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Best 3 Car Insurance Companies in Iowa 2021
Iowa is the fourth least expensive state in which to own a car, but when it comes to insuring a car, prices are all over the place for the same coverage. You can save a significant amount by shopping around and gathering different quotes. And you might find that the less expensive coverage may actually be more comprehensive.
Our Top 3 Picks for the Best Cheap Car Insurance in Iowa
Look for quotes from various reputable car insurance companies, but be smart and careful about which one you select. You should always shop around, especially in Iowa, where it could save you over a grand of your hard-earned money per year. Just because an insurer is the cheapest option for one driver doesn’t mean that one size fits all.
You should never buy insurance from providers that do not have a strong financial standing. You don’t want to waste your time haggling with a company that isn’t a higher-tier provider. The companies listed here have the top scores from A.M. Best and J.D. Power. A.M. Best is a financial-strength rating agency that assesses a company’s long-term stability, and J.D. Power is a global leader in car insurance customer satisfaction surveys. With solid ratings from these two sources, you should be able to trust that you have chosen a company that will handle and pay claims professionally and efficiently when you need it to.
The price differences among these three insurers are staggering, probably because Iowa does not have a minimum coverage requirement. There is much less competition in the Iowa car insurance market, which allows companies to set rates based on reputation alone. Allstate is probably the more well-known option, and it is $340 higher than State Farm. We asked the insurers listed here to provide quotes for a $2,000 deductible on both collision and comprehensive coverage, but Allstate does not offer deductibles higher than $1,000, which makes its prices steeper.
Consider going with State Farm insurance because of the extraordinary value and its reputation, which is as good as the other companies.
Iowa’s Minimum Coverage Requirements for 2021
Iowa is a rarity in that you are not legally required to have car insurance, but you must be able to show financial responsibility. If you have an accident and cannot show proof of financial responsibility, your driving privileges could be revoked. Therefore, it’s recommended that you get insurance, even though you are not required to have it.
If you do get insurance, there are minimums you need to comply with, but they are fairly standard. They are:
- $25,000 for the injury or death of one person (yourself, a passenger, another driver, pedestrian, etc.)
- $40,000 for the total damages caused by a single accident
- $15,000 for property damage
Take the Time to Shop Around for New Insurance
Insurers don’t calculate your rate based on risk alone anymore; they use a controversial tactic called price optimization, which collects and analyzes a ton of information about you (including your online shopping habits and social media activity) to determine how you would react to a premium hike. If the data says you’d be passive and not shop for a better rate, the insurer takes advantage of that to optimize profits. The rate hike is often just enough to maximize profit but keep you from being alarmed. If the companies think you won’t leave them for a different company, they’ll absolutely take advantage of you. Young drivers, bad drivers, and those with low credit will also experience higher rates.
Shopping for a new policy every year or so is great for two reasons: First, it prevents you from being marked as someone willing to pay a higher car insurance rate. Insurance companies want to increase profits, but they also want to keep your business. Secondly, if insurers fear you’re going to move to the competition, they won’t take the chance of raising your rates.
Fifteen states have banned price optimization, but unfortunately, Iowa is not one of them. That said, it’s up to you to make sure that you’re paying a rate that’s based on your risk profile and not predictive analytics.