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Who Has the Cheapest Car Insurance Rates in Cedar Rapids?

Cedar Rapids, IA is a medium sized city with a population of 130,000, as reported in 2017. The wider metro area has over 272,000 citizens and a higher median household income. Where the city proper has an average income that’s a bit more than $56,000 and the metro area’s average income is $63,000. The average age of residents in the metro area is also a bit higher than usual at 38. On top of this, the average commute time is 17 minutes for city dwellers and only 18 minutes for those in the metro area, while the average American worker commutes 26.1 minutes one-way to work. Cedar Rapids also boasts a rather low auto theft rate. In 2018, the metro area was ranked #175 in the nation, accounting for a per capita theft rate of 200 and only 545 total thefts. While that is better than many other places, citizens of Cedar Rapids should still note that car theft is a reality in their area.

Given the relatively small and mature population, on top of a below-average commute time and low auto theft rates, drivers in Cedar Rapids are sure to find favorable insurance rates relative to other cities. However, it’s worth noting that the lower insurance rates are part of an overall lower cost of living. The average property value in the metro area is only $157,000, which is dramatically lower than most major metro areas.

What are the Insurance Requirements in Cedar Rapids?

Iowa, like many states, requires that drivers carry a minimum level of insurance before taking to the roads. This requirement is usually covered by a liability policy, which will cover damages done to the victim of an automobile accident. That is, the at-fault driver should have coverage for bodily injury to a minimum of $20,000 per person and $40,000 per accident. Policies should also cover at least $15,000 for property damage. Since these policies are the bare minimum required to comply with the law, they are not always optimal for most drivers.

Take note that liability policies do not cover the at-fault driver, who will need to cover their own damages out-of-pocket, including medical bills. Victims who only have liability policies will also find that an upgraded policy could pay off when they are hit. That is, a victim with a collision or comprehensive policy can immediately begin to have their car repaired while the insurance companies settle the claim between themselves.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Cedar Rapids by Insurer

Everyone wants to cut their reoccurring costs. Household budgets are often eaten alive by streaming subscriptions, grocery bills, and insurance premiums. Below you can find a chart that details the cheapest car insurance companies in Iowa and Cedar Rapids. However, be sure to look deeper than a cheap premium rate. Seek out the company with the best service record and insurance packages.

Find cheap car insurance quotes with this expert guide.

Low Cost Auto Insurance for Bad Credit in Cedar Rapids

Iowa is not unique in the fact that they allow insurance companies to base their premiums on their customers’ relative credit ratings. In fact, those with poor credit sometimes pay higher premiums than even those with excellent credit and a DWI. Those with excellent credit and clean driving records can pay nearly $1,000 less than those with poor credit.

Find out the which auto insurance company has the lowest rates for poor credit drivers.

Differences Between the Two Main Coverages

What is Liability Only Coverage?

Liability-only coverage is the cheapest option for automobile insurance. This coverage level only covers vehicles that are not at fault in an accident. Thus, if you carry liability-only coverage and cause an accident, the other driver will be covered by your policy. Any damage done to your car must be covered out of pocket, if at all.

Another way to think of liability insurance is that it protects you from claims made by another driver. Without the protection of insurance, you might be sued if you were to collide with another vehicle.

Why You May Want Full Coverage Car Insurance

Full Coverage is a commonly used term which covers more than just the damage you might cause in an accident, or the coverage you are liable for. If your policy covers your liability to another vehicle, the damage done to your vehicle (collision insurance), and any incidental damage done to your car by any non-auto elements (comprehensive coverage), then you have a policy that is indeed full coverage. If you have a new car, you may wish to cover it with such a policy, as you might want the peace of mind that any damage will be covered by insurance.

What are the Major Differences Between Full Coverage and Liability?

So, liability-only insurance coverage will pay for what you did to the neighbor’s bumper when you backed into it while rushing to work. It will pay for the hospital visit by a bicyclist you hit who has a broken leg. Liability-only only insurance will pay for the utility panel you hit at the RV resort when you had trouble backing in.

Collision will pay for any damage you did to your own vehicle when you backed into that utility panel at the RV resort. Comprehensive will pay for the damage your vehicle suffered when a tree fell on it in intense rains that weakened the soil.

The difference between liability and full coverage insurance policies is that liability only covers other people and their vehicle if an accident should occur where you are at fault, but, with a full coverage insurance plan, you and your vehicle would also be covered along with other’s and their vehicle as well.

Another difference between the two is that a deductible is associated with full-coverage insurance, but not with liability. There is also a difference in price, where full coverage will cost more than liability insurance.

Average Annual Car Insurance Rates in Iowa by City

Additional cities in Iowa you can check out.

Tips to Get a Cheaper Car Insurance Rate

There are many car insurance discounts and ways to save on your policy in Cedar Rapids:

Of course, the best way to keep your auto insurance rates down is to drive safely and avoid accidents. The better your driving record, the lower your rates. However, there are also other ways to lower your rates.

Shop Around for the Best Price

Prices can vary significantly between insurance agencies so you will need to get a quote from each one. To prevent having to go to each site and put all your information in dozens of times, there are some sites where you can compare the rates of several agencies at once that you should take advantage of.

Bundle with other insurance plans

Most insurance agencies offer you a chance to bundle and get many of your insurance needs from one place; such as renters’ insurance, homeowners’ insurance, auto insurance, and more. You can also save when insuring more than one vehicle.

Reduce the Number of Miles you drive

Reducing the number of miles you drive will reduce your risk for accidents and therefore, your insurance rates. Besides that, it could do your body and your health good to walk sometimes.

Check the Insurance Costs for a Car Before Buying it

Before you buy a car, it is important that you check insurance costs first, as some car types can raise your insurance rates much more than others. Some of the things your premiums may be based on include the cars overall safety record, costs of parts and repairs, the price of the car, and theft likelihood.

Increase your Deductibles

The higher the price of the deductibles the less your rates will be. For example, if you were to increase your deductible from $200 to $500 it would reduce your comprehensive coverage and collision rates by 15-30%.

Watch your Credit Score

Did you know that many people check their credit report only to find several mistakes that can be fixed? Check your credit report often, because the higher your credit score the lower your insurance rates will be.

Check out this guide to learn about insurance premium discounts you may qualify for.

What are the Factors that Affect Your Auto Insurance Premiums?

Cedar Rapids drivers are likely to see their insurance rates change over time. There can be many factors, both positive and negative, that impact your regular premiums. One key thing that all drivers face is aging. As you mature as a person and as a driver, your insurance rates are likely to fall. Typically, older drivers are safer drivers. They are less likely to drink and drive, speed, or take unnecessary risks on the road.

Your rates are also dependent, in part, on the type of car you drive. Drivers who love high-powered sports cars will likely spend more for automobile insurance than those who drive less-exciting SUVs and sedans.

Rates are also tied to the deductible on the policy. If you carry collision or comprehensive (full) coverage and opt for a higher deductible, your premiums could be lower. That is, if a tree hits your car, you will pay more up front for the damage to offset the lower premiums you’ve been paying over time.

Use our guide to compare car insurance rates with tickets.

Helpful Cedar Rapids, Iowa Vehicle Resources:

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