Iowa Auto Insurance Requirements

Iowa is one of the few states in the United States of America where auto is not a necessity to drive legally. You do however have to show proof of financial responsibility. This means that if you are involved in an accident where there is more than $1,000 worth of damaged caused that you have the capability financially to cover the cost. In order to prove this you must have auto insurance, cash available to you to fix damages caused, a written waiver from the other party or you have some sort of plan to make payments to fix whatever damage may have been caused.

Auto insurance is by far the best means of showing financial responsibility. It is also the easiest way to protect your own financial interests. Though it is not required by state law, not having insurance or some other means of meeting the financial responsibility guidelines set up by the state could result in the loss of your license to drive a vehicle in the state of Iowa. In circumstances where you are the only party with damages, you will not be able to go to your insurance company for financial help in repairing damages so it is recommended that you have it.

    The circumstances under state law that you do not have to show financial responsibility include: your vehicle was operated without your permission, you were stopped as defined by law, or no other party was involved, damaged, or injured other than yourself. If this is the case then you are only liable for yourself and damages caused to your property. If you do not have auto insurance you will be financially responsible for fixing any damages.