All drivers in Iowa must have liability insurance coverage in place. This provides protection if they are determined to be the at-fault driver in an accident. The insurance company will pay for injuries, lost wages and funeral expenses following an at-fault accident. It also pays for the cost of repairs to the other driver’s vehicle and property damaged in the accident, such as light stands, sign posts, and guard rails.
Under state law, car rental companies must offer customers the minimum level of liability coverage required by the state when they reserve a vehicle. The coverage offered by the rental car company will cost somewhere between $7-14 per day.
A car rental customer who already has rental coverage included in his or her policy can choose to decline the coverage. Before renting a car, check your policy documents or contact your insurance company to find out if you have this protection in place. Some credit card companies offer this benefit to their customers, and it’s worth your while to contact the card issuer to find out if you already have it in place.
Even if you already have Iowa auto insurance, you may want to consider adding the protection the car rental company is offering when you pick up the vehicle. That way, any claims for damages will be put through on that policy, not your personal one. The accident will appear on your driving record and may affect your rates when your policy is up for renewal.