Insuring Your Vehicle In Iowa
Iowa residents have a few more options when it comes to insuring their vehicles. While many states require a set amount of minimum liability insurance for their drivers, Iowa car insurance is a bit more flexible. People driving in Iowa have the option to either purchase auto insurance or provide proof of financial responsibility instead.
What is proof of financial responsibility?
The easiest, and most common way, to prove financial responsibility as a driver in Iowa is to invest in a car insurance policy. However, there are other ways to meet the responsibility requirement without purchasing a policy. The number Iowa has decided is needed to be financially worthy is $55,000. This can be purchased or invested in as a surety bond or securities equal or it can be ordinary cash. The Iowa Office of Driver Services also gives out a certificate of self insurance for drivers meeting their criteria. These options can be time consuming, and expensive, so most drivers simply purchase a car insurance policy instead.
What are the consequences of not having proof of financial responsibility?
A driver that is involved in an accident, or stopped by law enforcement, that cannot present proof of financial responsibility is bound for trouble. A motorist’s license can be suspended, or even taken away, from drivers who cannot deliver proof of their insurance at the time it is requested. Keeping a copy of documentation in the vehicle may be the wisest course of action.
What is the minimum liability coverage needed in Iowa?
Drivers in Iowa that choose to purchase car insurance must have at least $20,000 for a single person in an accident, $40,000 for more than a single person in a collision, and $15,000 to handle any property damage. This is the bare minimum required in Iowa and many industry experts admit that purchasing more than the minimum is not only necessary, but also a really smart move. The minimum totals may not be enough to cover clients, so local car insurance companies suggest purchasing more than the basics to truly be covered in the event of an accident.
For drivers in Iowa who are struggling to make ends meet, the need to obtain auto insurance is a lower priority than that of housing, clothing and feeding their families. However, the states are getting more aggressive about laws surrounding car insurance. This ensures that both drivers and car insurance companies are not getting regularly ripped off.