Iowa Car Insurance Laws
In Iowa, drivers are not required by law to purchase a car insurance policy. Before Iowa drivers jump for joy, this does not mean that they are not required to be prepared to take financial responsibility after they have caused a car collision.
Iowa’s law states that drivers must be able to pay any medical bills or repair bills for those they hit with their vehicles. The fact is that the state of Iowa does not limit the manner of taking financial responsibility to purchasing car insurance. Our free car insurance comparison tool with your ZIP code is a great way to be prepared for any driving troubles by finding FREE quotes that have you covered.
How Iowans Can Prove Financially Responsible for Damages and Injuries
Iowa drivers do not have to purchase car insurance, but they will need to show proof of their ability to pay the bills after they have been involved in a car accident. In Iowa, people have several ways they can show they can pay these bills, such as depositing an amount of money to cover all car crash-related expenses with the Office of Driver Services. Enter your ZIP code into our FREE auto insurance comparison tool to view great rate quotes now!
Iowans may also have all affected parties sign an official release or make payment arrangements with the injured and those with property damages.
They may produce a warrant for confession of judgment that offers the injured and those with property damages a payment installment plan or arrange a settlement with the affected parties.
If they cannot show responsibility by performing one of the above actions, they may be relieved of financial responsibility by obtaining a civil damage action decision or present proof of liability insurance coverage.
Other Ways of Proving Financial Responsibility
Some Iowa drivers have had their driver’s licenses revoked or suspended due to being convicted of a crime, for not following through what has been ordered of them by the courts or because they violated Iowa’s operating while under the influence (OWI) laws. Those with OWI convictions will have to show that they can pay for any damages they cause differently than what has been outlined above.
In order for those with OWI convictions to provide proof of financial responsibility, they will need to have their car insurance companies file the SR-22 form for them with the Office of Driver Services that demonstrates the client has purchased liability coverage. They may also leave a deposit of at least $55,000 or have their employers file either the SR-23 or SR-22 forms if they drive for the company.
The Best Choice Is to Purchase Liability Car Insurance
Iowa drivers do not have to purchase car insurance if they have the means to pay everybody’s bills after they cause an accident. Not purchasing a liability insurance policy doesn’t seem like such a good idea after all. The best thing that Iowa drivers can do is to purchase the liability coverage in the amounts that Iowa has set for its drivers.
Bodily Injury Liability in Iowa
Liability coverage is for bodily injuries and property damages and is very important for drivers in tort states to purchase. The bodily injury liability insurance must be in the amount of at least $20,000 for one person. If one person has been injured or killed, the money in the insurance policy will go toward this person’s bills.
As often occurs in car collisions, more than one person can be injured. Iowa prepares for this possibility with the need for drivers to purchase $40,000 bodily injury liability to cover the medical expenses or the burial costs of all people injured or killed in the accident.
Property Damage Liability in Iowa
It’s not beyond the realm of possibility that there will be property damaged in the car crash. In that case, the at-fault driver will also need to take financial responsibility for paying to have the property repaired. If it has been damaged beyond repair, the coverage will replace the item. Iowa has set the limit for property damage liability coverage at $15,000 for this purpose.
What Awaits Those Who Drive without Financial Responsibility
Iowa has relatively lenient penalties for not maintaining financial responsibility for a car accident as compared to other states, but it could be bad enough for a lot of drivers.
In Iowa, drivers will not have fines and jail sentences to worry about for their first offenses, but they will lose their driving privileges.
If Iowa drivers without car insurance are part of an accident, they will suffer penalties according to Iowa’s laws unless they can prove that the at-fault driver took the car without asking the owner, the only person hurt in the accident and the only property damaged belonged to the at-fault driver or the uninsured vehicle was not moving at the time of the accident.
Car Insurance Is the Most Affordable Option
Car insurance will be the most affordable way for people to maintain financial responsibility for any injuries or damages they cause in a future accident. If they can’t afford to leave a deposit and they are unable to relieve themselves legally of all responsibility, they will need to pay for these injuries and damages out-of-pocket.
Risking their financial futures is not necessary, especially since Iowa has some of the lowest car insurance rates in the country. People will be introduced to several of these low rates by entering their ZIP codes into our comparison feature that gives them quotes for FREE!