Car insurance in Iowa (20/40/15)
- Minimum car insuranceIowa's financial responsibility law sets minimums of $20,000 bodily injury per person, $40,000 per accident and $15,000 property damage. Uninsured and underinsured motorist coverage at those limits must be included unless the named insured rejects it in writing on a separate sheet. PIP is not required. Source
- Fault systemIowa is an at-fault (tort) state: the driver who causes a crash is responsible for the other people's injuries and damage. Source
Business insurance rules in Iowa
- Workers’ compensationEmployers must insure their workers' compensation liability. Agricultural employers are covered only if their cash payroll to non-family workers was $2,500 or more in the prior year. Domestic and casual workers are covered once they earn $1,500 or more from the employer in 12 months. Iowa is not monopolistic and does not allow opting out. Source
- Contractor licensingContractors who earn $2,000 or more a year from construction must register with the Iowa Department of Inspections, Appeals, and Licensing (DIAL). Contractors based outside Iowa must file a $25,000 bond. Registrants need an Iowa unemployment insurance number and, if they have employees, a workers' compensation certificate. Source
Home insurance in Iowa
- Home insurer of last resortIowa's FAIR Plan, set up under Iowa Code chapter 515F, gives access to basic property and homeowners coverage for owners who cannot get it from regular insurers. Severe convective storms (hail, straight-line wind including derechos, and tornadoes) are the main catastrophe exposure. Source
Disasters, floods, hail, tornadoes and earthquakes in Iowa
| Measure | Iowa | Rank among the states | Detail |
|---|---|---|---|
| Federal major disaster declarations since 2000 | 41 | #13 (tied) of 51 | Most often for severe storm (29), flood (9), severe ice storm (1). Winneshiek County has been in 14 of them. |
| National Flood Insurance Program claims, 2005–2025 | 8,093 | #19 of 51 | $294.3 million paid; 27% of claims with a known flood zone were outside FEMA’s high-risk zones. |
| Homes in high-risk flood zones with a federal flood policy | 13% | #46 of 50 | 3,832 policies for 30,214 homes in the counties FEMA can measure; US: 40%. |
| Hail reports, 2016–2025 | 3,386 | #9 of 51 | 270 of them 2 inches or larger. Largest stone 4 inches, Lee County, April 2020. |
| Tornadoes, 2016–2025 | 644 | #6 of 51 | 83 rated EF2 or stronger; 3,099 recorded since 1950. |
| Earthquakes of magnitude 4.0+, 2000–2025 | 0 | — | None of magnitude 4.0 or greater recorded in or near the state. |
From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.
Look up the storm history of any county in Iowa.
Worth knowing in Iowa
Iowa requires a written rejection of uninsured or underinsured motorist coverage, and when the insurer supplies the rejection form it must be on its own separate sheet of paper.
Iowa’s insurance regulator
Insurance in Iowa is regulated by the Iowa Insurance Division, which handles consumer complaints and licenses insurers and agents.
Sam Alishahi holds a nonresident insurance producer license in Iowa (NPN 21022298), so requests from Iowa are handled by him directly.
Common questions
What is the minimum car insurance in Iowa?
Iowa's financial responsibility law sets minimums of $20,000 bodily injury per person, $40,000 per accident and $15,000 property damage. Uninsured and underinsured motorist coverage at those limits must be included unless the named insured rejects it in writing on a separate sheet. PIP is not required.
Is Iowa a no-fault state?
Iowa is an at-fault (tort) state: the driver who causes a crash is responsible for the other people's injuries and damage.
Do employers in Iowa need workers’ comp?
Employers must insure their workers' compensation liability. Agricultural employers are covered only if their cash payroll to non-family workers was $2,500 or more in the prior year. Domestic and casual workers are covered once they earn $1,500 or more from the employer in 12 months. Iowa is not monopolistic and does not allow opting out.
What can a Iowa homeowner do if no insurer will write the house?
Iowa's FAIR Plan, set up under Iowa Code chapter 515F, gives access to basic property and homeowners coverage for owners who cannot get it from regular insurers. Severe convective storms (hail, straight-line wind including derechos, and tornadoes) are the main catastrophe exposure.
Sources
- Iowa: Minimum car insurance
- Iowa: Fault system
- Iowa: Workers’ compensation
- Iowa: Home insurer of last resort
- Iowa: Contractor licensing
- Iowa: insurance regulator
General information as of October 2026, not legal advice; confirm current rules with the agency.