Calculating Car Insurance Costs in Iowa
Car insurance costs vary drastically by state, so it’s essential to understand the elements that determine your rate. These include adding a teenage driver onto your policy, the amount of coverage purchased and your age.
Addring a teenage driver to your auto insurance policy can be an economical way to lower premiums, but it’s essential that you shop around before signing anything. Our car insurance comparison engine in Iowa provides quotes based on individual profiles so that you can find the most competitive prices possible.
Young and inexperienced drivers tend to be considered high-risk by insurance companies, meaning they’ll pay higher car insurance premiums than older drivers. This is especially true if the teen has any driving violations on their record or is involved in a serious accident.
Your credit score plays a significant role when calculating your auto insurance rate. On average, having poor credit can increase car insurance costs in Iowa by 71%! But there are ways to get better deals on rates by shopping around and managing your debt responsibly.
Liability-Only Coverage Is Cheapest in Iowa
Liability-only insurance policies tend to be cheaper than full coverage policies in many states, as paying out a small deductible after an accident makes it less expensive to repair the car than covering all damages resulting from said incident. For instance, in Iowa a liability-only policy costs $23 per month or $270 annually while full coverage costs $329 annually.
The type of vehicle you drive is another important factor when it comes to setting your auto insurance rates. Luxury cars tend to carry higher premiums than mid-sized sedans, while inexpensive models with good safety ratings could save you money on premiums.
Selecting the Appropriate Vehicle for You
When shopping for a new car, consider one that has lower insurance and maintenance costs. Some of Iowa’s cheapest models to insure include the Jeep Wrangler JL Sport, Honda CR-V LX and Jeep Compass Latitude.
When selecting a new vehicle, it’s essential to decide which insurance coverages you require. While Iowa law doesn’t mandate comprehensive or collision coverage, having these types of policies in place can be beneficial.
Uninsured/Underinsured Motorists in Iowa
According to the Insurance Information Institute, 11.3% of motorists in the state do not have any auto insurance at all. This puts Iowa in 27th place out of all states when it comes to uninsured/underinsured drivers.
Liability-only car insurance is the cheapest option for Iowa residents, but it doesn’t provide enough protection in case of an accident with an uninsured or underinsured driver. That is why carrying additional coverages is recommended – to safeguard yourself and those closest to you in case of a mishap.