options to choose from. It’s hard to go wrong choosing from any of the three cheapest companies above; all returned sample rates at $20 month or less.
Cheapest for drivers with one at-fault accident
Range of average prices: $1,038 to $1,760 a year
price
- $1,038/year
price
- $1,059/year
price
- $1,142/year
In our analysis, having an at-fault accident added almost $400 a year to a driver’s lowest available quote. Interestingly, the range of prices for this group was still relatively small, meaning Iowans with spotty records — although likely facing higher rates than those with clean records — should be able to avoid sky-high premiums.
Cheapest for drivers with poor credit
For drivers placed in the lowest credit tier as determined by the industry; range of average prices: $957 to $1,455 a year
price
- $957/year
price
- $1,097/year
price
- $1,148/year
Frustrating as it may be, having poor credit can mean paying more for Iowa car insurance. Our research found that the lowest average quote for drivers in this category was nearly $300 higher than the best deal for drivers of the same age with no credit issues. Nationwide was the most affordable choice, edging out American Family by about $150 a year. The midwest-only Grinnell Mutual rounded out the cheapest three companies from our study, and makes a good choice for those who want the personal touch of a smaller, regional insurer.
Cheapest for retired drivers
For drivers in their mid- to late 60s who no longer use their car for commuting; range of average prices: $666 to $1,100 a year
price
- $666/year
price
- $760/year
price
- $791/year
Although there’s a perception that older drivers pay more for auto coverage than younger ones, this isn’t necessarily the case. In fact of the three cheapest companies for retirees in Iowa, Nationwide returned the same average quote for good drivers in their 60s and in their 30s, and State Farm’s and American Family’s rates actually went down for older drivers. A big reason why retired drivers can find cheap car insurance in Iowa is because they typically use their vehicle less than motorists who regularly commute, meaning there are fewer chances for accidents to happen.
Minimum car insurance requirements in Iowa
Iowa drivers must carry liability insurance with the following minimum limits:
- $20,000 bodily injury liability per person
- $40,000 bodily injury liability per accident
- $15,000 property damage liability per accident
If you’re ever found at fault in a crash, liability insurance kicks in to help cover others’ property damage and injury treatment. However, since any damages that exceed your limits will have to come out of your own pocket, it’s usually wise to purchase more than the bare minimum. You may also want to consider common optional coverages — like collision, comprehensive or uninsured motorist protection — for a more well-rounded policy.
To learn more about coverage options for your Iowa plan, visit NerdWallet’s state-by-state guide to state car insurance requirements.
Alternative car insurance in Iowa
Drivers who are denied car insurance on the open market because of a spotty driving record or other reasons can seek coverage through the Iowa Automobile Insurance Plan (IAAIP).
NerdWallet is also here to help Iowans find the protection they need. Our car insurance comparison tool is your go-to source for getting the most competitive quotes in the state.
methodology
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits and 100/300 uninsured motorist bodily injury coverage. We used a 2012 Toyota Camry in all cases.
Our sample retired driver was 67 and drove 50% fewer annual miles than other groups. Our sample young driver was 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
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