Vehicle Insurance

Iowa does not have a compulsory insurance law. Instead, the Financial and Safety Responsibility Act protects you from the financially unsound and reckless driver. The requirements are:

  • You are required to show proof of financial responsibility: In Iowa, you don’t necessarily need auto insurance, although it’s strongly recommended that you do. If you’re in an accident in which more than $1,000 of damage is caused – which isn’t a very difficult threshold to reach – you are required to show that you’re financially capable of covering the costs of the accident.
  • Meeting the financial responsibility burden means you have auto insurance, you have cash available, you have a written waiver from driver’s involved, a court relieved you of your responsibility, or have a plan to pay for the damage in an installment plan.
  • Failure to meet this requirement could result in the loss of your license.
  • Experts agree that auto insurance is the smartest way to retain financial responsibility. By having complete coverage, you’re protected in the event of a serious accident. Otherwise, you could be responsible for paying for several people’s physical injuries, as well as property damage. This amount could run past hundreds of thousands of dollars.
  • In some cases, proof of financial responsibility isn’t required. These instances include if your vehicle was operated without your permission, the accident occurred while your car was legally stopped, or when no property or persons other than yourself is damaged or injured.
  • The easiest way to provide proof of responsibility is with an insurance card, which your carrier will provide you. Carry your card in your vehicle’s glove box at all times.

Vehicle Insurance

Iowa does not have a compulsory insurance law. Instead, the Financial and Safety Responsibility Act protects you from the financially unsound and reckless driver. The requirements are:

  • You are required to show proof of financial responsibility: In Iowa, you don’t necessarily need auto insurance, although it’s strongly recommended that you do. If you’re in an accident in which more than $1,000 of damage is caused – which isn’t a very difficult threshold to reach – you are required to show that you’re financially capable of covering the costs of the accident.
  • Meeting the financial responsibility burden means you have auto insurance, you have cash available, you have a written waiver from driver’s involved, a court relieved you of your responsibility, or have a plan to pay for the damage in an installment plan.
  • Failure to meet this requirement could result in the loss of your license.
  • Experts agree that auto insurance is the smartest way to retain financial responsibility. By having complete coverage, you’re protected in the event of a serious accident. Otherwise, you could be responsible for paying for several people’s physical injuries, as well as property damage. This amount could run past hundreds of thousands of dollars.
  • In some cases, proof of financial responsibility isn’t required. These instances include if your vehicle was operated without your permission, the accident occurred while your car was legally stopped, or when no property or persons other than yourself is damaged or injured.
  • The easiest way to provide proof of responsibility is with an insurance card, which your carrier will provide you. Carry your card in your vehicle’s glove box at all times.