Iowa Auto Insurance Basics


The auto insurance laws in Iowa are quite different from the laws in other states in US. Even though the statutory bodily injury liability coverage and property damage coverage policies are required by law, the auto insurance laws of Iowa are not compulsory. However, when you are involved in an auto accident in Iowa, you should produce proof of financial ability to meet the claim that could arise out of the accident. If you fail to do so, your driving license could be suspended. In Iowa, the financial responsibility could be proved in the following methods. 

  • You could produce the bodily injury liability coverage and the property damage coverage to prove that you are adequately covered at the time of the auto accident.
  • You could send cash, certified check, cashier’s check, bank draft, or postal money order. These payments should be payable to the Office of Driver Services in Iowa.
  • You could obtain release documents from other injured parties for injuries and property damages.
  • You could obtain a court decision from a civil damage suit, declaring that you are relieved of all liability.
  • You could file an agreement to the other parties involved in the accident that the injury expenses and damages would be paid by you on an installment basis.
  • You could execute a confession warrant with an agreement about the payment schedule.
  • You could file evidence for settling all bills for injuries and damages. 

These are complicated processes involving legal processes, along with your time and money. The best option is to buy the basic auto insurance liability coverage mandated by the state of Iowa. You would do better to purchase comprehensive and collision coverage also, along with medical coverage up to the maximum limits that you could afford to cover yourself financially in any extreme eventuality. You should also carry your car insurance ID, containing your car insurance company, the auto insurance policy number, and the policy expiration date, whenever you are driving. This would help you when you are involved in an accident. 

Before purchasing auto insurance, you should furnish correct details in the applications so that the declarations about you, the other driving members in your household, the models and makes of the vehicles in your home, their registration numbers, your house address, the coverages that are opted by you, and the limits that you select are not false in any aspect. Any lapse in these factors could result in a refusal by the insurance company when you file a claim after an accident. 

You should enter into an agreement with the insurance company, clearly mentioning the items that you wish to include in your coverage and the items that you wish to exclude. It would be better if you exclude the items that would cost you too much by way of premium amounts but might not occur at all. This would save you considerable amount on your auto insurance. You should also study the terms and conditions and the definitions in the auto insurance policy, so that you understand them properly and protect yourself accordingly at the lowest cost.