All 50 U.S. states require drivers to carry auto insurance, but the amount of required coverage varies from state to state. Unlike most states, Iowa does not require proof of liability insurance to register a vehicle; rather, Iowa drivers are governed by the Financial & Safety Responsibility Act. Like liability insurance, this Act requires Iowa drivers who are involved in an accident to provide “proof of financial responsibility,” which can be done in various ways:

• Produce valid state-issued proof of liability insurance
• Make a direct payment to the Office of Driver Services to cover the other driver’s expenses related to an accident
• Provide a written release from all parties involved in the accident, agreeing that you hold no financial liability for the accident
• Negotiate a payment schedule with the other parties involved in the accident
• Provide proof that you have legally been excused from OR have already fulfilled your financial liability for the accident

See the Iowa Motor Vehicle Financial Responsibility Law website for more information.

Also, please note: if you are the owner of a vehicle involved in an accident, but were not driving the vehicle at the time, you and the driver must provide proof of financial responsibility.

Standard Iowa Liability Insurance Requirements

Although you can legally remedy your financial liability for an accident using any of the methods described above, the easiest way to prove your financial responsibility in compliance with state law is to carry liability insurance. Liability insurance covers the medical and property damage expenses of the other driver and passengers in the event that you cause an accident. Iowa requires the following minimum liability coverage to comply with state guidelines:

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $20,000 for one person
• Minimum of $40,000 for the other driver and all passengers

DL (Property Damage Liability): Liability coverage for damage to the other vehicle or the other driver’s property, and any public or private property surrounding the accident scene

• Minimum of $15,000 for all property damage

Failure to Prove Financial Responsibility

If you are involved in an accident in Iowa and fail to provide acceptable proof of financial responsibility, you will be subject to suspension of both your registration/license plates and your driver’s license. In order to reinstate your driving privileges, you must show proof that you have $55,000 in liability insurance coverage.

When Proof of Financial Responsibility is NOT Required

• Your car was parked or stopped at the time of the accident
• Your car was used without your permission
• Your car was the only vehicle involved in the accident and no one else’s property was damaged

About Liability Insurance

Liability insurance only pays for the other driver’s injuries and damages resulting from an accident that is determined to be your fault. Following an accident, law enforcement officers will collect a detailed report including both drivers’ accounts, witness statements, and other factors contributing to the circumstances of the accident. This report will be used to determine who is officially at fault for the accident. If you are involved in an accident and the other driver is determined to have been at fault, he/she will bear the financial responsibility for the accident.

Liability insurance will not cover damages to your own car or injuries to yourself or your passengers if you are determined to be at fault for the accident. If you want to be insured for your own expenses following an accident no matter who is at fault, you may need to carry additional insurance coverage, as described below:

Other Coverage Recommended (but not Required) by the State of Iowa

• PIP (Personal Injury Protection): Covers the expenses for injuries to yourself and your passengers in an accident determined to be your fault
• Collision Coverage: Covers the expenses for damage to your own vehicle resulting from an accident determined to be your fault
• UMC (Uninsured/Underinsured Motorist Coverage): Covers your medical and repair expenses if you are involved in an accident that is the other driver’s fault, and that driver does not carry liability insurance
• Comprehensive Coverage: Covers damages to your property caused by anything other than an accident, including acts of nature, vandalism, and in some cases, theft

If you have a loan, lease, or lien on your vehicle, you may be required to carry more comprehensive insurance than what is required by the state.

Accident Reporting Requirements

After a traffic accident involving injuries or damages exceeding $1,000, a report must be made to the Iowa state government. If the police were not notified of the accident, Iowa drivers are required to file a report with the Office of Driver Services using this form within 72 hours of the accident. This report is not necessary if the accident was investigated by law enforcement officers.