Short answer: Iowa requires liability limits of $20,000 per person, $40,000 per accident and $15,000 for property damage. Every policy must also include uninsured and underinsured motorist coverage at 20/40 unless the named insured signs a separate written rejection. Driving without proof can bring a $325 fine, removal of your plates, or impound.
The numbers
Iowa's financial responsibility law, Iowa Code §321A.1(11) and §321A.21, sets the floor:
| Coverage | Minimum |
|---|---|
| Bodily injury, one person | $20,000 |
| Bodily injury, one accident | $40,000 |
| Property damage | $15,000 |
| Uninsured motorist (UM) | 20/40, included unless rejected |
| Underinsured motorist (UIM) | 20/40, included unless rejected |
These are low limits. A $15,000 property damage limit won't pay for most new pickups if you total one.
Proof of insurance and what an officer can do
Iowa Code §321.20B requires drivers to carry proof of financial liability coverage. Proof can be a paper card or an electronic image on your phone. The rule reaches beyond streets: the statute treats free parking lots open to the public or to a business's customers as part of the highway.
If you can't show proof, the officer may choose among four responses:
- A warning.
- A citation.
- A citation plus removal of your plates and registration. You may drive the car for 48 hours, only to get it off the road.
- A citation plus impoundment. A car left in impound 30 days can be treated as abandoned.
To get plates back, you prove coverage to the clerk of court, take the receipt to the county treasurer and pay a $15 administrative fee.
Insured but couldn't find the card? If you prove coverage was in effect when you were stopped, the citation is dismissed, though court costs are still assessed.
The scheduled fine
Iowa Code §805.8A(14)(f) sets the fine for a financial liability violation at $325, or $645 when the violation is connected with an accident.
Crash reports and license risk
The Iowa DOT accident page says you must file a report within 72 hours when a crash causes injury, death, or more than $1,500 in total damage, unless law enforcement filed one. If you're involved in that kind of crash, you need to show you had insurance, or both the owner's registration and the driver's license can be suspended. Exceptions include a legally parked car and a vehicle used without permission.
UM and UIM: included unless you sign them away
Under Iowa Code §516A.1, every auto liability policy must include:
- Uninsured motorist coverage, which also covers hit-and-run drivers.
- Underinsured motorist coverage.
Both are at least 20/40. The named insured can reject either one, but the rejection must be in writing, signed, and on a form separate from the application, containing nothing but the rejection. Once signed, the insurer need not add the coverage back on renewals of that policy.
Section 516A.2 is Iowa's anti-stacking rule. With several vehicles or policies, you generally recover up to the highest single UM or UIM limit, not the total of all of them.
Since the at-fault driver may carry only $20,000 per person, UIM matched to your own liability limits is often the coverage that pays for a serious injury.
How fault affects your claim
Iowa uses modified comparative fault. Under Iowa Code §668.3, you're barred only if your share of fault is greater than the combined fault of the people you sue. Otherwise your damages are reduced by your percentage.
Building a sensible Iowa policy
- Raise liability above 20/40/15. Lawsuits aren't capped at your limits.
- Keep UM and UIM, ideally matched to your liability limits.
- Add medical payments coverage for your own and your passengers' bills regardless of fault.
- Carry collision and comprehensive on any car you'd replace rather than walk away from. Lenders require them.
Bottom line
Iowa's floor is 20/40/15, the officer has real discretion at a stop, and UM/UIM rejection takes a separate signed sheet. See our car insurance minimums by state.
Reach Alishahi Insurance or call (877) 711-4545. Visit insurance in Iowa and auto insurance.
Frequently asked questions
What is the minimum car insurance in Iowa?
$20,000 per person and $40,000 per accident for bodily injury, plus $15,000 for property damage.
What is the fine for no insurance in Iowa?
The scheduled fine is $325, or $645 if the violation is connected with an accident.
Can police take my plates in Iowa for no insurance?
Yes. An officer may remove plates and registration or impound the vehicle, in addition to a citation.
Is uninsured motorist coverage required in Iowa?
It must be included at 20/40 unless the named insured signs a separate written rejection. The same goes for underinsured coverage.
When must I report a crash to the Iowa DOT?
Within 72 hours if there's injury, death or more than $1,500 in damage, unless police filed a report.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.