Auto insurance in Iowa is totally different to most other states and this is largely due to the fact that the Hawkeye State is a very rural area. There is no legal minimum requirement for insurance in Iowa. However it is strongly recommended that all drivers do have some level of cover.
Proving financial responsibility is vital but it can be done in a number of ways. This can include purchasing car insurance, having cash available to settle any liability obligations or a written waiver from any other driver involved in an accident.
If a driver is found to be carrying inadequate insurance, they are expected to provide proof of financial responsibility and a capability to provide adequate funding in the event of an ‘at fault’ accident. In some cases, a court can relieve the driver of any responsibility or the arrangement of an installment plan to pay for the damage can be agreed. Failing to meet any of these requirements can result in suspension or loss of license.
As there is no state mandatory legal minimum requirement for motorists in Iowa, financial responsibility is the only alternative unless a driver chooses to have an insurance policy. Clearly, this is the best way to provide financial security should an accident renders both vehicles unusable or if a third party sustains injuries. There are certain circumstances in which a vehicle owner can be absolved of financial responsibility. These might include an accident where the vehicle was operated without the owner’s consent.
It is strongly advised that all drivers take out a car insurance policy even if vehicle use is minimal. If a driver intends to drive across other states, they will still be required to meet the mandatory minimum obligations of the car insurance laws for those regions.