10 Best Auto Insurance Companies in Iowa for 2025

The best auto insurance companies in Iowa are State Farm, American Family, and Auto-Owners.

State Farm and American Family stand out as the top car insurance companies in Iowa for their wide agent networks and dependable claims support.

Auto-Owners is known for its strong customer satisfaction and flexible add-ons for customized coverage.

Top 10 Companies: Best Auto Insurance in Iowa

Geico provides the cheapest Iowa car insurance rates, starting at just $36 per month. Use this guide to compare the average cost of auto insurance in Iowa by coverage, age, credit score, and driving history to help you find the right fit.

Don’t let expensive insurance rates hold you back from the best car insurance in Iowa. Enter your ZIP code to compare affordable premiums from the state’s top insurance companies.

Compare Auto Insurance Rates in Iowa

Geico is the cheapest car insurance company for drivers in Iowa, coming out with the lowest average rates of $81 per month for full coverage and $36 per month for minimum coverage.

Farmers is another strong contender with full coverage at $82 per month, nearly matching Geico’s rate, but adding attractive policy features like accident forgiveness (Read More: State Farm vs. Farmers, Geico, Progressive, & Allstate).

Iowa Auto Insurance Monthly Rates by Coverage Level

State Farm offers full coverage car insurance in Iowa at $85 per month, with added value from its large agent network and strong service.

Auto-Owners, at $90 per month, is a great choice for drivers who can bundle home and auto policies to save more.

These rates are some of the most competitive in the state, though your overall costs will depend on individual factors such as age, driving history, location, and credit score.

It’s always wise to compare personalized Iowa car insurance quotes before buying a policy.

Driver Age & Iowa Car Insurance Rates

Geico and Auto-Owners are consistently among the best auto insurance companies in Iowa, offering the most affordable rates across all age groups.

Geico offers the lowest rates, making it a top pick for cheap auto insurance for teens, with premiums from $96 per month at age 18 to $36 per month by age 45. Auto-Owners follows closely with rates from $92 per month to $40 per month.

Iowa Auto Insurance Monthly Rates by Age

American Family also remains competitive, particularly for younger drivers, keeping it under $100 a month for teens and cutting rates in half by the time drivers turn 25.

State Farm and Progressive also offer solid rates, but State Farm stands out for being high in both customer satisfaction and price.

Cheapest Cities for Car Insurance in Iowa

Car insurance in Iowa is much cheaper than the national average. The most affordable cities for auto insurance in Iowa, like Ocheyedan and Afton, cost just $19 per month for minimum coverage.

These exceptionally low rates are likely due to the small population and low traffic density, which reduces accident risk, compared to the worst states for filing auto insurance claims.

Full coverage auto insurance costs jump by $100 a month or more in most areas due to the risk of weather-related claims and animal damage.

Monthly full coverage reaches $148 a month in the most expensive cities, yet Iowa remains among the most budget-friendly states for drivers.

How Driving Record Affects Auto Insurance Rates in Iowa

Among Iowa auto insurance providers, State Farm offers the most competitive monthly rates for high-risk drivers.

Coverage costs $47 per month after an accident, $60 per month following a DUI, and $48 per month with a ticket, making it one of the most forgiving insurers for violations.

Iowa Auto Insurance Monthly Rates by Driving Record

Geico offers the lowest rates at $36 per month for drivers without violations, but charges $73 monthly for a DUI.

Auto-Owners insurance in Iowa doubles to $86 a month for a DUI, while Nationwide stays affordable at $79 a month for a DUI.

These companies still stand out for offering cheap auto insurance after a DUI, but you should always compare quotes online after a citation to see which insurance company in Iowa is right for you.

Auto insurance companies in Iowa treat each infraction differently, and you may find better rates somewhere else based on your specific driving and claims history.

Credit Score & Iowa Auto Insurance Rates

Geico, Farmers, and Auto-Owners are among the best companies for cheap car insurance in Iowa with bad credit.

Geico leads with the lowest premiums across all tiers, offering $68 per month for poor credit (Learn More: Allstate vs. Geico Auto Insurance).

Iowa Auto Insurance Monthly Rates by Credit Score

Auto-Owners also provides strong value, ranging from $40 to $76 per month for drivers with lower credit scores.

Farmers offers $37 per month for excellent credit and $70 for poor credit, making it a solid choice across credit levels.

Iowa Car Insurance Requirement Breakdown

Every driver in Iowa is required to carry the minimum amount of auto insurance, which helps cover medical expenses and property damage in the event of an accident.

Drivers who fail to maintain the required coverage can face penalties such as fines, license suspension, or registration issues. Among the types of auto insurance, Iowa’s minimum liability coverage limits are:

• $20,000 for bodily injury per person
• $40,000 for bodily injury per accident
• $15,000 for property damage per accident

Although this basic coverage satisfies the state’s legal standards, it may not offer enough protection in more severe accidents.

For better financial security, many drivers choose to add comprehensive, collision, or higher liability limits.

Iowa Auto Insurance Coverage Options

Liability insurance is required in Iowa to cover injuries and property damage you cause. You may also want to add collision and comprehensive coverage.

Iowa drivers can add collision vs. comprehensive car insurance to their liability policies for full coverage. This covers damage you cause, damage to your vehicle, and non-collision damage like theft, vandalism, fire, hail, or animals.

However, there are several other types of auto insurance that can provide more complete coverage.

Every type of coverage protects against varying risks, ranging from accidents to breaking down on the side of the road.

• Uninsured/Underinsured Motorist Coverage: This covers you if you’re hit by a driver who has little or no insurance, which is especially important in Iowa.
• Roadside Assistance: Assists with common roadside issues like towing, jump starts, flat tires, fuel delivery, and lockouts, offering peace of mind for Iowa drivers.
• Medical Payments Coverage (MedPay): Medical payments coverage is optional in Iowa and covers medical bills after an accident, regardless of fault.

Choosing the right coverage will help you comply with Iowa’s minimum legal requirements and save you from expensive repairs, medical expenses, or uninsured drivers.

Compare insurance companies in Iowa to find the provider with the right types of coverage you need.

How to Save on Iowa Auto Insurance

Many Iowa drivers are familiar with standard insurance discounts, like bundling or good driver rewards, that help lower rates.

But combining traditional discounts, like anti-theft systems, with usage-based programs can significantly reduce Iowa car insurance costs.

Top Auto Insurance Discounts in Iowa

For homeowners in Iowa, the auto and home insurance bundles can knock 25% off your rates with top providers like Allstate and American Family.

The best home and auto insurance companies in Iowa will also reward drivers who park in a garage or add additional anti-theft devices to their home and car.

While discounts are the easiest way to save money with Iowa car insurance companies, there are several other strategies that can lead to even greater savings.

Whether you’re a new driver, switching providers, or simply looking to cut costs without sacrificing coverage, these additional tips can help reduce your premium and keep more money in your pocket.

• Raise Your Deductible: Raising your collision or comprehensive deductible can lower your monthly premium if you’re able to pay more out of pocket after a claim.
• Shop Around at Renewal Time: Auto insurance rates in Iowa can change over time, so comparing quotes each year helps ensure you get the best rate.
• Maintain or Improve Your Credit Score: Many Iowa insurers use credit-based scores, so improving your credit can lower your premiums over time.
• Avoid Gaps in Coverage: Keeping continuous auto insurance coverage in Iowa helps you avoid high-risk status and prevents unnecessary rate increases.
• Choose a Car That’s Cheaper to Insure: Cars that are safe, low-risk, and inexpensive to repair typically cost less to insure in Iowa. Choosing wisely can lead to long-term savings.

Iowa is one of the best states for filing claims, since there are so few of them, but avoiding claims is still a good idea to reduce your rates.

By taking steps like maintaining continuous coverage, improving your credit score, and selecting a vehicle that is less expensive to insure, drivers can qualify for the cheapest car insurance.

Top Car Insurance Providers in Iowa

The five largest insurance companies in Iowa are State Farm, Progressive, Farmers, Geico, and American Family.

State Farm and Progressive make up half of the market just between the two of them. These companies influence how insurance works across the state, shaping everything from car insurance rates by state to available discounts and customer service standards.

For anyone shopping for car insurance in Iowa, it’s especially helpful to compare these top providers, since they often set the standard for coverage options and pricing.

State Farm and AmFam stand out for their personalized customer support and efficient claim payouts. Compare the best car insurance companies in Iowa now with our free comparison tool.

#1 – State Farm: Top Overall Pick

Pros

• Personalized Local Support: IA agents provide personal, friendly service that residents can count on for the long run. Read our State Farm auto insurance review for more.
• Reliable Claims Process: Iowa customers say they receive reliable help after accidents, with agents walking them through the process.
• Established Market Leader: As Iowa’s largest auto insurer by market share, State Farm has earned long-term customer loyalty through dependable service.

Cons

• Limited Online Tools: Digital policy management in Iowa can feel limited, with more reliance on phone calls or in-person visits.
• Add-On Coverage Costs: Useful extras like roadside assistance or rental coverage often come at a higher cost compared to bundled competitors.

#2 – American Family: Best for Claims Service

Pros

• Efficient Claims Handling: American Family is known in Iowa for fast, hassle-free claims on auto and home policies.
• Local Agent Access: Iowa customers get local agent support for claims, not just call centers. Explore our AmFam insurance review.
• Diverse Coverage Support: Whether it’s a hail-damaged roof or a fender bender, American Family covers all types of claims on Iowa policies.

Cons

• Regional Availability: It’s only sold in 26 states, so if you move from Iowa, AmFam car insurance may not be available in your new location.
• Policy Clarity Issues: Certain claim denials in Iowa have been linked to confusion over exclusions or unclear policy language.

#3 – Auto-Owners: Best for Coverage Flexibility

Pros

• Customizable Policy Options: Auto-Owners in Iowa offers flexible add-ons with full coverage averaging $90 per month. See our Auto-Owners insurance review for details.
• Bundle Savings Opportunity: Iowa drivers who bundle auto with home or life insurance can cut costs, with full coverage dropping to around $82 per month.
• Good Credit Rates: Auto-Owners charges Iowa drivers with excellent credit approximately $40 per month, which rewards financial responsibility.

Cons

• Limited Online Features: Auto-Owners lacks digital quoting or mobile tools in Iowa, requiring agent contact despite $90 per month base rates.
• Fewer Instant Discounts: Unlike Geico or Progressive, Auto-Owners offers limited telematics discounts, missing low-mileage savings even at $40 per month.

#4 – Allstate: Best for Multiple Policies

Pros

• Bundled Policy Savings: Bundling auto insurance with a home or renters policy can result in a 10%–25% discount. Find additional info in our Allstate insurance review.
• Trusted Local Network: Iowa residents can take advantage of Allstate’s local agent network and claim support, making it easy to combine policies and services.
• Streamlined Account Management: Bundled policies offer Iowa customers the convenience of a single login for auto, home, and other coverages with Allstate.

Cons

• Higher Base Premiums: Allstate’s Iowa bundling discount averages 14%, making savings smaller than some competitors.
• Reduced Flexibility: In Iowa, sticking with one insurer for multiple lines via Allstate might limit the ability to shop separate coverages independently for optimal pricing.

#5 – Geico: Best for Budget Rates

Pros

• Consistent & Competitive Pricing: Geico offers Iowa’s lowest auto insurance rates, $36 per month for minimum and $81 per month for full coverage, ideal for budget drivers.
• Broad Discount Options: Safe driver and military discounts help Iowa drivers save more than with most competitors. Get a complete view in our Geico insurance review.
• Digital Efficiency Focus: With Geico’s app and website, you can get instant quotes, digital ID cards, and more policy management with none of the in-person hassle.

Cons

• Limited Agent Access: Geico relies on digital servicing in Iowa, offering less in-person help for complex claims or policy updates.
• Service Variability Reports: Some Iowa customers report inconsistent post-claim support due to centralized claims handling.

#6 – Farmers: Best for Safe Drivers

Pros

• Safe‑Driving Rewards: Iowa drivers using the Signal app can earn renewal discounts for consistent safe driving, helping lower premiums.
• Comprehensive Coverage Options: Iowa drivers can add extras like roadside assistance and new-car replacement through Farmers.
• Local Agent Access: Farmers’ Iowa agents offer in-person support and guidance on safe-driving discounts. Discover details in our Farmers insurance review.

Cons

• Renewal Risk: Poor driving habits like hard braking in Iowa can cause your rate to go up at renewal, leading the program to feel punitive for some.
• Higher Starting Premium: Even with discounts, Farmers’ base rates in Iowa are higher than some competitors, averaging around $136 per month for full coverage.

#7 – Liberty Mutual: Best for Add-Ons

Pros

• Agent Familiarity: IA customers can rely on Liberty Mutual’s local agents, who know the rules and may offer add-ons, such as accident forgiveness or rental car coverage.
• Bundling Potential: Iowa homeowners can bundle car insurance with home or renters insurance for better savings and ease through Liberty Mutual.
• Localized Flexibility: IA drivers can tailor coverage with add-ons like roadside assistance and new car replacement. Gain insights from our Liberty Mutual review.

Cons

• Not Ideal for Low-Mileage Drivers: Drivers in Iowa who don’t log a lot of miles may find less value in add-ons like accident forgiveness or rental reimbursement.
• Complex Renewal Pricing: Add-ons can make renewals tricky, and some Iowa drivers report rate hikes without claims if endorsements aren’t reviewed annually.

#8 – Progressive: Best for High-Risk Drivers

Pros

• Flexible Coverage Options: Progressive provides IA high-risk drivers with customizable coverage from $77–$173 per month based on driving record.
• High‑Risk Acceptance: Progressive covers Iowa drivers with DUIs or accidents, offering rates around $173 per month. Get details in our Progressive auto insurance review.
• Digital Policy Management: Progressive’s online tools let Iowa drivers easily manage quotes, payments, and claims without in-person visits.

Cons

• Steep Violation Increases: After a serious infraction, Progressive’s Iowa customers may see premiums rise 40%–60%, adding roughly $70–$100 per month.
• Rate Variability by ZIP: Progressive’s Iowa premiums fluctuate significantly between rural and metro ZIP codes, making monthly costs unpredictable without a personalized quote.

#9 – Nationwide: Best for Deductible Savings

Pros

• Accident Buffer Benefit: In Iowa, deductible credits can ease the cost of a first at-fault accident, with full coverage from Nationwide averaging $79 per month.
• Modest Premium Add-On: The added cost for this feature in Iowa is relatively low, typically under $10 per month, making it accessible for budget-conscious households.
• Safe Driver Incentive: The program rewards safe Iowa drivers with rates starting at $41 per month for clean records. Discover more in our Nationwide insurance review.

Cons

• Value Delayed Benefit: Iowa drivers must wait multiple years to realize full savings, which may not suit those expecting to file sooner.
• Credit Reset Risk: One at-fault accident can reduce the accumulated savings, and in Iowa, where winter weather spikes claims, this can be common.

#10 – Travelers: Best for Policy Choices

Pros

• Flexible Policy Structure: Iowa motorists can customize their coverage through add-ons such as gap or new car replacement, which aren’t always offered by local carriers.
• Competitive Tiered Pricing: Travelers offers flexible IA rates, with full coverage near $103 per month for mid-risk drivers. Learn about Travelers auto insurance review for more.
• Consistent Claim Support: While not local-agent focused like some competitors, Iowa customers report solid claim handling and responsiveness via regional claims centers.

Cons

• Youth Driver Premiums: Travelers’ Iowa rates for drivers under 25 can exceed $147 per month, which may deter younger customers compared to Geico or State Farm.
• Slow Quote Process: Some Iowa users report that obtaining detailed Travelers quotes takes longer, especially compared to fast online-first insurers.

Get the Best Auto Insurance in Iowa

The best auto insurance companies in Iowa are State Farm, American Family, and Auto-Owners for their claims handling and policy flexibility.

Among the best auto insurance companies for claims handling, State Farm stands out for local agent support.

American Family earns praise for claims satisfaction, and Auto-Owners offers strong bundling value but fewer digital tools.

For drivers prioritizing cost, Geico provides the cheapest rate in Iowa at just $36 per month, though it may offer fewer local service options. Enter your ZIP code to get personalized insurance quotes customized to your budget and needs.