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Iowa Auto Insurance Coverage

In Iowa, there are several different types of auto insurance that are offered. Each motorist's car insurance needs will be different, based on their income, the types of vehicles they own, their driving record, and other factors. Because so much goes into the purchase of automobile insurance, it's important that all IA drivers know what is available in their state so they can make the choice that is best for them and their family.

While it may seem that simply purchasing the state's minimum required amounts of auto insurance should be sufficient, the truth is that these amounts are often lower than the cost of an actual accident. Because any costs over and above what the insurance company will pay are the responsibility of the driver personally, it's important that all motorists make sure they have vehicle insurance that will keep them out of a desperate financial situation.

Basic Types of Iowa Auto Insurance - Liability

The most common type of auto insurance purchased in Iowa is liability insurance. As a broad category, this is automobile insurance that covers someone else's injuries and damages when you are in an accident and found to be at fault. Note that this type of coverage does not pay anything to you, but exists solely to make sure that those who suffer injury or damage because of your driving get their needs taken care of. There are two types of this insurance available in IA.

The first type of liability car insurance is bodily injury liability. This kind of vehicle insurance will cover any injuries sustained by someone else in an accident that you cause. In addition, it will pay funeral costs for anyone killed and may, under certain circumstances, reimburse the injured party for lost wages and/or any home health care required by their injury.

The second type of liability automobile insurance available to drivers in Iowa is property damage liability coverage. This insurance will pay for anyone else's property that is damaged in an accident where you are deemed at-fault. Usually, this type of policy covers the damage or replacement of a vehicle. However, damage to buildings, landscaping, and anything else is also covered.

Note that both of these types of car insurance are required by IA state law. Thus, every driver in the state should have at least minimal amounts of both of these kinds of auto insurance.

Basic Types of Iowa Auto Insurance - Non-Liability

In addition to liability insurance, Iowa auto insurance companies offer several other types of coverage as well. While these are not required by law, they may be required by a lease contract or a loan agreement, or may be a wise purchase for drivers under certain circumstances.

Collision insurance is common among motorists in Iowa. This type of auto insurance covers damages to your vehicle, whether you are at-fault in an accident or not. Having it ensures that your vehicle will be repaired or replaced and you will only have to pay the deductible. While having collision insurance can raise your vehicle insurance premium more than some people are willing to pay, that amount is often less than the cost of replacing the vehicle in case of a bad accident. Thus, having collision insurance can be a wise decisions even for drivers on a budget.

Comprehensive insurance is also offered in IA, and many of the state's residents purchase it. This type of insurance covers damage to your vehicle that is not sustained in a car accident. If someone vandalizes the vehicle, it is comprehensive insurance that would pay to repair the damage. Most comprehensive insurance policies also cover the loss of a car that is stolen and not recovered. If you want to make sure that you will have a vehicle no matter what, comprehensive insurance can be the way to go.

Collision and comprehensive coverage are the types of Iowa auto insurance most likely to be written into a lease agreement or a loan contract as requirements. They serve to protect the investor's money should something happen to the car while it is under lease or before it is paid off. Since Iowa courts will honor these contracts, it's important to make sure you have the insurance if it's required of you.

Both collision and comprehensive coverage come with a deductible, which is an amount that you must pay before the company will pay anything. A higher deductible means a lower premium, but also means that you are responsible for more if anything happens to your vehicle.

Uninsured and/or underinsured motorist coverage is another popular type of car insurance in Iowa. In fact, while the state does not require motorists to purchase this coverage, it does require all automobile insurance companies to offer it.

Uninsured/underinsured motorist coverage covers your damages if you are in an accident caused by a driver who does not have insurance or who does not have enough coverage to pay the full amount of your damages. Sometimes, these policies will come bundled together. Other times, you will have to purchase each one separately.

Note that uninsured/underinsured motorist coverage is often subdivided by type, as well. You may need to purchase bodily injury coverage separately from property damage coverage if you want to make sure that both your medical bills as well as any damage to your vehicle would both be covered if you were hit by a negligent driver without insurance or without enough to cover your damages.

Medical coverage is also a common sort of automobile insurance policy to have in IA. This coverage will pay any medical costs sustained by anyone in your vehicle in case of an accident, regardless of who caused the accident. Often, this sort of coverage will pay right away, while getting payment from another driver's bodily injury liability plan can take a long time. With this policy, you will not have to cover any of the costs out of pocket and all the wrangling over finances can take place directly between the two companies.

Personal injury protection coverage is similar to medical coverage. How exactly this type of automobile insurance policy works can vary between auto insurance companies. In general, it pays for hospitalization, medical tests, medical procedures, and sometimes other medical expenses incurred because of an auto accident, regardless of who is at-fault in the accident. This kind of coverage is not terribly popular in Iowa, because it is a tort state. This means that someone must be deemed at-fault in an accident. However, under certain circumstances personal injury protection coverage is still a wise decision.

At this point, you should have all of the knowledge about the types of vehicle insurance available in Iowa that you need to make an informed decision about the needs of you and your family. Be sure to take everything into account, including your overall financial situation, the type of vehicle you drive, how urgently you would need your vehicle repaired in case of an accident, and who the drivers in your house are. If you still have questions about the types of coverage that would be best for you, talk to an auto insurance company representative as they have experience helping people choose automobile insurance.

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