Key Takeaways
- Iowa requires minimum liability coverage of 20/40/15 for all drivers
- Uninsured motorist (UM) coverage must be offered but can be rejected in writing
- Iowa follows a traditional tort (at-fault) system, not a no-fault system
- Drivers must carry proof of insurance at all times (paper or electronic)
- Penalties for driving without insurance include fines of $325-$645 and license suspension
Last updated: January 2026
Iowa Auto Insurance Requirements
Minimum Liability Coverage: 20/40/15
Iowa law requires all drivers to maintain minimum liability coverage. The 20/40/15 split limit breaks down as follows:
| Coverage Type | Minimum Limit | Purpose |
|---|---|---|
| Bodily Injury - Per Person | $20,000 | Covers injuries to one person |
| Bodily Injury - Per Accident | $40,000 | Total BI coverage per accident |
| Property Damage | $15,000 | Covers damage to others' property |
Uninsured Motorist (UM) Coverage
Mandatory Offer Requirement
- Every insurer licensed in Iowa must include UM coverage in every new policy quote
- UM limits offered must be at least 20/40 (matching liability minimums)
- Policyholders may reject UM coverage in writing
- Without written rejection, UM coverage is automatically included
Underinsured Motorist (UIM) Coverage
- Not required by Iowa law
- Available as optional coverage
- Recommended for added protection
Proof of Insurance Requirements
Iowa requires all drivers to:
- Carry insurance ID card at all times
- Show proof to law enforcement upon request
- Electronic proof accepted on smartphones
- Paper or digital formats are valid
Penalties for No Insurance
| Violation Type | Fine Amount |
|---|---|
| No accident caused | $325 |
| Accident caused | $645 |
| Additional penalties | License suspension, SR-22 requirement |
Iowa Tort System
Iowa is an at-fault (tort) state, NOT a no-fault state:
- The at-fault driver is responsible for paying damages
- Injured parties file claims against the at-fault driver's insurer
- Third-party claims are the standard process
Exam Tip: Iowa's 20/40/15 minimums are among the lower limits nationally. A proposed law may increase these to 50/100/25, but as of 2026, the 20/40/15 minimums remain in effect.
Test Your Knowledge
What are Iowa's minimum auto liability limits?
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Test Your Knowledge
Regarding uninsured motorist (UM) coverage in Iowa, which statement is correct?
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Test Your Knowledge
What is the fine for driving without insurance in Iowa when no accident is caused?
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D