Minimum Liability Coverage Limits

In order to legally operate a motor vehicle in the state of Iowa you must meet the Iowa car insurance requirements. The minimum amount of auto insurance you must carry is known as a 20/40/15 plan. What this means is that you must carry a minimum of $20,000 in bodily injury liability coverage per injured person up to a total of $40,000 per accident. You must also carry at least a minimum of $15,000 in property damage liability coverage.

It is important to note that liability coverage does not entitle you to receive any payment for damages if you are at fault in an accident. Liability coverage is in place only to pay for the other party's medical bills, property damage, or other expenses if you are at fault.

The state of Iowa follows a tort system which means that whenever an automobile accident occurs someone must be found to be at fault for causing the accident.

Iowa car insurance requirements also state that both the owner and the driver of any vehicle involved in an auto accident must provide proof of financial responsibility. If someone else is driving your car or if you borrowed someone else's car and were involved in an accident, both the driver and the owner of the car must be able to show proof of insurance. Failure to provide proof of financial responsibility may result in losing your license and your registration.

It is very important to be in compliance with the Iowa car insurance requirements if you are going to own or operate a motor vehicle in the state. Although a 20/40/15 plan is the minimum that you are required to have it is also a good idea in many cases to carry more than the required minimum. If medical bills or property damage exceeds the amount specified in your policy you would be financially responsible to pay the difference. Therefore, carrying additional coverage may be a good idea.

It is also wise to carry additional coverage if you have a newer or more expensive vehicle. If this is the case it would be a good idea to carry a comprehensive plan that will protect you financially even if you are at fault in an accident. If you need financing to purchase a car it is very likely that your lender would actually require this type of coverage before making a loan.