Which Company Has the Lowest Cost of Car Insurance in Iowa City?

Iowa City, Iowa is a small to mid-sized city with a relatively young population of about 75,000. The median age in Iowa City is 26, which places Iowa City among the youngest cities in the United States. The city has a corresponding lower median income as well ($47,000) and a higher poverty rate (27%). However, these statistics may be attributed to a small population in the presence the rather large University of Iowa which boasts 32,000 students.

The relative youth of drivers in Iowa City might set off red flags for insurance actuaries. Younger drivers tend to have more traffic infractions and cause more accidents. However, Iowa City drivers also tend to spend less time behind the wheel. The city has an average commute time of only 16 minutes. That’s unheard of in many parts of the country. In fact, the average commute time nationwide is 26.7 minutes one-way. Iowa City has other advantages, as well.

Additionally, the auto theft rate in Iowa City is also low. In 2018, the city was ranked #294 nationwide for stolen cars. That translates into a mere 180 stolen vehicles and an overall theft rate of 103. Thus, drivers can generally breathe easy if they forget to lock up at night.

What is Required for Iowa City Drivers?

Iowa state regulators require that all drivers carry a certain minimum level of auto insurance. Policies must cover at least $15,000 in property damage, $20,000 for injury of a single person in an accident and $40,000 per accident in bodily damage in order to cover multiple injuries, and also $40,000 in uninsured motorist coverage for every accident; though, uninsured motorist coverage can be waived. While this may seem like ample coverage, the minimum, liability-only coverage is not always adequate.

Fr example, when a driver is at-fault in an accident, they won’t have their damage covered if they only have a liability policy. Nor do drivers with the minimum coverage have recourse to insurance if a tree falls on their car or when a hit-and-run driver smashed into their car. This is why many drivers consider purchasing a collision or comprehensive auto policy.

Additionally, when drivers carry a higher level of insurance, they reap other benefits. In particular, when they are the victim in an accident, they may choose to immediately make a claim with their company rather than waiting for the at-fault driver’s insurance company to settle the matter. The victim’s company can then seek compensation from the other company and the victim can be back on the road in no time.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Iowa City by Insurer

The following chart details the cheapest auto insurance policies in Iowa. This information can help drivers reduce their recurring insurance costs and thus help balance household budgets. However, the lowest cost insurance isn’t always ideal. Before purchasing a low-cost policy only because of the savings, drivers should also research the company’s reputation for customer service as well as their other products. Some companies may have elevated auto policy rates which might be offset by lower homeowner’s or renter’s insurance that can be bundled into one monthly bill.

Compare auto insurance quotes with our expert guide here.

Low Cost Auto Insurance for Bad Credit in Iowa City

Insurance companies weigh many factors when they arrive at a premium rate for their insured drivers. Not only do they factor in age, driving record, and zip code, but they also investigate a driver’s credit score. Drivers with poor credit find that they are charged far more than those with excellent financial records. In fact, a good driver with poor credit pays almost $1,000 more than a driver with excellent credit. They even pay more than drivers with excellent credit but a DWI on their record. However, below you can find some insurance companies that offer excellent options for those with less than stellar credit.

Learn more on finding low cost car insurance rates with poor credit.

Full Coverage Vs. Liability Coverage

What is Liability Only Insurance 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.

What is Full Coverage?

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?

Liability and Full coverage policies have many distinctions but the chief one is that under a liability policy your car is not covered. If you are in an accident and are found at-fault, your liability policy will cover the other driver and her passengers. A full coverage policy, on the other hand, covers damage done to your car as a result of a wide range of accidents, even if you are at-fault. These policies also differ when it comes to premium payments.

Average Annual Car Insurance Rates in Iowa by City

Additional cities in Iowa you can check out.

Take Advantage of These Car Insurance Discounts

There are many ways that you can save on auto insurance in Iowa City:

  • Shop around –

    As you can see from these few examples, the rates insurers charge for the very same driver demographics can vary incredibly. The television commercials by the insurers tell us we can save hundreds of dollars on automobile insurance. Actually, you could save a thousand or more dollars on your insurance each year.

  • Drive defensively –

    If you can stay out of accidents and don’t accrue moving violations, you can save a lot of money on your automobile insurance. People with too many accidents and moving violations have trouble getting insured at any rate.

  • Drive an older car –

    If you have a car that is too old and not worth enough to carry collision insurance, you can save quite a bit of money. This especially applies to younger drivers whose insurance costs are much higher. If they can drive an older vehicle that would just require liability insurance and maybe some inexpensive comprehensive insurance, they can save at least a thousand dollars or more on insurance.

  • Buy collision insurance with a high deductible rate –

    The higher deductible rate you can tolerate in the event of a collision and the need to repair your vehicle, the lower your collision insurance cost will be. Your collision insurance rate will be really high if your deductible is only around $500. If you can tolerate $1,500 or so, you can save quite a bit of money on this portion of your annual insurance rate.

  • Bundle your home and automobile insurance policies –

    If you can buy your automobile and home insurance from the same company, you will likely save money. Most insurers offer a substantial discount for having your home and auto policy with them.

Find ways to lower your auto insurance premiums here.

What are the Factors that Affect Your Iowa City, IA Car Insurance Premiums

Insurance companies factor in many variables when determining your automobile insurance rate. They look at your age, type of car, marital status, gender, and driving record, among other factors. Age is a factor because actuaries have found that older drivers tend to be safer drivers, whether due to experience or caution.

Your type of car is also important. For instance, cherry red convertible sports cars in particular might have the highest insurance rates. On this note, be aware that you might pay a lower premium for driving the sedan version of a sporty, high-horsepower vehicle. Still, what matters most is how you drive your hot-hatch or family wagon.

That’s because your driving record is perhaps the biggest single factor in your insurance rate. It is certainly the one that you have the most control over. That is, the longer you can maintain an incident-free driving record, the lower your rates are sure to be. Incidents can be anything from a minor speeding ticket to a reckless driving charge to being at-fault in a major automobile accident.

Use this guide to find low cost rates with accidents from the top insurance companies.

Helpful Iowa City, Iowa Vehicle Resources:

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