Iowa requires at least $20,000 of bodily injury liability per person, $40,000 per accident and $15,000 of property damage liability, often written as 20/40/15. Uninsured, underinsured and hit-and-run motorist coverage comes with every policy unless the named insured rejects it in writing.
Iowa doesn’t run an electronic insurance verification program, so the consequences of driving uninsured usually show up at a traffic stop or after a crash. A stop can mean a $325 fine, losing your plates or having the car impounded.
Key Takeaways
- Iowa’s minimum is 20/40/15. Bills to raise it to 50/100/25 were introduced in 2025 and 2026, but none passed before the 2026 session ended, so the current limits still apply.
- Uninsured, underinsured and hit-and-run coverage at 20/40 for injuries is part of every policy unless the named insured signs a written rejection. Iowa doesn’t require uninsured motorist property damage coverage.
- The scheduled fine for driving without insurance is $325, or $645 if the charge is tied to a crash. An officer can also take your plates and registration or impound the car.
- An uninsured crash with an injury or $1,500 or more of property damage can lead Iowa DOT to suspend your license and registrations until you post security, the claim is resolved or 12 months pass without a lawsuit.
Iowa Minimum Car Insurance at a Glance
| Coverage | Requirement |
|---|---|
| Bodily injury liability | $20,000 per person and $40,000 per accident |
| Property damage liability | $15,000 per accident |
| Uninsured, underinsured and hit-and-run motorist | Included at $20,000 per person and $40,000 per accident for injuries unless the named insured rejects it in writing |
| Personal injury protection | Not required |
| Medical payments | Not required |
| Collision and comprehensive | Not required by law, but lenders and lessors often require them |
The Iowa Insurance Division (IID) lists these limits on its auto insurance page, and they’re set by Iowa Code 321A.1 and Iowa Code 321A.21. Under Iowa Code 321.20B, you can’t drive on Iowa roads unless financial liability coverage is in effect for the vehicle. The law treats driving in a public or customer parking lot as driving on the highway, since you had to use the road to get there. RateFrog’s guide to liability limits explains how these numbers work.
Alternatives to an Insurance Policy
Iowa Code 321.1 also accepts a bond filed with Iowa DOT, a certificate of deposit filed with the department or a certificate of self-insurance. The deposit option under Iowa Code 321A.25 is $55,000 plus any early withdrawal penalty fee. Self-insurance under Iowa Code 321A.34 is only for someone with more than 25 vehicles registered in their name.
The Bills That Would Have Raised the Limits
Senate File 119 and House File 6 would have raised the minimums to 50/100/25. Neither reached a floor vote. The Legislature’s bill history shows the last action on SF 119 as a subcommittee recommendation on January 28, 2026, and the session adjourned on May 3, 2026. A similar bill, SF 2073, didn’t get past introduction. A new bill could come up later, so check the IID page for the current limits.
Uninsured and Underinsured Motorist Coverage in Iowa
Under Iowa Code 516A.1, an auto liability policy for a car registered or mainly garaged in Iowa has to include coverage for injuries caused by uninsured, underinsured and hit-and-run drivers. The limits have to be at least the state’s bodily injury minimums, so $20,000 per person and $40,000 per accident.
The named insured can reject all of it, or just the uninsured and hit-and-run part, or just the underinsured part. The rejection has to be in writing and signed. If the insurer or agent supplies the form, it has to be on a separate sheet that contains only the rejection and related information. Once you’ve rejected it, the same insurer doesn’t have to add it back at renewal.
The statute covers bodily injury, sickness, disease and death. It doesn’t require uninsured motorist coverage for damage to your car.
Stacking and Multiple Policies
Iowa lets insurers enforce antistacking clauses. Under Iowa Code 516A.2, if you’re covered by more than one policy, you can recover up to the highest single limit available under any one of them, paid according to the policies’ priority rules. You can’t add the limits together. The law also allows policy offsets meant to avoid paying twice for the same loss, so read how your policy calculates a claim.
If your insurer pays you under this coverage and you later collect from the driver who caused the crash, Iowa Code 516A.4 lets the insurer recover what it paid from that settlement or judgment. RateFrog’s guide to uninsured and underinsured motorist coverage explains how these coverages work in general.
Proof of Insurance in Iowa
Iowa Code 321.20B requires you to keep a proof of financial liability coverage card in the vehicle. The card can be on paper or shown electronically, including on a phone. Insurers have to issue these cards, and they provide an electronic version if you ask for one. RateFrog’s guide to getting proof of insurance fast can help if you need a card right away.
How Iowa Checks Your Coverage
Iowa doesn’t have a statewide database that matches registrations against insurance records. Bills to create one, such as House File 2091, weren’t enacted. Without a program, there’s no state lapse notice or lapse fee. Coverage gets checked when an officer asks for your card at a stop or after a crash, which is when the penalties below come in. RateFrog’s guide to what happens when insurance lapses covers the other risks of a gap.
Penalties for Driving Without Insurance in Iowa
What happens depends on the officer’s choice at the stop and whether there was a crash.
At a Traffic Stop
If you can’t show proof for a car registered in Iowa, 321.20B lets the officer choose one of these responses:
- Give you a warning
- Issue a citation
- Issue a citation and take the plates and registration receipt
- Issue a citation, take the plates and registration receipt, and impound the car
If the plates are taken, the car can be driven for up to 48 hours after the citation, only to get it off the road. To get new plates and registration, you show proof of coverage and pay a $15 administrative fee to the county treasurer. To get an impounded car back, the owner has to show proof of coverage, proof that any fine was paid and payment of the towing and storage costs.
Fines
Under Iowa Code 805.8A, the scheduled fine for driving without coverage is $325. If you’re charged and found guilty in connection with a crash, it’s $645. Court costs aren’t part of those figures. Under 321.20B, the court can order unpaid community service instead of the fine. The Legislative Services Agency describes the offense as a simple misdemeanor.
If you had coverage but didn’t have your card, you can show the clerk of court proof that the coverage was in effect when you were stopped. You have to do this before the court appearance date on your citation. The clerk gives you a receipt, you won’t be convicted, and the citation is dismissed, though the court still charges you the costs of the case. Buying a policy after the stop doesn’t qualify.
License Consequences
The penalties written into 321.20B are the fine, the plate and registration removal and impoundment. Iowa DOT’s sanction rules don’t count a citation for failing to provide proof of insurance as a moving violation. The license suspensions tied to insurance described below come from uninsured crashes and unpaid judgments.
A Crash Without Insurance
Iowa’s financial responsibility law applies to crashes that cause an injury, a death or $1,500 or more of damage to one person’s property. Iowa DOT’s financial responsibility page says those crashes need to be reported within 72 hours. Under Iowa Code 321A.5, if you didn’t have a liability policy, the department suspends your license and registrations unless you deposit security, with at least 10 days’ notice before the suspension starts. The DOT’s accident suspension page says the security amount is listed on the notice you receive.
Under Iowa Code 321A.7, the suspension lasts until you post the security, until a release, a finding that you weren’t liable or a written settlement is filed, or until 12 months pass after the crash without a lawsuit. Reinstating costs a $20 fee plus a $10 duplicate license fee.
A court judgment can cause a separate suspension. If a crash judgment isn’t paid within 60 days, Iowa Code 321A.12 has the clerk report it, and Iowa Code 321A.13 has the department suspend your license and registration. Under Iowa Code 321A.14, that suspension lasts until the judgment is paid or can no longer be enforced, and then you also need to show proof of financial responsibility.
SR-22 Filings in Iowa
Iowa DOT uses the SR-22 form as proof of financial responsibility after certain suspensions and revocations. According to its SR-22 page, you have your Iowa-authorized insurer file the form with the DOT. It’s required from the first day of the suspension or revocation and, under Iowa Admin. Code r. 761-640.6, lasts for two years from the effective date of your last suspension or revocation.
Under Iowa Code 321A.17, when a license is suspended or revoked after a conviction, the department also suspends the registrations for your vehicles unless you keep proof of financial responsibility on file. Some suspensions are exempt. Instead of an SR-22, you can file a surety bond, cash or securities worth $55,000, and the DOT lists a few employer and fleet options too.
You can only drive and register the vehicles listed on your SR-22. If the policy is cancelled, the insurer notifies the DOT, and you have to file new proof right away or your license and registrations are suspended. The DOT’s page doesn’t list which offenses require a filing, so ask Driver Services what your case needs. RateFrog’s SR-22 guide explains how these filings work in general.
If You Can’t Find Coverage
The Iowa Automobile Insurance Plan is for drivers who can’t get coverage in the regular market. According to the plan’s page on AIPSO, you have to certify that you tried and failed to get Iowa auto insurance in the past 60 days at rates no higher than the plan’s, and you need a valid license or be able to get one. You apply through an agent or broker licensed in Iowa for auto insurance. The plan’s phone number is 888-706-6100.
How Iowa Insurers Set Rates
Insurers file their rates and rules with the commissioner. Under Iowa Code 515F.5, a filing waits 30 days before it takes effect and stands unless it’s disapproved in that time. Iowa allows credit-based insurance scores, with limits. Under Iowa Code 515.103, an insurer can’t:
- Deny, cancel or nonrenew a policy, or set your renewal rate, based solely on credit information
- Use income, gender, address, zip code, race, religion or marital status in an insurance score
- Take action against you solely because you don’t have a credit card
- Count a missing or thin credit file against you (it has to be treated as neutral or left out)
If a serious life event hurt your credit, such as a divorce, a serious illness, identity theft, the death of a close family member, an involuntary job loss of three months or more or an overseas military deployment, you can ask in writing for an exception, and the insurer has 30 days from receiving enough documentation to answer.
Iowa law doesn’t require any particular discount. Bills to require a discount for older drivers who take a safety course have been introduced several times without passing. RateFrog’s guide to the factors that affect car insurance rates covers what insurers typically look at.
Cancellation and Nonrenewal Rules
Iowa’s Automobile Insurance Cancellation Control law covers personal auto policies for an individual or household. It doesn’t cover policies issued through the assigned risk plan or policies insuring more than four cars.
Once a policy has been in effect for 60 days, or if it’s a renewal, Iowa Code 515D.4 lets the insurer cancel only for reasons such as nonpayment, fraud or material misrepresentation, or a violation of the policy’s terms. Those limits on reasons don’t apply to new policies in their first 60 days. Under the law, cancellation notice has to be given at least 10 days before the cancellation date for nonpayment and at least 30 days ahead for other reasons. RateFrog’s guide to car insurance grace periods explains what usually happens when a payment is late.
Nonrenewal works differently. Under Iowa Code 515D.7, an insurer has to give you advance written notice before declining to renew, and since January 1, 2025, the statute includes a 60-day notice requirement added by a 2024 law. The rule doesn’t apply if the insurer offered to renew and you didn’t pay the renewal premium. If you ask in writing, the insurer has to tell you why it isn’t renewing. Under Iowa Code 515D.6, it also can’t refuse to renew solely because of your age, residence, sex, race, color, creed or occupation.
If you get a statement of the reason for a cancellation or nonrenewal, Iowa Code 515D.10 lets you request a hearing before the insurance commissioner within 15 days. The insurer has to prove its reason.
Is Iowa’s Minimum Coverage Enough?
A 20/40/15 policy can run out fast in a serious crash, and $15,000 of property damage coverage may not pay for a newer car. If a claim is more than your limits, you could owe the rest yourself. Before you sign a rejection of uninsured and underinsured coverage, think about how you’d pay your own medical bills if the other driver has little or no insurance. Higher limits cost more, so weigh them against what you own and could pay out of pocket. RateFrog’s guide to how much car insurance you need can help you choose, and you can compare car insurance quotes at several coverage levels.
Where to Get Help
The Iowa Insurance Division takes calls at 515-654-6600. Its complaint page calls the online complaint form the preferred way to file, and it can’t take complaints about policies issued or bought in another state. For crash suspensions, SR-22 filings and license reinstatement, contact Iowa DOT Driver Services at 515-244-8725.
Frequently Asked Questions
Is Uninsured Motorist Coverage Required in Iowa?
It’s included in every policy for injuries caused by uninsured, underinsured and hit-and-run drivers unless the named insured signs a written rejection. You can reject all of it or only part of it.
What Is the Fine for Driving Without Insurance in Iowa?
The scheduled fine is $325, or $645 if you’re charged and found guilty in connection with a crash. Court costs are separate.
Can Police Take My Plates for No Insurance in Iowa?
Yes. An officer can take your plates and registration receipt, or impound the car. Getting new plates takes proof of coverage and a $15 fee to the county treasurer.
How Long Do I Need an SR-22 in Iowa?
Iowa DOT requires it for two years from the effective date of your last suspension or revocation. A $55,000 bond, cash or securities can be filed instead.
Sources
- Iowa Insurance Division: Auto Insurance
- Iowa Insurance Division: Filing Complaints
- Iowa DOT: Proof of Insurance After a Suspension (SR-22)
- Iowa DOT: Accident Suspensions
- Iowa DOT: Financial Responsibility
- Iowa Code 321.1
- Iowa Code 321.20B
- Iowa Code 321A.1
- Iowa Code 321A.5
- Iowa Code 321A.7
- Iowa Code 321A.12
- Iowa Code 321A.13
- Iowa Code 321A.14
- Iowa Code 321A.17
- Iowa Code 321A.21
- Iowa Code 321A.25
- Iowa Code 321A.34
- Iowa Code 516A.1
- Iowa Code 516A.2
- Iowa Code 516A.4
- Iowa Code 805.8A
- Iowa Code 515.103
- Iowa Code 515F.5
- Iowa Code Chapter 515D
- Iowa Code 515D.4
- Iowa Code 515D.7
- Iowa Code 515D.10
- 2024 Iowa Acts, ch. 1116 (HF 2490)
- Iowa Admin. Code r. 761-640.6
- Iowa Admin. Code ch. 761-615
- Iowa Legislature: SF 119 Bill History
- Iowa Legislature: HF 2091 (90th General Assembly)
- AIPSO: Iowa Automobile Insurance Plan