Insurance requirements for registering a car in Iowa

Iowa is a rare state that doesn't specifically require vehicle insurance to legally register a car. You can drive on the roads of Iowa without insurance if you want. However, if you are involved in an accident, you must provide the Iowa Department of Transportation with some form of proof of financial liability (vehicle liability insurance); If you do not have vehicle insurance or are unable to produce proof of insurance at the time of the accident, your driver's license and vehicle registration will be suspended.

For this reason, it is still necessary to have some kind of vehicle insurance, even if you don't need it to register your car.

Financial responsibility after an accident

If you are involved in an accident in Iowa, you must do the following to ensure that your driver's license and vehicle registration are not suspended:

• If a police officer does not file an incident report, you must file an incident report form if total property damage exceeds $1,500 or if any personal injury or death occurred.

• You must prove financial responsibility by showing an insurance card from an authorized insurance company or by submitting an agreement to cover the costs if you are at fault.

There are several exceptions to these rules. If you meet any of the following criteria, you do not bear the burden of financial liability after an accident:

• Your vehicle has been lawfully parked or stopped;

• The person driving your vehicle did not have your permission to do so;

• You were the only party that suffered or sustained property damage

Suspension of a license or registration

If your driver's license or vehicle registration was suspended due to an accident or traffic violation, you must show evidence of financial responsibility for at least two years. The minimum amount of motor third party liability insurance required in this case includes:

• A total of $40,000 for bodily injury or death

• The total liability for property damage is $15,000.

In this case, you can prove liability in the following ways:

• Your insurance company may file Form SR-22 with DOT. This document confirms that you currently have at least the minimum amount of vehicle liability insurance.

• Submit a $55,000 surety to DOT or make a cash deposit of the same amount to DOT.

Penalties for Violation

If a driver cannot be held financially responsible when they are in circumstances that legally require them to do so in Iowa, several fines can be assessed:

• A fine of at least $250 or hours of community service in lieu of a fine.

• Suspension of vehicle registration, which can only be reinstated by proving financial responsibility and paying a fee of $15.

• Suspension of driving license

• Confiscation of vehicles

For more information contact Iowa DOT on their website.