• Iowa drivers are required to carry auto insurance.yellow car, a honda japanese sport car model image by alma_sacra from Fotolia.com
  
  If you own a car or drive regularly, then chances are you have auto insurance. In Iowa, as in most states, auto insurance is a mandatory requirement for drivers. While paying for auto insurance may be expensive, these rules and laws for coverage are in place to protect you and other motorists when traffic accidents occur.
  
  

Minimum Requirements

• The state of Iowa has laws mandating the minimum insurance requirements a motorist must have. These minimums fall under "liability insurance," meaning they're designed to protect other motorists in an accident, not you. All motorists must have at least $20,000 in bodily injury coverage per person with up to $40,000 for all persons per accident. Motorists must also have coverage of at least $15,000 in property damage. If you are determined to be at fault in an accident, the settlement funds will first come out of your insurance, and you will then be billed for any outstanding balance.
  
  

Teenage Drivers

• Teenage drivers in Iowa have the same minimum liability insurance requirements as their adult counterparts. AutoInsuranceTips.com notes that many insurance companies recommend more insurance for newer drivers as they account for more accidents on the road than any other demographic. Keep in mind that insuring a teenager will likely cost more than insuring an experienced driver with a good record, though some insurance companies offer student-specific discounts.
  
  

Penalties

• In the state of Iowa, if you cause a traffic accident and are uninsured, you will still be financially responsible for any damages incurred because of the accident, to yourself and the other driver. Moreover, you must set up a payment arrangement in writing with any parties involved who claim damages and file this with the Office of Driver Services; otherwise, your license can be suspended for up to a year. If you get pulled over without auto insurance, you will have your license suspended until you can prove that you've purchased auto insurance.
  
  

Tort Rule

• States fall under one of two categories with regard to auto accidents. There are "no fault" states and "tort" states. Iowa is a tort state, meaning that in any auto accident, somebody must always be found "at fault." While this can be unfair in accidents where no one is to blame, it means that the person deemed at fault is fully responsible for repaying any vehicular, property or health damage incurred during the auto accident.
  
  

Optional Coverage

• While an Iowa driver doesn't legally need more than the required minimum for auto insurance, it may not be enough to protect you or your personal belongings in an accident. In a serious auto accident, the minimum coverage limits may not take care of the entire cost of damages, possibly leaving you to pay the rest out-of-pocket. Consider uninsured motorist coverage and any additional coverage your insurance provider offers. While your premiums will be more expensive, you'll be saving money if you're determined to be at fault in an accident.