Auto Coverage in Iowa
Auto Insurance Laws and Trends in IA
Iowa has adapted the tort system when it comes to dealing with auto insurance claims. This means that whichever party is deemed to be responsible for causing the accident is responsible for al costs related to property damage and bodily injury. This is why it is mandatory to carry minimum limits of liability insurance.
Minimum Insurance limits
- Bodily injury: $20,000 per person, $40,000 pr accident
- Property damage: $15,000 per accident
It is also recommended that motorists in Iowa purchase additional insurance coverage , as well as higher limits of liability.
Optional auto insurance coverage in Iowa
- Collision: This covers physical damages to your vehicle if involved in a roll over or at fault collision.
- Comprehensive: This covers physical damages to your vehicle in the case of fire, theft, vandalism, windstorm, hail, or animal collision.
- Uninsured / underinsured motorist coverage: This auto insurance covers injuries sustained in an accident involving a driver who doesn't carry adequate insurance or has no insurance at all.
- Personal injury protection (PIP): This pays for medical expenses, funeral expenses, loss of wages, rehabilitation, long-term care, or daycare expenses.
Iowa is one of the lowest ranking states for automobile accidents and injuries. The number of auto claims in Iowa has been steadily decreasing; however, the dollar cost of claims is on the rise. This is because the cost of repairs and medical expenses is also increasing. According to the Insurance Research Council, the following statistics have been reported:
Auto claims trends in Iowa
In 2008: Almost one out of every 100 accidents involves an injury claim, but almost 3 out of every 100 accidents involves a property damage claim. In 2008, the number of bodily injury claims fell by 11% and the number of property damage claims fell by 19%. However, the dollar amounts of bodily injury claims rose by 3.3% and the number of property damage claims increased by 2.9%.