Shopping for Car Insurance in Iowa
Auto insurance goes beyond being an obligation in Iowa – it’s about safeguarding your investment and granting you peace of mind while driving. Understanding auto insurance can seem daunting whether you’re an experienced driver or just earned your driver’s license. Here’s a breakdown of Iowa’s auto insurance coverage, detailing the protections commonly included, the reasons for their necessity, and how they can support you during events.
Car Insurance FAQs
How much auto insurance do I need in Iowa?
The Iowa minimum auto insurance requirements are designed to provide a small level of protection in the event you damage someone else’s property, or you cause harm to another person. In Iowa, drivers need a minimum of $20,000 per person and $40,000 per accident for Bodily Injury Liability Coverage and $15,000 per accident for Property Damage Liability Coverage.
What is the best deductible?
The best deductible is what you can afford to pay out of pocket when you file an auto insurance claim. The higher the deductible, the lower your premium will be, and vice versa. A higher deductible means your accepting a more significant portion of the risk yourself. It is best not to take on more risk than you can afford.
What is “full coverage?”
There is no such thing as “full coverage” insurance. Full coverage auto insurance is a term that is used to suggest you have chosen protection that goes beyond the minimum coverage required by your State. It typically includes collision and comprehensive coverage, medical payment coverage, and uninsured and underinsured motorist coverage.
How can I save money on my car insurance?
You can save money on your car insurance by avoiding moving violations, crashes, DUIs, and other incidents. By having a clean driving record, you may also qualify for a safe driver discount. Students may qualify for good student and student-away-at-school discounts. Your vehicle’s anti-theft devices and safety features may also provide more discounts. Paid-in-full, multi-car, and prior carrier discounts are also common.
How long does an auto accident affect my insurance?
A crash won’t impact your car insurance premiums forever. After about three to five years, your rates should recover. Exactly how long this takes will depend on the type of accident as well as the company you are insured with.
Is buying direct cheaper than buying through an agent?
Buying direct is not always cheaper than buying through an agent. You might think that cutting out the middleman would result in cheaper car insurance rates, but when it comes to insurance, this isn’t the case. In fact, an independent agent, one that represents many insurance companies, can often save you money.
What is the best auto insurance company?
The best auto insurance company differs per individual. No insurance company is objectively the best. It all depends on what you’re looking for. Do you want the best customer service, the broadest coverage, or the lowest rates? Or maybe you have unique coverage or underwriting needs? An agent can help you compare car insurance quotes from multiple insurance companies and find the right policy for your situation.
What is the best or cheapest auto insurance rate?
The best or cheapest auto insurance rate can be found by comparison shopping. Compare premiums as well as differences in coverage. An independent insurance agent can help. They can provide options from multiple carriers, along with the expert guidance you need to make a smart choice.
How do I switch to a new auto insurance company?
You can switch to a new auto insurance company at any time, but to avoid overpaying or violating state law, you do need to watch out for a couple of things. Car insurance policies are often sold for coverage periods of six months or one year. In some cases, you may be charged a fee if you decide to cancel your insurance policy early. You may also be entitled to a refund for the unused portion of the premium. You also want to make sure you have continuous coverage to avoid a coverage gap.
Essential Coverages in Iowa: Your Fundamental Safety Net
Every vehicle operated in Iowa must carry minimum liability insurance. This coverage handles injuries and property damage to others in case you are responsible for an accident. Here’s an overview of what’s covered;
Bodily Injury liability
Bodily Injury, often referred to as BI, helps pay for injuries to others if you’re at fault for an accident. It can also help pay for legal fees if you’re sued for damages. BI is one of the coverages required by most states and is included in most car insurance policies. This also provides coverage for lost income of individuals injured in an accident you cause; in Iowa, a minimum of $20,000 per person and $40,000 per accident is mandated.
Illustrative Claim Scenario
You rear-end another vehicle at a traffic light. The driver of the vehicle sustains a broken arm and needs surgery. Your bodily injury liability coverage would step in to cover their costs.
Property Damage Liability
This coverage covers the costs to repair or replace any property that gets damaged in an accident you cause, with a minimum coverage threshold of $15,000 in Iowa.
Illustrative Situation
For instance, if you accidentally back into another car while in a parking lot, leading to an expensive auto body shop bill. Your Property Damage liability would step in to cover the expenses for fixing the damage to the vehicle.
With the cost of auto-body repairs rising year over year, carrying the minimum coverage of $15,000 may likely leave you with having to pay the balance of the bill out of your own pocket.
Uninsured/Underinsured Motorist Coverage (UM/UIM)
Unfortunately, more than one in ten Iowa drivers are uninsured, and many more are underinsured. Sadly, this number is climbing as car insurance rates are rising year after year. If you’re ever in a collision caused by an uninsured or underinsured driver, having this coverage can help protect you and your passengers from financial strain.
Uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage are optional additional insurance policies that can help if you’re in an accident with a driver who doesn’t have enough insurance. UM coverage protects you if you’re hit by a driver without insurance, while UIM coverage protects you if you’re hit by a driver with insurance that doesn’t cover your damages or injuries. UM coverage can pay for:
- Car repairs
- Replacement property in your car
- Rental car
- Medical bills for you and your passengers
- Pain and suffering costs
- Diminished value if your car is worth less after the accident
Collision Coverage
This policy reimburses you for repairs needed on your car following a collision with another vehicle or an object such as a guardrail or fence.
Reasons to Think About It? Collisions can occur unexpectedly to anyone, regardless of how cautious they are. Without collision coverage, you would have to bear the repair costs yourself.
Comprehensive Coverage
This type of insurance coverage protects your car from damages caused by incidents other than collisions such as theft, fire, vandalism, hailstorms, or animal accidents.
Reasons to Consider It? Comprehensive coverage shields you from a range of events that could potentially harm your vehicle.
Medical Payments Coverage (MedPay)
This option covers expenses for you and your passengers regardless of fault in an accident.
Why Consider It? MedPay can assist with paying bills incurred after an accident, even if you have health insurance that may not cover everything.
Rental Reimbursement Coverage
This feature helps pay for renting a vehicle while yours is being fixed following a covered loss.
Why Consider It? Being without a car can be inconvenient. Rental reimbursement coverage ensures you have transportation while your vehicle is under repair.
Keep in mind that these are some of the common optional coverages. Consult your insurance agent regarding your requirements and suitable coverages.
Why Choose an Independent Agent?
Independent insurance agents have the flexibility to explore options across companies. They can compare quotes from many insurance companies to secure the right coverage at competitive rates. Here’s why TSJK Insurance could be your trusted companion in navigating Iowa’s auto insurance landscape;
- knowledgeable; Our agents are well-versed in Iowa’s auto insurance regulations and can explain coverage options clearly and concisely.
- variety; By partnering with insurance providers, we have the ability to tailor the coverage and price to suit your needs.
Contact TSJK Insurance Today!
We’re here to help you find the perfect car insurance policy that gives you peace of mind and protection. Give us a call to get a free quote and discuss your options with a friendly and knowledgeable agent.
