Although it is mandatory in Iowa for drivers to get liability insurance, not all drivers actually do it, vehicle owners, passengers, and third parties can all benefit from having auto insurance to cover monetary damages in the event of an accident or other covered event. RSH Legal – Iowa Personal Injury Lawyers can help you!
Minimum requirements for auto insurance in Iowa
The following minimum coverage levels are important:
- $20,000 in the event of a single person’s injury or death
- $40,000 if a single accident causes injuries or fatalities to two or more people.
- $15,000 in the event of property damage to another party
Iowa drivers are not penalized if they decline the uninsured/underinsured motorist coverage that their insurance company is required to give.
Iowa Drivers Without Insurance Face Serious Penalties
When asked by an Iowa law enforcement officer, drivers are required to produce evidence of insurance.
An Iowa police officer has three alternatives if they find out you don’t have the bare minimum of auto insurance:
- Warn the public,
- Cite an article, or
- Remove the vehicle’s registration receipt and license plates after issuing a ticket.
Please be informed that in the event that you are held guilty, the injured driver may be able to seize your assets and garnish your future salary, regardless of your financial situation.
Iowa health insurance that is not required
You could end up paying out more than you have in insurance if an accident causes catastrophic injuries to more than a minimal number of individuals or even if the event is relatively small and only hurts a few people. A lot of people opt to get extra liability insurance because of this.
Iowa drivers have the option to obtain additional coverage in addition to liability insurance:
- You and your passengers can rest assured that Med-Pay will cover any medical bills, no matter who is to blame. Per person, Med-Pay limitations usually fall between $5,000 and $10,000.
- Similar to Med-Pay, personal injury protection (PIP) pays for medical bills, lost earnings, and transportation costs.
When you lend your car to a friend or relative, would their insurance cover it?
Assume for a moment that you extended an invitation to a friend to use your truck for a dump run. He rear-ends a station wagon while rushing to the landfill after failing to stop at a red light. Everyone in the station wagon is in critical condition.
Usually, in Iowa, liability insurance is attached to the vehicle. The damages to the station wagon and any injuries sustained by its occupants would be covered by YOUR insurance policy up to the policy limitations.
To the extent that the damages are above the limitations of your policy, your friend’s auto insurance policy can step in as additional coverage.
Your policy would pay for repairs to your damaged vehicle because, in Iowa, comprehensive and collision insurance usually goes hand in hand.